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Midway Airlines Corporation

Subject to DOT approval, Midway plans to begin resuming scheduled service on or about December 1, 2002. Midway's restart plan and proposed operations will provide significant public benefits. Moreover, the service agreement with US Airways will enable Midway to resume service and ultimately emerge from bankruptcy and thereby enhance domestic competition.

Counsel: Shaw Pittman, Robert Cohn,  202 663-8060

Motion of Midway Airlines Corporation pursuant to Rule 12, to withhold from public disclosure the confidential information contained in the supplement and exhibits to notice of intent to recommence certificated operations.

Counsel: Shaw Pittman, Robert Cohn,  202 663-8060

Midway Airlines Corporation

Letter of Office of Aviation Analysis to Midway Airlines Corp. serving Interim Confirmation of Oral Action taken October 16, 2002, granting Midway Airlines authority to resume certificated operations, subject to certain conditions.

Midway may only conduct air transportation operations performed pursuant to its Regional Jet Service Agreement with US Airways, or under a similar cost-plus service agreement with another certificated air carrier that will be responsible for, at a minimum, all passenger-related reservations, check-in and ticketing, and re­accommodation/refund functions. Midway may not resume any independent operations, including charter service, without first obtaining a redetermination of its fitness for such operations.  Midway may not operate any aircraft having a design capacity of more than 60 passenger seats without first obtaining a redetermination of its fitness for such operations.

By: Randall Bennett

Midway Airlines Corporation

By letter dated October 16, 2002, the Department granted Midway authority to recommence certificated operations, subject to certain conditions. Midway is in the final stages of resuming scheduled airline service, and expects to do so in January, 2003. However, the Department's authority expires by its terms unless Midway has actually begun revenue operations prior to January 1, 2003. Midway hereby requests a modest additional period of 15 days in which to commence certificated operations, i.e. until January 15, 2003. This flexibility will enable Midway to complete the tasks necessary to resume operation. As detailed in Midway's submissions in this docket, the company continues to be fit, willing and able to perform the services for which it was previously certificated. Midway's current business plan operating as a codeshare partner with US Airways under the Regional Jet Service Agreement continues to serve a valuable public interest need as well as the important business needs of both carriers.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202 663-8382

Midway Airlines Corporation

After reviewing the fitness information provided by Midway, we determined that the company would meet our fitness standards provided its resumed operations were all conducted with small (i.e., under 60-seat) aircraft pursuant to its Regional Jet Service Agreement with US Airways, or under a similar cost-plus service agreement with another certificated air carrier that would be responsible for, at a minimum, all passenger-related reservations, check-in and ticketing, and re-accommodation/refund functions. Further, we found that it was in the public interest to orally approve Midway’s request to resume operations, subject to conditions, so that it could make all necessary preparations to resume operations in a timely manner. On October 16, 2002, we orally authorized Midway to recommence operations. Given that Midway would not be resuming operations immediately and that further action was required by both parties to the Regional Jet Service Agreement prior to any resumption of operations, we stated that our oral action would terminate automatically on January 1, 2003, unless Midway had actually recommenced revenue flight operations prior to that date. On December 17, 2002, Midway filed a request for a short extension of time in which to recommence operations. In this request, Midway noted that it was in the final stages of resuming scheduled service and expected to do so in early January 2003. However, since the Department’s oral approval required Midway to actually begin revenue operations prior to January 1, 2003, it would need a short extension of time in which to do so. Specifically, Midway requested that it be allowed until January 15, 2003 in which to resume operations. This request was orally granted on December 18, 2002.

Midway resumed flight operations on January 1, 2003. All of its operations are now conducted under the Regional Jet Service Agreement with US Airways under the trade name US Airways Express.

By: Randall Bennett

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