MCA is established at Indianapolis in late spring 1967 to offer scheduled passenger and cargo services to Chicago’s Meigs Field via South Bend. Employing one each Piper PA-31-310 Navajo and Beech 99, the new commuter inaugurates daily roundtrips on June 20.
Operations continue apace during the remainder of the decade and into the next. Unable to maintain viability in a time of recession and huge fuel costs, Midwest is forced to shut its doors in late 1974. Its assets will be purchased by Skystream Airlines the following May.
MIDWEST EXPRESS AIRLINES (MIDEX): 6744 South Howell Ave., Oak Creek, Wisconsin 53154, United States; Phone (414) 5704000; Fax (414) 570-0199; Http://www. midwest-express. com; Code YX; Year Founded 1984. This subsidiary of K-C Aviation, itself a subsidiary of Kimberly-Clark, Inc., is organized in 1981 at Appleton, Wisconsin, near company headquarters, to serve as a corporate carrier. Timothy Hoeksema, president of K-C since 1977, is named president/CEO of the airline as well. Employing a Hawker Siddeley HS 125, shuttle flights are inaugurated to Fulton County Airport, Atlanta.
The British-built corporate jetliner is replaced by a $2.7 million Douglas DC-9-14 in April 1983. Four-times-per-week direct Appleton-Atlanta flights now alternate with thrice-weekly service via Memphis. An application is filed with the CAB for the inauguration of public scheduled services and the petition is granted in November. Meanwhile, a separate shuttle service is opened to Chicago (ORD) with a Convair CV-580.
A total of 14,700 shuttle passengers are flown on the year.
The nonunion workforce in 1984 totals 100 and the fleet includes 1 DC-9-14 and 2 CV-580s. The Chicago operation ends in early spring and the Convairs are withdrawn. Two more DC-9-14s are purchased for $3.3 and 3.5 million, respectively, in March and April. Aroundtrip proving flight is made on April 29 from Milwaukee to Boston.
Revenue operations are inaugurated on June 11 and scheduled service is provided on routes to Wisconsin, Illinois, Massachusetts, Texas, and New York. The parent advances the new entrant a line of credit as well as spare parts and operating funds — it even markets the schedule on the sides of its tissue boxes.
Enplanements for the year total 23,000 and start-up costs bring losses of $2.1 million (operating) and $1.1 million (net) on revenues of $5 million.
During its initial climb away from Milwaukee on September 6, 1985 on a service to Atlanta, Flight 105, a DC-9-14 with 4 crew and 27 passengers, suffers an uncontained engine failure. The aircraft continues to climb to 700 ft., then rolls over to the right and plunges into a nearby woods, bursting into flame; there are no survivors. Peter Garrison reviews the accident in his “Crew Miscue,” (Flying 104 (August 1987): 22+).
Despite the adverse publicity surrounding the tragedy, passenger boardings overall for the year skyrocket an almost unbelievable 309% to 95,000. Revenues ascend 150.8% to $15.9 million, but despite an operating loss of $3.5 million, there is a net gain of $1.8 million.
The 210-employee small regional enjoys another fine year in 1986. Winter season charters are undertaken from Wisconsin to Florida. Customer bookings skyrocket another 96% to 184,515 and the fleet becomes all-jet, growing to 5 DC-9-14s.
Airline employment is increased by 44.6% in 1987 to 295 as 2 more DC-9-14s join the fleet. Seasonal scheduled service is begun in December linking Milwaukee with Tampa and Fort Lauderdale.
Passenger boardings increase 55.2% to 286,437 and freight is up by 12.5% to 584,051 FTKs. Revenues total $44.2 million and low costs allow an operating profit of $5.28 million and net gain of $3.2 million.
The workforce grows another 62.7% in 1988 to 480 and the fleet now includes 6 DC-9-14s, 2 DC-9-15s, and 3 DC-9-32s. Orders are placed for 2 McDonnell Douglas MD-88s.
