Travelers used to flying Midway Airlines may be surprised the next time they plan a trip out of Raleigh-Durham International Airport.
Midway, a regional carrier, recently discontinued five routes from RDU, its hub and headquarters, to northern U.S. cities and is planning to cancel four more routes in the near future. Flight frequency to other destinations has also been decreased, as the company attempts to scale back the total number of flights leaving the airport. These cutbacks coincide with Midway's Aug. 14 filing for Chapter 11 bankruptcy.
Though Midway handles a sizable portion of traffic at RDU, officials feel the airport will not experience a loss of customers due to the cancellations.
"[Midway] has shut down some routes in the Northeast, but American Eagle, [a subsidiary of American Airlines], has recently added routes [from RDU to Northeastern markets]," said Mirinda Kossoff, public affairs manager at RDU.
Kossoff believes that American Eagle's additional flights to destinations like Boston, Philadelphia and Washington, D.C., will offset the loss of Midway customers. But Midway spokesperson Karen Wing said the airline will still service all of those cities.
In August, Midway shut down routes to Buffalo, N.Y., Dayton, Ohio, Pittsburgh, Rochester, N.Y. and Washington, D.C. The airline will also soon discontinue flights to Birmingham, Ala., Los Angeles, Providence, R.I., and San Jose, Calif. According to Midway's website, customers who held tickets on those flights will be refunded or accommodated on another flight.
The route cancellations stem from Midway's efforts to cut costs in light of their recent declaration of Chapter 11 bankruptcy, which allows the corporation to restructure its business practices in hopes of eventually turning a profit. The airline has already ceased operation of 17 aircraft and immediately laid off 700 employees, reducing its total workforce by almost 50 percent.
Midway cited the decline of business traffic nationwide--and in particular at RDU-- as one of the many factors that led to the bankruptcy. The airline's rapid expansion, price wars with other carriers and the high price of jet fuel have also contributed to the company's losses.
The struggling airline has been on a search for capital to stay afloat. "Midway has received a $15 million loan from [Wexford Management Co.], a venture capital firm in Connecticut," Wing said. "This money will help us address the need of our creditors and operating needs until we can return to profitability."
In a recent development, Midway sued American Airlines in an attempt to prevent the payment of debt owed to American, which claims $4.7 million from Midway based on a past loan granted to the airline, according to The News & Observer of Raleigh.
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