=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/07/17/n= ational0910EDT0528.DTL ---------------------------------------------------------------------- Thursday, July 17, 2003 (AP) Midwest Airlines avoids bankruptcy after reaching concessions with workers,= creditors KEVIN ORLAND, Associated Press Writer (07-17) 06:10 PDT MILWAUKEE (AP) -- Midwest Airlines has averted a bankruptcy filing as employees and creditors consented to concessions the company demanded. Midwest can now pursue new financing after lenders allowed the airline to restructure $60 million to $70 million in debt, Midwest senior vice president and general counsel Carol Skornicka said late Wednesday after a company board meeting. Executives of parent Midwest Express Holdings Inc. said last month the company would be forced to file for Chapter 11 bankruptcy without concessions from employees and 11 aircraft lessors. Like most airlines, Midwest has struggled because of a drop in tourism since the 2001 terrorist attacks and a generally weak economy for air travel, especially among higher-paying business customers. Midwest earned its reputation catering to business travelers looking for extra comforts. But in May the company said it would follow the lead of competitors and launch a low-fare service this summer to cater to vacationers seeking bargains. Michael Boyd, an airline industry analyst with the Boyd Group in Evergreen, Colo., said Midwest's ability to renegotiate its debt shows the company's lenders and lessors have faith in its plan to change from a primarily business-class airline to a lower-frills coach carrier. "It clearly is a strong endorsement of a well-run airline that got into difficulty through no fault of its own," Boyd said. The suburban Milwaukee-based airline had sought savings from employees through wage reductions, work rule changes and productivity improvements. Two pilots groups and the flight attendants' union approved packages of concessions Tuesday. The airline's mechanics and ground crew aren't unionized. The company also secured agreements to reduce debt and lease payments on its airplanes. "We are definitely out of the woods in a major, major part of re-establishing our profitability for the future," Skornicka said. Midwest Airlines and subsidiary Midwest Connect serve a combined 37 citi= es with 280 flights each weekday and an average 8,000 daily passengers. Midwest and Midwest Connect have 2,800 employees. On the Net: www.midwestexpress.com =20 ---------------------------------------------------------------------- Copyright 2003 AP