Midwest Airlines…the Cookie, which successfully fended off a takeover bid last year, is racing to avoid bankruptcy in the high-cost fuel environment that has hurt so many carriers.
It will ground 12 of its 37 jets, retiring its MD-80 aircraft, which will produce a reduction in overall flights. They are asking frontline employees to take pay cuts of up to 65%. CEO Timothy Hoeksama, unlike many CEOs in such dire circumstances, will be having his pay cut by 40%. Senior VPs will take a 25% reduction, Corporate officers, 17%, and directors and senior managers 11%. On the other hand, Hoeksama likely made millions when Midwest Air was bought out by TPG Capital and Northwest Airlines.
The upcoming combined Delta-Northwest has advised they plan to maintain the airline separately from their own service. Of course, there will be changes. No MD-80s means no flights to the West Coast, including Seattle, San Francisco, Los Angeles, San Diego.
Hopefully, the cookie will survive in one form or another. We’re still hoping to get our fresh-baked cookie one day soon.