Midway files for Chapter 11, cuts routes

In addition to cutting its payroll by 50 percent, Midway said it would reduce its fleet by 17 aircraft and discontinue service to nine airports

By Thurston Hatcher
CNN

(CNN) -- Midway Airlines is halting service to nine airports and cutting back flights on many other routes after filing for Chapter 11 bankruptcy protection.

Midway announced Tuesday it will cut its work force by about 700 and eliminate 17 aircraft from its fleet.

It attributed the cuts to what it called a "calamitous drop in business traffic," particularly around its hub at Raleigh-Durham, North Carolina. It also cited rapid expansion, lower fares and the high cost of jet fuel.

"Despite economic conditions that have made a portion of our route network unprofitable and unsustainable, we are confident we will return to profitability by reorganizing and reducing our route network to traditionally profitable routes," Midway CEO and President Robert Ferguson said in a statement.

DISCONTINUED ROUTES • Buffalo, New York • Rochester, New York • Dayton, Ohio • Pittsburgh, Pennsylvania • Washington (Dulles) • Los Angeles, California • Birmingham, Alabama • Providence, Rhode Island • San Jose, California Source: Midway Airlines EXTRA INFORMATION Click for a list of limited routes TICKET REFUNDS • If you bought a ticket from a travel agent, contact that agent • If you bought directly from Midway, contact the airline by >Email: refunds@midwayair.com >Fax: 919-468-1193 >US mail: Midway Airlines Refund Department 2801 Slater Road, Suite 200 Morrisville, NC 27560

Midway said it had net losses of $15 million between January and June.

Midway has discontinued flights effective immediately to Buffalo and Rochester, New York; Dayton, Ohio; Pittsburgh, Pennsylvania; and Washington Dulles International Airport.

It plans to stop flying to Los Angeles, California on August 19; Birmingham, Alabama on August 20; and Providence, Rhode Island and San Jose, California on August 31.

It also will cut about 27 daily round trips on existing routes at 18 other airports. While eliminating flights to Dulles, Midway will maintain a Washington presence at Reagan National.

"What we're doing is returning to the core of our route structure that has been consistently profitable over time, so I wouldn't anticipate any other changes," Midway marketing director Karen Wing told CNN.

Customers with tickets on the eliminated routes will be booked on other airlines or given refunds, the airline said. Ticket-holders who booked seats through a travel agent need to contact the agent. Those who made them through Midway should call (800) 44-MIDWAY or (919) 595-MDWY.

Travelers to other cities are encouraged to contact Midway or their travel agent to confirm their flight times.