Midway Airlines
Midway Airlines is an example of an airline that has recently fallen into bad times, partly because of the increased competition in the airline industry and partly because of the conditions of the airline industry. For those who have the desire to know about the airline industry and its many perils, Midway Airlines can be a good case study.

In the beginning, there were two Midway Airline companies. The original Midway Airlines was founded in 1976 by Irving T. Tague. Based in Chicago, it was originally a discount carrier, much like Southwest Airlines. It was known for its low fares, it serviced routes to Cleveland, Kansas City, and Detroit. Growth came rapidly in the next decade. Midway Airlines became known not only for its low fares, but for its friendly employees and customer-orientation. Many Chicago residents became fiercely loyal to their city’s airline.

What caused Midway Airlines’ downfall was the rapid increase in oil prices during the Persian Gulf War. The strain on the company’s resources was simply too great, and it filed for bankruptcy soon thereafter. The entire bankruptcy process was completed in early 2005.

The second incarnation of Midway Airlines was based in Morrisville, North Carolina. Like the original Midway, it grew rapidly from its inception in 1993 until the turn of the century. It dominated the Washington National Airport and flew almost 200 flights daily. However, when the 2001 tech bubble burst, the company was hit hard and had to lay off thousands of employees overnight. While it continued to fly on a limited basis through outside help, it would soon enter bankruptcy, because of the effect the September 11, 2001 attacks.

The story of Midway Airlines shows us that the airline industry is a very tough one. Even those airlines which seem to be very prosperous are prone to a downturn in the economy, or perhaps an unforeseen event such as a terrorist attack. Also, the influx of competitors and the use of price-cutting strategies has made it very hard for airlines to earn a decent return on the money that they invest.