Midway Airlines Files for Ch. 11
By Associated Press

August 14, 2001

MORRISVILLE, N.C. -- Midway Airlines said Tuesday it has filed for Chapter
11 bankruptcy protection, reduced flights and laid off half its employees in
the face of plunging business travel.

Robert Ferguson, president of the East Coast-based regional carrier, said
about 700 employees were being laid off immediately, including 189 pilots.
The company said in a statement that its financial problems were caused by a
"calamitous drop in business traffic," low fares, slow growth and high jet
fuel prices.

Midway's base is at Raleigh-Durham International Airport in North Carolina.
In addition to cutting the payroll by 50 percent, Midway said it would
reduce its fleet by 17 aircraft and discontinue service to nine of its 28
destinations.

"Despite economic conditions that have made a portion of our route network
unprofitable and unsustainable, we are confident we will return to
profitability by reorganizing and reducing our route network to
traditionally profitable routes," Ferguson said.

The company filed for bankruptcy Monday night. Employees were notified late
in the night that they no longer had jobs.

Flights dropped as of Tuesday were to Buffalo and Rochester, N.Y.; Dayton,
Ohio; Pittsburgh, Pa., and Washington-Dulles. Service to Los Angeles will be
dropped Aug. 19 and service to Birmingham, Ala., will be discontinued Aug.
20. Service to Providence, R.I., and San Jose, Calif., will be dropped on
Aug. 31.

Midway will maintain its current number of flights only to Washington-Reagan
National. Flights to the other 18 remaining destinations will be trimmed,
including Atlanta, Boston, Hartford, Miami, New Orleans, New York-La
Guardia, Orlando, Philadelphia and Tampa.

For the quarter ending June 30, Midway had losses of $7 million. As of June
30, the company said it had $318 million in assets and liabilities of $232
million.

Copyright © 2001, The Associated Press
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