Midway Airlines shut down today. Again. Their Sept. 11 government bailout money has been spent. What’s next?

They want to hook up with US Airways and operate as an express regional for them. US Airways is some alliance partner. They just applied for and looks like they will get a government loan for 900 million. All they gotta do is stay out of Chapter 11 until the money arrives. Meanwhile they are bleeding 1 million per day. They recognize and publicly admit that something has to change and they can’t keep going like this.

Keeping this in mind, Midway has to find (re)startup capital and secure long term leases for a fleet of expensive regional jets and (re)convince a workforce that has been *had* twice already to stick around and of course promise any customers that their tickets will be good on travel day and line up the usual vendors who have been burned already and… If I was a lender I would have to say to this opportunity: don’t walk but RUN away!