In June, as part of a five-year, $120 million expansion of service, the company launches thrice-daily nonstop Milwaukee to Detroit roundtrip service and the only nonstop frequencies between Milwaukee, Philadelphia, and Newark. In addition, the number of flights from Milwaukee to Atlanta and Dallas (DFW) is increased.
Operations continue apace during the summer and fall. In December, twice-daily nonstops are initiated from Milwaukee to Denver via Grand Rapids, while frequencies from the Wisconsin hub to Newark and Philadelphia become twice daily. Seasonal service to Tampa and Fort Lauderdale is resumed.
During the year, a 60,000-sq.-ft., state-of-the-art aircraft maintenance facility is opened at Milwaukee. Largely unnoticed during the year is the appointment of Tanya Cunningham to the right seat of a DC-9-32; she is the company’s first female pilot.
Customer bookings swell again, up by 40.4% to 402,084. Cargo ascends 31% to 1.72 million FTKs. Revenues zoom upward by 38.9% to $61.36 million, expenses rise 42.9% to $55.62 million, and the operating profit is $5.74 million. Net profit increases to $3.76 million.
Employment continues to rise in 1989, climbing 53.3% to 736. The carrier begins operations from Grand Rapids in January, with direct DC-9-32 flights from Milwaukee to Denver. During the first quarter, an agreement is negotiated with Farmington, New Mexico-based Mesa Airlines for a code-sharing relationship.
Twice-daily roundtrip DC-9-32 flights commence on April 2 from Grand Rapids to Newark. In accordance with the terms of the commuter deal, Mesa’s new subsidiary, Skyway Airlines, paints three Beech 1900s in Midwest Express Connection colors. Services are inaugurated on behalf of the Wisconsin-based large regional on April 17 from Milwaukee to destinations in 4 states; the routes will be profitable within 90 days.
An interline marketing agreement is signed with Flugfelag Islands, H. F. (2)/Icelandair in July that offers discount fares to Midwest passengers connecting to the island-based airline for travel to Iceland and Luxembourg. Originally intended for Wardair Canada, Ltd., two Mc-
Donnell Douglas MD-88s are leased from Polaris in November and December.
Overall passenger boardings accelerate 53.1% to 615,404 and freight climbs 22.1% to 2,110,000 pounds. Revenues shoot up 49.7% to $91.87 million, costs move ahead by 51.7% to $84.39 million, and operating income grows to $7.47 million. Net profit improves to $4.81 million.
Airline employment grows to 950 in 1990 and the two MD-88s enter service in January. Daily nonstop and roundtrip service is begun in February between Milwaukee and Los Angeles and San Francisco, along with direct service to San Diego. A third nonstop Milwaukee-Newark service is started in October, along with a third weekday nonstop from Milwaukee to Philadelphia and a second from Milwaukee to Los Angeles.
During the company’s final year as a large regional, it enjoys a 23% boost in customer bookings to 754,032. Revenues advance 36.96% to $125.82 million, expenses rise 43.07% to $120.75 million, and operating income slips to $5.07 million. The net profit is cut in half to $2.96 million.
The workforce is reduced by 10.5% in 1991 to 850 and the fleet remains the same, In January, the carrier is reclassified to national status by the DOT.
Passenger boardings inch upward by 2.6% to 789,000 and freight skyrockets 64.3% to 5.83 million FTKs. Revenues dip 0.45% to $125.26 million and expenses jump 3.27% to $124.69 million. Operating income plunges to $567,847 and net slides to $102,832.
Company employment is increased by 19.1% in 1992 to 1,093 and the fleet includes 6 DC-9-14s, 2 DC-9-15s, 6 DC-9-32s, and 2 MD-88s. Frequencies are increased on routes to New York and Denver and seasonal services are added to Miami and Fort Myers. It will be reported that the publicity-shy company earns half a million dollars during the summer fare wars, and does not lower ticket prices to make the gain.
Executives from new entrant Kiwi International Air Lines, based at Newark, seek counsel prior to start-up.
