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Midwest Airlines cuts work force by 40 percent

MILWAUKEE (AP) — Midwest Airlines said on Monday it will reduce its workforce by 1,200 people as it grounds its 12 MD-80s.

The cuts represent about 40 percent of current staffing at Midwest and its Skyway subsidiary. Besides the MD-80s — which it’s flying until this fall — Midwest also flies 25 Boeing 717s.

“In order to successfully restructure, there is no way to avoid deep and painful reductions to our current work force,” said Timothy E. Hoeksema, chairman and chief executive, in a statement.

The company said it would begin notifying affected employees Monday, with most jobs ended by mid-September. The job cuts will include unionized pilots and flight attendants, said Michael Brophy, a spokesman for Oak Creek, Wis.-based Midwest Air Group Inc.

Brophy also said Midwest is continuing talks with unions for pilots and flight attendants to reach deals on concessions to reduce the airline’s costs.

“We need some fairly meaningful and significant concsessions from each group,” he said. “We’re making some progress but we need more progress.”

Like other airlines, Midwest has been hurt by soaring fuel costs.

Private equity firm TPG Capital in January completed its roughly $450 million acquisition of Midwest Air Group Inc. and paid 53 percent of the purchase price. Northwest Airlines Corp. owns the rest.