Midwest Loses $25.5 Million In Quarter
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Andrew Compart
Milwaukee-based Midwest lost $25.4 million in the first quarter of this year, according to data released June 15 by the U.S. Transportation Dept.'s Bureau of Transportation Statistics.
The airline's Form 41 filings with DOT also show the privately held carrier with less than $1 million in cash and short-term investment at the end of March. Those numbers don't always match up with the amount of cash and short-term investments as reported by airlines in quarterly financial statements and SEC filings, but Midwest's numbers nonetheless show a carrier that was in trouble when it received $12 million in new debt financing this month from Republic Airways and majority owner TPG Capital (DAILY, June 10).
Midwest declined comment June 16 on its first-quarter results. While Midwest did get a cash infusion, replacing its SkyWest-provided regional services with Republic-provided services in connection with the new financing deal is going to cost it. As part of the mutual agreement between Midwest and SkyWest to terminate their air services agreement, SkyWest canceled a $9.3 million unsecured note from Midwest in exchange for a $4 million payment from Midwest, guaranteed by Republic Airways.
Midwest is scheduled to make the payment at the rate of $400,000 per SkyWest aircraft as each aircraft is removed from service between this month and January, SkyWest said. The schedule for the removal of those aircraft has been created in part "to accommodate Midwest's commercial challenges," SkyWest said June 10.
Photo credit: Ken Paul via Wikipedia