Customer bookings bounce upward by 5.2% to 808,025 while revenues ascend 6.9% to $133.9 million. Costs move up only 3.2% to $129.85 million, leaving operating income to increase up to $4.09 million. Net gain surges to $2.01 million and Midwest is one of the year’s only two profitable domestic carriers.
In 1993, President Hoeksema oversees a workforce of 1,092, a 0.6% increase, while the fleet grows by 3 DC-9-32s. Twice-daily DC-9-14 service is inaugurated between Milwaukee and Cleveland and Columbus during the spring, supplemented by daily Skyway Airlines turboprop flights.
Destinations now served from the company hub include Appleton, Atlanta, Boston, Dallas (DFW), Denver, Fort Lauderdale (seasonal), Fort Myers (seasonal), Grand Rapids, Kansas City, Los Angeles, Madison, Miami (seasonal), New York, Philadelphia, San Diego, San Francisco, Tampa (seasonal), and Washington, D. C. Later in the year, a new market is entered at Las Vegas.
The code-sharing alliance with Mesa Airlines is terminated by the Texas-based megaregional.
Passenger boardings shoot up by 18% to 952,490 and freight rises 3.9% to 7.22 million FTKs. Revenues accelerate 23.2% to $165.05 million, expenses ascend only 14.9% to $149.15 million, and the operating profit nearly quadruples to $15.89 million. Net gain reaches $8.67 million.
Airline employment is increased by 23.9% in 1994 to 1,334. Skyway Airlines assumes the routes formerly operated by Mesa Airlines and begins flying as the Midwest Express Connection on February 7 with a fleet of 13 Beech 1900Ds.
Three additional DC-9-31s are acquired from the German airline Aero Lloyd Flugreisen, GmbH & Co.; repainted as the first aircraft to introduce the company’s new color scheme, they enter service during the spring.
In May, a small “focal point” operating base and hub is opened at Omaha, where 100 employees will be stationed, new planes will be maintained, and from which nonstop flights to Los Angeles, Las Vegas,
San Diego, Milwaukee, Newark, and Washington, D. C. (DCA) will be initiated.
It is announced in September that, for the second year in a row, the airline will provide full-season charter service for the Indiana Pacers of the National Basketball Association (NBA). The year’s one-millionth passenger boarding occurs on December 3.
Customer bookings shoot up 22.6% to 1,317,130 while cargo jumps 19.1% to 8.61 million. Revenues swell 11.8% to $184.49 million and expenses surge 17.8% to $175.75 million. Pretax profit slides to $6.73 million while the net profit dips to $5.81 million.
The workforce stands at 1,411 in 1995, a 7% increase. The new Omaha hub is declared profitable at the end of March. The Continental Airlines CALite division pulls out of Milwaukee, leaving the carrier as the dominant airline in the Wisconsin market.
The company completes an initial public stock offering on September 22, with Kimberly-Clark retaining a 20% stake. The initial public offering distributes 4.5 million shares of common stock to the public. Thereafter, company shares are traded on the New York Stock Exchange under the ticker symbol MEH.
Enplanements swell 20% to 1,400,618 and operating revenues jump 27.3% to $259.15 million. Costs accelerate only 18.4% to $227.78 million and allow profits to triple; operating gain reaches $31.37 million and a $19.12-million net profit is posted.
The employee population is increased 12.8% in 1996 to 1,624 and 2DC-9s enter service during the spring. On March 26, the Hilton Hotels frequent flyer program, the only loyalty plan that allows travelers to exchange hotel points for airline miles and vice versa, adds the company to its roster of airline exchange partners.
Weekday nonstop service begins on May 1 between Las Vegas and Madison, Wisconsin; westbound flights originate in Milwaukee. That evening, nonstop moonlight flights commence between Los Angeles and Milwaukee. Passengers receive free champagne and snacks, plus amenities such as blankets and hot towels.
Former parent Kimberly-Clark divests itself of its final 20% interest (1.16 million shares) on May 8. For the second year in a row, readers of Conde Nast Traveler magazine rate the company the No. 1 U. S. airline.
