Midwest could feel effect of Northwest-Delta deal

June 4, 2008

Midwest Airlines Inc.'s union pilots are concerned about the company's possible sale as the result of a pending corporate merger, and they've been lobbying members of Wisconsin's congressional delegation to protect the airline.

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Midwest Airlines is owned by Oak Creek-based Midwest Air Group Inc., which was sold on Jan. 31 to investment group TPG Capital, of Fort Worth, Texas, and Eagan, Minn.-based Northwest Airlines Corp. Northwest's 47% stake will be acquired by Atlanta-based Delta Air Lines Inc. if Delta's pending purchase of Northwest wins antitrust approval.

Members of the Air Line Pilots Association's chapter at Midwest Airlines are worried that U.S. Department of Justice officials could require Northwest to sell its stake in Midwest to a party other than Delta in order to win antitrust approval, said Jay Schnedorf, chairman of the chapter.

If that happens, Midwest Airlines could face a difficult situation, Schnedorf said.

With skyrocketing fuel prices eliminating airline profits and forcing carrier consolidations, there could be a lack of buyers that would want to operate a smaller player like Midwest as a stand-alone airline, he said. At worst, a forced divestiture of Northwest's stake could result in Midwest's demise, Schnedorf said.

http://www.jsonline.com/story/index.aspx?id=758690