Two years after relocating its hub to Raleigh-Durham International Airport, Midway Airlines found itself struggling financially with an uncertain future.
The airline was able to stay in the Triangle, however, after a group of investors primarily led by Dr. James Goodnight, a Cary businessman, purchased the airline two weeks ago, allowing many in the Triangle area to breathe a collective sigh of relief.
Goodnight's $22 million acquisition of the airline is expected to infuse the airline with much needed capital to restructure its debts, and to keep its Raleigh-Durham based hub in place.
"The Triangle area will benefit from keeping the Midway hub at Raleigh-Durham, offering more choices in flight schedules and destinations," Goodnight said in a press release issued Feb. 11.
Rick Martinez, public affairs manager for the airport, said that travelers should not expect significant changes in Midway's services. "They are going to stay exactly the way they were," said Martinez. "If you flew Midway two weeks ago and then flew again today, I don't think that you would know the difference."
Midway intends on keeping the flight schedules and rates similar to those before the buyout, Martinez said. Local air travelers said that they are pleased to know that the takeover will not be affecting their travel plans.
"I didn't know about the takeover before I bought the ticket," said Trinity senior Cathy Steadman, "but I am glad they are staying in the area because they offer good prices."
The attraction of keeping the hub in the Triangle area is primarily due to the growing amount of business in the region, Martinez said. He also said that the number of college students in the area who use the airlines for vacations enhances the location's desirability.
"Keeping the airline here is a big issue," Martinez said. "They do have a very loyal base of travelers."
The airline, by staying in the area, hopes to demonstrate its commitment to Triangle-area customers.
"Today's announcement [of the purchase] illustrates Midway's commitment to North Carolina," said Robert Ferguson, the newly appointed president of Midway Airlines, in a press release Feb. 11. "Midway Airlines has done a job in building its Raleigh-Durham operation and establishing quality reputations for industry-leading schedule reliability, on-time performance and baggage handling."
Ferguson added that keeping Midway at its current hub would be a priority. "Our objective is to remain upon this sound base and to build the profitability of Midway to permit further growth. Midway's focus upon Raleigh-Durham and its business and leisure travelers will remain unchanged."
In addition to the Triangle's growing business population and universities providing many customers, weather plays an important role in the placement of hubs and in Midway's decision to remain in the area, Martinez said.
Martinez said that usually the area's weather encourages travel through Raleigh-Durham. "I don't think people realize how expensive it is to operate an airline especially under adverse weather conditions," he said.
He pointed out that in 1996, Midway turned a profitduring nine months, but due to the deplorable weather conditions of last winter's ice storms and two back-to-back hurricanes in the other three months, the airline suffered a devastating blow.
"Airlines are very cognizant of weather conditions in different locales," said Martinez. "The Raleigh-Durham area is known for its mild winters, which allows flights to run on schedule during peak seasons. Midway will not let last year's fluke weather change its decision to stay in the area."
Get The Chronicle straight to your inbox
Signup for our weekly newsletter. Cancel at any time.