There have been two carriers named Midway Airlines in aviation history. The first was an airline flying out of Chicago between 1979 and 1991. Shortly after, another airline, going by the same name, began flying, ceasing operations a decade later in 2003. What is the history of these two airlines?

The original Midway Airlines

Midway Airlines commenced operations on October 31st, 1979, with a pair of McDonnell Douglas DC-9s, and it is widely seen as the first post-deregulation airline startup. The airline went on to fly to many destinations across the US, Canada, and the Caribbean, and also incorporated additional aircraft into its fleet, including several MD-80 series aircraft and 14 Boeing 737-200. One of the carrier's early TV commercials can be seen here:

The name of the original Midway Airlines came about thanks to the carrier's close links to Chicago Midway International Airport (MDW). In fact, the very idea behind the creation of the carrier was to revive the struggling airport - something which it did with much success, at least until it encountered financial difficulties in the 1990s.

Midway Airlines went on to file for Chapter 11 bankruptcy protection in March 1991, citing the rising cost of jet fuel amid the Gulf War, and a drop in passenger numbers as the reasons. Unfortunately, the carrier was unable to recover financially, and ceased operations just eight months later in November 1991.

The Airline Deregulation Act of 1978 led to seismic changes in the US aviation industry - find out more with this report from the Simple Flying team.

Same name, different carrier

A group of investors soon bought the name Midway Airlines to form a new carrier; a venture that was rooted in an earlier operator called Jet Express, which had operated feeder services for USAir and Trans World Airlines. Many of the original airline's employees moved across to the new Midway Airlines, including one of its founders, Kenneth T. Carlson.

The Midway Airlines name returned to the skies in November 1993, operating from Chicago Midway International Airport to LaGuardia Airport (LGA) with two Fokker 100 aircraft. Over the next few years, operations expanded to destinations nationwide, including Philadelphia (PHL), Boston (BOS), and Denver (DEN).

A new home

1995 was an important year for Midway Airlines, as tight competition and limited gate space caused the airline to move to North Carolina, where it established a hub at Raleigh–Durham International Airport (RDU). The name 'Midway' was still fitting, given that it now sat between the north and south of the country.

Following this switch, the carrier began ramping up its amenities in a bid to move away from its low-cost carrier roots. With this new approach, it also placed an order for four new $45 million Airbus A320s, which helped the airline to expand its operations in the Caribbean. Throughout its first year of operations at Raleigh-Durham International Airport, Midway Airlines carried 1.2 million passengers, and its workforce grew to over 1,100 employees.

However, by early 1996, financial difficulties were beginning to bite. Midway Airlines' Caribbean expansion had not worked out as hoped, and the carrier had to return three of its A320s. Faced with losses of $8 million per year, the airline's leaders searched for investors in the hope of tripling its size by the turn of the millennium.

Going public

Midway Airlines soon raised $20 million from two investors, which allowed the carrier to purchase additional aircraft, including ten Bombardier CRJs, and launch new routes. In December 1997, Midway Airlines went public on the NASDAQ stock exchange.

Over the following years, there were a series of failed takeover attempts, and by 1999, the airline was facing tough competition - Southwest Airlines announced plans to serve Raleigh-Durham International Airport, and US Airways' low-cost MetroJet offered passengers a budget-friendly alternative.

Southwest Airlines Boeing 737
Photo: Philip Pilosian | Shutterstock

Regardless, MidwayAirlines was still intent on growing, and ordered 15 new Boeing 737 aircraft. By the end of 1999, it was carrying 2.1 million passengers per year, and annual revenues had increased to £218 million. However, profits were once again on the decline.

A twist of fate

In August 2001, Midway Airlines filed for Chapter 11 bankruptcy protection, blaming a significant drop in business travel, along with slowed air traffic growth and high fuel prices. The carrier immediately announced plans to make 700 employees redundant.

Deborah C. McElroy, President of the Regional Airline Association, emphasized that the carrier was facing the same issues as the rest of the airline industry. These problems were primarily poor sales to business passengers, along with rising fuel and labor costs. As reported by The Washington Post, McElroy said,

"Business travelers make up more than 65 percent of regional airline traffic, so we have been affected in many markets by the economic slowdown. You're experiencing the very significant increase in labor costs at the same time that your revenues are down. As a result, it makes it even more difficult to operate profitably. These issues have made it very difficult to operate profitably as an airline."

Stuck in a rut

Midway Airlines was confident that it would return to profitability by reorganizing and reducing its route network to traditionally profitable routes. However, this was not to be the case for the airline.

The carrier re-emerged two months after grounding following the September 11 attacks, and soon partnered with US Airways to operate regional flights as part of the US Airways Express service. However, on July 17th, 2002, Midway stopped flying once again, this time until February 2003.

The airline again worked on a limited service with US Airways Express, but ceased operations entirely on October 30th, 2003, amid Chapter 7 bankruptcy.

Ultimately, the airline was unable to acquire enough capital to keep running, despite multiple cash infusions, and a combination of financial difficulties and a changing aviation industry post-9/11 proved to be too much for Midway Airlines.

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Did you ever fly on one of the two carriers named Midway Airlines? Share your experiences by commenting below.

Source: The Washington Post