Passenger boardings accelerate 6.3% to 1,489,057 and cargo climbs 3.9% as 7,000 FTKs are operated. Revenues for Midwest Express Holdings, which also includes Skyway Airlines, jump 17.6% to $304.74 million. Expenses grow 18.7% to $270.38 million. Both bottom line figures swell as an operating profit of $34.35 million is reported, along with net gain of $21.75 million.
The employee population jumps 17.4% in 1997 to 1,889. Markets served include Appleton, Atlanta, Boston, Dallas (DFW), Detroit, Fort Lauderdale, Grand Rapids, Indianapolis, Lansing, Los Angeles, Madison, Milwaukee, Minneapolis (MSP), New York, Philadelphia, Phoenix, San Francisco, Tampa, and Washington, D. C.
In January, the company receives the annual “Passenger Service Award” for 1996 from Air Transport World magazine. Three more aircraft join the fleet this year. Year-round frequencies are initiated between Milwaukee and Orlando during the spring.
On May 1, twice-daily nonstop roundtrips commence between Kansas City and New York (LGA). In addition to the nonstop service, the carrier will continue to offer three direct flights from Kansas City to New York (LGA) on weekdays.
Simultaneously, the company upgrades its current twice-daily connecting service from Kansas City to Toronto via Milwaukee through the addition of two nonstops from Kansas City to the Canadian metropolis.
A letter of intent is signed with Japan Air System, Ltd. in October via Dolphin Trade & Finance, Ltd. for the purchase of eight MD-81s. Deliveries to Midwest will begin in December and continue through 1999.
In November, the company announces plans to build a 70,000-sq.-ft. hangar in order to double its hangar space.
Electronic ticketing is introduced before the end of the year and a 32,000-sq.-ft. addition to the Midwest Express Maintenance Center at Milwaukee Airport is completed for a total of 92,320-sq.-ft.
Passenger boardings rise 10.8% to 1,649,885 while freight rises 3% to 9.25 million FTKs. Operating revenues at Midwest Express Holdings jump 14.5% to $309.91 million, while expenses rise 13.7% to $272.11 million. The operating profit climbs to $37.79 million, while the net gain reaches $24.22 million.
The workforce in 1998 is increased to 2,133. On February 5, a major code-sharing agreement is entered into with AMR Eagle, whose four operating companies will be merged into one American Eagle Airlines in May-July. The agreement will come into effect at midyear at Los Angeles and Dallas (DFW). Company passengers at Los Angeles will be able to connect with Eagle flights to Bakersfield, Carlsbad, Fresno, Monterey, Palm Springs, San Diego, San Luis Obispo, and Santa Barbara. From Dallas (DFW), connections will be available to 32 more communities in the south and southwest.
Robert S. Bahlman becomes senior vice president/chief financial officer/treasurer on March 5, the same day Carol Shomicka becomes senior vice president-corporate development.
Services from Milwaukee to Chicago (MDW) end on March 31.
By spring, five more MD-81s have been delivered. As a result, beginning on April 20, the carrier improves its service between Milwaukee and Los Angeles, offering twice-daily nonstop service on weekdays and Sundays and daily on Saturdays. The change eliminates stops in San Diego on the morning flight and at Las Vegas on the night flight.
To replace the current Milwaukee to Las Vegas service, which is nonstop in one direction and one-stop in the other, Midwest simultaneously drops San Diego from its schedule while launching six-times-a-week nonstops between the Wisconsin and Nevada cities.
Also on April 20, seasonal one-stop daily roundtrips are resumed between Milwaukee and San Francisco.
New six-times-a-day DC-9-32 roundtrips are inaugurated on May 4 between Milwaukee and Hartford, Connecticut; four are nonstop and two have one stop in Philadelphia. Simultaneously, the number of daily flights between Milwaukee and Philadelphia is increased from seven to eight.
Midwest Express Holdings Chairman Hoeksema announces on July 8 that it will become U. S. launch customer for the Fairchild Dornier 328JET, a new regional jet configuration of the aircraft manufacturer’s 328 turboprop. Five firm orders are placed for the aircraft, with an option to purchase 10 more; the first machines will be delivered to Skyway Airlines beginning in March 1999.
