The Milwaukee Business Journal is reporting a quote from a pilot at Midwest Airlines that the Boeing 717 Fleet may be completely phased out in 2009.  The speculation is that all of the existing routes will be flown using Embaer 170 aircraft leased from Republic Airlines. 

On the surface, this seems bad.  In reality, I see a gleam of hope for Midwest.  The Embraer 170 seats almost as many people as the 717 but cost much less to operate and its pilots are paid less as well.   It’s actually a comfortable aircraft to fly and it would quite possibly allow Midwest to fly profitably the remaining routes it has. 

Fans of Midwest Airlines’ Signature Service will no doubt be upset about losing access to that hallmark service but the reality is that it isn’t profitable and was probably retained way too long. 

I continue to wonder what Midwest Airlines wants to be in the future.  A small regional airline with no real connections to any other airline?  That really doesn’t strike me as a recipe for financial success.  They do have connections to Northwest Airlines (Delta) but I firmly do not see them becoming a “feeder” or “connection” airline for them.  Delta / Northwest simply have too many successful regional airlines already under their umbrella and, in fact, Ed Bastian, President of Delta, has already said that Delta expects to pare down the number of regional airlines serving Delta.

While I do think Midwest Airlines can make some money flying the E-170, I still don’t think they have a viable long term strategy for success.  They stay on the death watch for now.

Filed under: Airline News, Airline Service, Death Watch by ajax