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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Mon, Apr 07, 2008

Midwest Subsidiary Skyway Flies Its Last Flight

SkyWest Airlines Takes Over Routes

"It's a tough day." That was how Jason Gross, who until Saturday was a pilot for Midwest Airlines regional carrier Skyway, described the impact of the carrier's cessation of operations this weekend.

As ANN reported, Midwest announced in January it planned to scrap Skyway, in favor of farming out regional flights to SkyWest Airlines. That Utah-based carrier began taking over routes formerly operated by Skyway in March; on Saturday, the last Skyway flight arrived at Mitchell International Airport in Milwaukee, WI, from Green Bay, greeted by a water cannon salute.

Midwest's reason for grounding Skyway is similar to why American Airlines and Delta are looking to sell off their own regional operations: because often, contracted carriers can fly those same routes, much less expensively.

It's worth noting no one could accuse Skyway of being a financial drag on Midwest's ledger sheets; in fact, the regional carrier was the fastest-growing among Midwest's holdings in terms of passengers and revenue. The airline also posted a significant bump in earnings last year... but Midwest believes SkyWest offers the opportunity for even greater profits.

SkyWest plans to fly most of Skyway's old routes, though the new airline will end service Michigan's Upper Peninsula. SkyWest does offer some enticing features for passengers used to flying Skyway, and its older Fairchild 328 regional jets; SkyWest flies 50-seat CRJs.

The move left 380 former Skyway flight attendants, gate agents, and pilots out of work, including Gross -- who moved with his wife from Waukesha to Milwaukee two years ago to fly left-seat for the airline. "This was all my hopes and dreams to come here," he told WTMJ-4.

Rendell Schmidt, chairman of the pilots union at Skyway, said the last contract was negotiated with the assumption the carrier would remain in business... so pilots don't have any severance packages, unlike FAs and mechanics.

Gross is among a handful of Skyway pilots who found work with other carriers; in this case, Northwest subisidiary Compass Airlines. But he's starting at the bottom of the seniority list, and the new job means a commute to Minneapolis.

"We're going to stay here no matter what," said Jason Gross' wife, Shannon. "We have too many family and friends here to leave."

Though its flight operations are now grounded, Skyway will continue to provide limited services for Midwest Airlines and Midwest Connect, including ramp operations and dining services.

The operation hopes, in turn, to contract those services to other airlines down the road... meaning, one day Skyway may be the benefactor, not the victim, of outsourcing practices.

(ANN thanks SkyWest Capt. Moises Romero for his photo of the water cannon salute.)

FMI: www.midwestairlines.com, www.skywest.com

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