Midwest Express to defer delivery of Embraer jets

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MILWAUKEE, March 12 (Reuters) - Midwest Express Holdings Inc. (MEH) on
Tuesday said it will defer delivery of Embraer regional jets to its Skyway
Airlines unit by a year, in a move to focus on new planes for its Midwest
Express Airlines unit.

Given current airline industry weakness, it is not prudent for Midwest
Express to start two new aircraft programs at the same time, the carrier
said in a statement. Deferring the Embraer deliveries will allow the company
to focus on Boeing Co. (BA) 717 deliveries for its Midwest Express unit
planned to start in February 2003, Midwest Express said.

The carrier said it now plans to take delivery of Embraer (EMBR4) (ERJ)
regional jets at a rate of about one every other month starting in January
2004 for Skyway.

The carrier also said that Midwest Express Airlines' load factor, or
percentage of capacity in use, rose to 61.3 percent in February from 57.2
percent a year earlier, on decreased traffic and capacity following the
Sept. 11 attacks.

The airline's traffic, measured in revenue passenger miles, decreased 6.8
percent in February from a year earlier and capacity, measured in scheduled
available seat miles, fell 13 percent.


©2002 Reuters Limited.

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