The airline has fallen behind in payments for gate space at its hometown Milwaukee Mitchell International Airport. Midwest, according to a story in Milwaukee's Journal Sentinel newspaper, has made partial payments but is 30 days overdue on more than $1 million in fees.
The report says Midwest, which was purchased by a consortium led by TPG Capital for $450 million last August, continues to contemplate a Chapter 11 reorganization as it attempts to deal with high fuel prices.
Midwest's fate is likely tied to its success or failure in reaching an agreement with its unions on pay cuts. The two sides have been quiet in recent weeks, but the pilots say Midwest has asked to eliminate half of its 400 aviator jobs and wishes to reduce some wages by more than 50%.
Fuel prices have retreated from their highs, leading to an improvement in sentiment among airline watchers. But Midwest is not out of the woods yet. - Lou Whiteman
See Journal Sentinel story
See Dealscape post on Midwest cutting 40% of its staff
See Dealwatch: Airlines
Private equity-backed Midwest Air Group Inc. has been largely silent since announcing last month it would cut 40% of its staff in an effort to prevent a bankruptcy filing. But the company's troubles apparently are far from over.
