Midwest Express, known for its all-business-class service, will launch a leisure-orientated low-fare unit later this year. It has also suspended $9.5 million in lease and debt payments through to 7 June so it can negotiate lower rates.
The moves come during its plan to save more than $4 million per month by furloughing 13%, or 430 of its workers, trimming pay for others, reducing capacity by 12% and cutting back on meal service. The carrier, which is changing its name to Midwest Airlines, has just $30 million in cash on hand. The low-fares unit will use five owned Boeing/McDonnell Douglas MD-80s.
Midwest has taken the first of its 25 Boeing 717s, which will be delivered at the rate of one a month.
Source: Airline Business