Four-times-weekday DC-9-32 return service is introduced on August 2 between Milwaukee and Raleigh/Durham. The next day, daily frequencies between Milwaukee and Toronto are increased from 8 to 10. Sporting a new interior design, the first of eight MD-81/82/88s (an MD-82) is delivered during the month; two more will follow in the fall.
Company management and representatives of the local ALPA chapter sit down during August to negotiate their first contract; progress will be slow.
On September 13, four-times-weekday DC-9-32 roundtrips begin from Kansas City to Raleigh/Durham.
Nonstop weekend roundtrip DC-9-32 flights commence on December 5 between Omaha and Orlando. Midwest Express becomes the only airline to offer nonstop service in the Omaha-Orlando market.
The popular winter seasonal service to Phoenix becomes year-round on December 1 as Midwest initiates twice-daily roundtrips from Milwaukee employing one of the new MD-82s. The same day, two other MD-80s replace the smaller DC-9s and allow greater capacity on the existing routes to New York (LGA) and Washington, D. C. (DCA).
On December 19, seasonal service (through April 19) is launched from Milwaukee to Fort Lauderdale, Fort Myers, and Tampa.
Customer bookings accelerate 13.19% on the year to 1,871,227, but cargo traffic drops 14.64% to 7.55 million FTKs. Revenues advance 12.9% to $388.87 million and with operating expenses up 8.9% to $333.21 million, there is a $55.65-million operating profit. Net gain climbs to $35.86 million.
Airline employment is increased 12.9% to 2,133 by the beginning of 1999. While descending toward Philadelphia on a January 15 service from Milwaukee, Flight 150, a DC-9-32 with 5 crew and 55 passengers, encounters turbulence over Lancaster, Pennsylvania; one flight attendant receives serious ankle injuries.
After six months of discussions, company pilots, disappointed with the offers made so far by management, request on February 11 that a federal mediator be assigned to facilitate additional incentive to the stalled talks.
Seasonal Milwaukee to San Francisco weekday roundtrips begin on April 19, with a new Saturday service added as of April 24. Electronic ticketing begins on April 29 for those U. S. travel agencies equipped with the Amadeus reservations system. The same day, it is announced that the company’s flight attendants have voted to join AFA.
During the month, Christopher D. White becomes vice president-safety and regulatory compliance while Michael W. Mooney becomes vice president-planning and pricing.
Per a March 1 announcement, the company undertakes a major expansion of services on May 10. New DC-9-32 roundtrips are offered from Milwaukee to San Antonio via Kansas City four times a day.
The DC-9 becomes available when a larger MD-80 upgrades the current four-times-a-day nonstops between Kansas City and New York (LGA).
In addition, a third weekday roundtrip is started between Milwaukee and Toronto and two nonstops are launched from Kansas City to Milwaukee. The one-stop service between Milwaukee and Hartford is upgraded to a nonstop.
On June 1, a third weekday roundtrip is initiated between Milwaukee and Denver to help meet summer travel demand. Due to a pilot shortage, Midwest Express announces on June 30 that it will cancel 28 of its weekly 950 flights (about 3% of its schedule) in August, September, and October.
While backing his truck into position at Milwaukee on July 2, the driver of a lavatory truck accidentally depresses his accelerator instead of his brake and rams into a DC-9-32 being serviced, causing significant damage. No injuries are reported to the driver or the nine people aboard the Douglas.
It is announced on August 3 that the airline is acquiring four MD-80s from SAS (Scandinavian Airlines System) in a deal to beconcluded between September 2000 and Novemebr 2001. The first aircraft should be delivered within a year.
Four-times-a-day roundtrip service is inaugurated on September 1 between Milwaukee and Washington, D. C. (DCA). Three of the frequencies will include a stop at Kansas City.
On December 11, Midwest offers to take over and expand the New York route of Iowa-based AccessAir, which has just declared bankruptcy. Seasonal return service is resumed on December 18 from Milwaukee to Fort Lauderdale, Fort Myers, and Tampa.
