Filed under: Business, Airlines, News
Further adding to the speculation about the future of Midwest Airlines, the embattled airline today announced that it is cutting forty percent of its workforce via furloughs and layoffs. In light of the escalating fuel crisis, this cut follows the announcement that it will be grounding all of its MD-80 aircraft.Sad news for a small airline that is struggling to make its mark in the ultra competitive and expensive market that currently is the airline industry. Will they make it through the oil surge?
Over the Fourth of July weekend my girlfriend flew Midwest through Kansas City and generally had good things to say about the airline. Seats are nice, leather and spacious while food and beverage is not only existent and free but also quite supple. Her main observation? "There are only like ten people on this flight."
If, even over a holiday weekend, you can't fill up your planes, then you either have a serious pricing or a serious consumer confidence problem. Why? Since many people have been hearing rumors about the airline going under, demand for tickets has probably gone down. What's an airline to do to inspire confidence?
Well, you could always promise 100% refunds on your tickets if you liquidate. With so many people booking flights and losing their money on flops like Skybus and Maxjet, I think that the least they deserve is a guarantee that they'll get their money back if you take the plunge.
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