Midwest Airlines announces 40 percent work force reduction

At the beginning of this week Midwest Airlines announced its plans to cut its work force by 1,200 when it grounds the 12 MD-80s in its fleet.

The work force reduction represents 40 percent of the carrier’s current staff at Midwest and its subsidiary, Skyway, combined. The airline’s fleet comprises the MD-80s, which will remain in service until the end of the summer, and also 25 Boeing 717s.

“In order to successfully restructure, there is no way to avoid deep and painful reductions to our current work force,” noted the chairman and chief executive of the airline, Timothy E. Hoeksema, in a prepared statement.

The carrier reported that it would begin notifying employees affected by the cuts next week, with the reduction to take place by mid-September. The cuts include unionized fight attendants and pilots, according to Michael Brophy, a spokesman for the Wisconsin-based airline.

Brophy also reported that Midwest Airlines was continuing its talks with union officials to attempt to reach agreements on concessions that would help reduce the carrier’s operating expenses.

“We need some fairly meaningful and significant concessions from each group,” he added. “We’re making some progress but we need more progress.”

Midwest, like other airlines, has been seriously affected by soaring fuel costs.

In January, private equity firm TPG Capital purchased 53 percent of the Midwest Air Group Inc. for around $450 million. The balance is owned by Northwest Airlines Corp.

www.midwestairlines.com