Customer bookings this year jump 17.2% to 2,192,000, while cargo climbs 21.2% to 9.15 million FTKs. Revenues advance 15.6% to $406.12 million, while expenses are up 16.2% to $347.28 million. The operating profit totals $58.84 million.
Airline employment at the beginning of 2000 stands at 2,648, a 38.6% increase over the previous 12 months. The fleet now includes 2 DC-9-15s, 6 DC-9-14s, and 16 DC-9-32s.
Service between Kansas City and Raleigh/Durham is discontinued on January 3. Four new DC-9-32s roundtrips are started on February 7 from Kansas City to Washington, D. C. (lAD); two are operated daily except Saturdays and two on weekdays only. Just in case its pilots strike over the weekend, the company, on February 11, takes the precaution of cancelling 15 flights scheduled for late Friday and early Saturday.
The company, via Senator Tom Harkin, comes forward on February 18 and offers to start flying to New York on June 1 if AccessAir is no longer viable.
Company flyers do not engage in a job action; instead, they overwhelmingly ratify, in March, the first collective bargaining agreement between the airline and the Air Line Pilots Association.
The code-sharing agreement between the American Eagle subsidiary Business Express (BEX) and Midwest is deepened in May. Under terms of the enhanced arrangement, the Milwaukee-based carrier will share its designator on 15 Eagle flights from Boston to cities in the Northeast, Virginia, and Canada beginning during the year’s third quarter.
On June 15, Midwest begins twice-daily Des Moines-New York (LGA) via Indianapolis return flights.
Midwest is named fifth best-managed company among non-state-owned national-sized airlines in the “2000 Index of Competitiveness” published by Aviation Week and Space Technology on July 10.
Four-times-daily Business Express (BEX) ERJ-135 roundtrips, code-shared with Midwest, begin on July 17 from Boston to Toronto. Four-times-daily ERJ-135 roundtrips, code-shared with and flown by Business Express (BEX), begin on July 17 from Boston to Toronto.
On September 8, the company announces that it will open a new hub at Kansas City. Not only will new regional services be offered by affiliated Skyway Airlines, but new nonstop main line flights will be offered as well, beginning as early as October 29.
While backing out after pushing back from the terminal at New York (LGA) on September 15, a ProAir Boeing 737-400 impacts a parked Midwest Express MD-80. The tails of both aircraft are damaged forcing both companies to cancel flights.
On October 1, twice-daily roundtrips are inaugurated from Indianapolis to Boston. The new Kansas City hub opens on October 29; Midwest and Skyway between them offer 22 daily departures from their No. 3 base to 11 destinations.
Midwest, on November 2, signs a letter of intent with Air Midwest. Under its terms, the Milwaukee-based airline will enter a code-sharing agreement with the Mesa Air Group “USAirways Express” subsidiary that will provide passengers with connecting service between Kansas City and 14 Midwest communities beginning during the first quarter of 2001.
It is announced on November 29 that the company will terminate service to Indianapolis on January 6.
As the result of a spring law allowing an increase in traffic, New York (LGA) has, by early December, added more than 200 new daily flights and requests have been made that will increase the daily total by almost 600. In an effort to handle an increase certain to exacerbate existing delays and congestion, the FAA and the Port Authority of New York and New Jersey begin coordinating planning while imposing a September moratorium on new La Guardia flights.
On December 4, the FAA holds an action to distribute the available takeoff and landing slots. Each carrier serving the airport draws a certain number, with each then choosing lots for first choice of times for those slots. Midwest receives eight of the new positions
On December 15, Midwest Express announces that it will launch thrice-weekday roundtrips between Kansas City and Atlanta beginning on March 5. Daily winter seasonal return service, offered through April 22, begins on December 16 from Milwaukee to Fort Lauderdale, Fort Myers, and Tampa.
Although revenues for the year climb 7.3% to $480 million, costs surge 22.3% to $473.1 million. The operating gain plunges 88.7% to $6.9 million, while only a tiny $514,000 net profit is realized.
World History
