Midway Airlines (1976–1991): Difference between revisions

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The August 1978 CAB ruling (against a backdrop of the [[Airline Deregulation Act]] going through Congress) was good news/bad news for Midway. Good news: it got the routes it wanted. Bad news: so did everyone else. Midway believed it deserved (as the self-proclaimed innovator) all six Midway routes to itself, at least for a time, to become established. But the CAB noted that Southwest might be the innovator (see prior section) and projections showed it to be the most efficient applicant, but the CAB wouldn't play favorites. Midway, Southwest and [[Regional airline#Early growth|local service airline]] [[North Central Airlines|North Central]] each got all six routes and Northwest and Delta got the select Midway routes they asked for. In addition, Midway and the Southwest Midway subsidiary were both given economic certification as well. The CAB was on a roll: it had already opened an even broader Midway airport proceeding for another 24 routes.{{sfn|Proceeding|1978|p=454-592}} There was substantial doubt Midway Airlines would get funding given what looked like an avalanche of future service at the airport.<ref>[https://www.newspapers.com/image/386662496 ''Midway Airlines can’t get backing'', Chicago Tribune, December 17, 1978]</ref>
 
But, notwithstanding early interest, few airlines made any subsequent moves toward Midway Airport, because deregulation put all networks up for grabs; there were more pressing concerns.<ref>[https://www.newspapers.com/image/385469790 ''Midway budget flights in spring'', Chicago Tribune, November 13, 1978]</ref> While Southwest continued to participate in Midway CAB cases, it took no practical steps towards service. Lamar Muse was long-gone, and Southwest would not enter Midway until 1985.<ref name="WNMDW"/> Even with the way relatively clear, Midway Airlines found it hard to raise money, Chicago investors were generally uninterested.<ref>[https://www.newspapers.com/image/386818628/ ''Lot of groundwork preceded first flight of new airline'', Chicago Tribune, October 31, 1979]</ref> On August 2, 1979, it announced it had raised $5.7mm from 16 private investors, only one of which was Chicago-based, allowing the airline to head towards a November 1, 1979 start date for a three-aircraft launch with 83-seat DC-9-10s.<ref>[https://www.newspapers.com/image/386926625/ ''New airline to offer low-cost rates from Midway to 3 cities'', Chicago Tribune, August 3, 1979]</ref> In September, the CAB gave 15 airlines (including, of all airlines, [[Wien Air Alaska]]) the right to fly those other 24 routes from Midway. One was [[FedEx Express|Federal Express]], having obtained Boeing 737-200QC aircraft with which it wanted to fly packages at night and passengers during the day.<ref>{{cite journal|journal=Economic Cases of the Civil Aeronautics Board|volume=83, Part 1|title=Chicago-Midway Expanded Service|date=September-October 1979|publisher=Civil Aeronautics Board|pages=272-412 |url=https://hdl.handle.net/2027/ien.35559002074676}}</ref> This was Fedex’s “Project Torso”, wherein founder [[Frederick W. Smith|Fred Smith]] briefly toyed with the idea of passenger service.<ref>{{cite book|first=Roger J.|last=Frock|title=Changing How the World Does Business|date=2006|location=San Francisco|publisher=Berrett-Koehler |pages=181-182|isbn=1576754138|url= https://www.bkconnection.com/books/title/changing-how-the-world-does-business}}</ref> At the time, Fedex had a highly profitable monopoly on overnight delivery growing at 40% per year.<ref>[https://www.newspapers.com/image/772214000 ''Federal Express Seeking Expansion Area'' Memphis Commercial Appeal, September 10, 1978]</ref> Passenger service was a distraction. But ultimately, none of the 15, other than Midway, did anything with this broad new authority.
 
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