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The Daily Tar Heel

Midway Slated to Resume Operations in the Triangle

Congressional legislation assisting airlines will fund Midway Airlines' renewed operations, despite the company's August bankruptcy claim.

The Raleigh-based airline plans to return to the skies Dec. 19, airport officials say.

The bailout is possible because of the federal Air Transportation and Stabilization Act, which provides $15 billion in assistance to airlines. Congress passed the act to help airlines rebound from plummeting revenues after the Sept. 11 attacks.

Midway CEO Robert Ferguson announced the airline's return last week. He said "hopefully it will be a plus."

Midway filed for Chapter 11 bankruptcy Aug. 13 and laid off 2,400 workers between then and Sept. 12, when it closed its doors.

Michael Walden, professor of economics at N.C. State University, said there will be a two-fold economic impact for the Triangle when Midway returns.

Walden said the local airline will rehire some of its employees, who will spend part of their salaries in the Triangle. He also said Midway's returning service will prompt more people to buy airline tickets, although he added that people do not necessarily choose their airline based on its headquarters' location.

Rep. David Price, D-N.C., has worked with other legislators to get funding for Midway.

"Obviously he feels that it provides a needed boost to the economy," said Bridget Lowell, Price's press representative. "Anything that puts people back to work is a good thing."

Midway is projected to begin operating four Boeing 737s out of Raleigh-Durham International Airport beginning Dec. 19. Two more planes will be added in March.

RDU spokeswoman Mindy Hamlin said to resume operations, Midway has to have its planes reinspected and its employees must be recertified for security and safety purposes.

Mirinda Kossoff, RDU communications manager, said Midway will not operate at its previous capacity. "They've trimmed down significantly," she said. "We're glad they're able to come back in any form or fashion."

Kossoff said other airlines recently started to fill the void left by Midway. "It's just a matter of Midway plugging back in."

But Malden says Midway might face difficulties in resuming operations.

"I don't think people are loyal to an airline because it's a local airline," Walden said. "People pick an airline because it fits their travel plans."

Walden also said that after the airline's experience with bankruptcy, Midway might change its strategy upon returning to business.

"Midway expanded very rapidly and rode the good economy of the late '90s." he said. "They probably realized they'd taken on more than they could chew. They are definitely going to take baby steps and crawl before they can walk or even run."

The State & National Editor can be reached at stntdesk@unc.edu.

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