Midway Airlines shuts down

[Guest donaltopablo]

Disappointing news for Raleigh and the airline industry.

Judge orders liquidation of Midway Airlines assets

By EMERY P. DALESIO

Associated Press Writer

RALEIGH, N.C. -- A federal bankruptcy judge on Thursday ordered the liquidation of the assets of Midway Airlines, a regional carrier for US Airways that had fought to stay in business after filing for bankruptcy two years ago.

"Sometimes, despite the best efforts, reorganization efforts don't work out," Judge A. Thomas Small said.

Midway Airlines' attorney Gerald Jeutter Jr. said the carrier had been unable to reach an agreement with its 85 pilots and filed court papers before Thursday's hearing to convert the airline's reorganization effort into a liquidation effort. The judge later signed the liquidation order.

"Midway surrenders," Jeutter said. The company had 188 employees.

Jack Butler, an attorney representing US Airways, said the airline had loaned Midway $8.6 million since December to keep it flying as a commuter feeder carrier. But he said Midway was running out of money and had been unable to operate its entire flight schedule in the past month.

Midway parked its eight aircraft Wednesday night, pending the bankruptcy hearing, and was not expected to resume flights. It had been flying 30 roundtrips a day with Raleigh-Durham International Airport as its hub.

"We will accommodate customers on other US Airways flights or those of other airlines," US Airways spokesman David Castelveter said Thursday.

Midway Chief Executive Robert Ferguson said he expected Midway's assets to be sold within three or four months. The assets total almost $50 million, primarily two jets owned by Midway and spare parts, he said.

Midway, which once had a fleet of 40 planes, filed for bankruptcy protection in August 2001, listing assets of $318 million and liabilities of $232 million. It posted losses of $15 million in 2000 and another $15 million in the first six months of 2001.

[uptownliving]

Well since Midway was masked as a USAirways Express carrier the passengers won't notice a difference. RDU still has great competition for an airport its size....the largest carrier there now is Southwest Airlines....

but this is bad news for the former employees of Midway...one of which is a friend of mine in Raleigh....he is looking to come to Charlotte now as Mesa continues to buildup and hire.