Midway to be bought for $9.15 million by Mesa Airlines in bankruptcy proceedings

By Carlise Newman

Chicago, Dec. 11 - Midway Airlines Inc.'s assets will be bought for $9.15 million by Mesa Air Group Inc. under Midway's Chapter 7 bankruptcy proceeding.

The bid has been approved by the court, but the deal itself is subject to a final court order.

The assets include Midway's operating certificate, six leased CRJ aircraft including Midway's right to three additional leased aircraft and two owned CRJ aircraft, all of Midway's CRJ spare parts and support equipment, all aircraft landing and takeoff slots at New York LaGuardia and Washington National airports, and all related acquisition materials associated with the operation of Midway's CRJ operations, according to a news release.

"The assets of Midway Airlines will be placed into service under long-term revenue-guarantee contracts with our airline partners, significantly enhancing our growth in 2004. With our competitive, low cost structure and our tremendous employees, these assets will provide excellent service to our airline partners and are anticipated to earn meaningful returns for our shareholders," said Jonathan Ornstein, Mesa's chairman and chief executive officer.

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