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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 14, 1999
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MIDWAY AIRLINES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
000-23447 36-3915637
(Commission File Number) (IRS Employer
Identification No.)
2801 Slater Road, Suite 200 27560
Morrisville, North Carolina (Zip Code)
(Address of principal executive offices)
(919) 595-6000
(Registrant's telephone number, including area code)
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Item 5. Other Events.
On June 14, 1999 Midway Airlines Corporation (the "Company") placed
firm orders to purchase fifteen (15) Boeing 737-700 aircraft with options to
acquire up to ten (10) additional Boeing 737-700 aircraft. On June 14, 1999 the
Company also announced its intention to lease two (2) Boeing 737-700 aircraft
from GE Capital Aviation Services.
In connection with the purchase and lease of the Boeing 737-700
aircraft, the Company issued the press release filed herewith as Exhibit 99.
On June 22, 1999, the Company was served a summons and a complaint in a
case entitled First Security Bank, National Association against Midway Airlines,
Inc., filed in the United States District Court Southern District of New York.
The complaint includes a breach of contract claim and an unjust enrichment claim
and alleges damages in excess of $5,000,000 under each claim. The claims relate
to the matters described in the Company's Annual Report on Form 10-K,
under Part II, Item 7 entitled CONTINGENCIES. The Company believes it has
meritorious defenses to such claims and intends to either reach satisfactory
settlements with respect to the claims or to vigorously defend the claims.
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Item 7. FINANCIAL STATEMENTS , PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99 Press release, dated June 14, 1999
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Exhibit 99.
FOR IMMEDIATE RELEASE
Media Contact:
Mark J. Coleman
Senior Vice President - Marketing & Sales
(919) 595-6005
MIDWAY AIRLINES TO ACQUIRE 737-700 AIRCRAFT
17 FIRM ORDERS PLUS 10 OPTIONS
RALEIGH-DURHAM, N.C. - June 14, 1999 - Midway Airlines (Nasdaq: MDWY)
today announced placement of firm orders with The Boeing Company for 15 737-700
aircraft along with options to acquire another 10. In addition to the aircraft
being acquired directly from Boeing, Midway will lease two 737-700s from GE
Capital Aviation Services. The initial delivery is scheduled for December 1999,
with four aircraft scheduled for delivery in 2000, seven in 2001 and five in
2002.
The new aircraft will be used to add capacity in major markets already
served by Midway and are expected to materially reduce Midway's average cost per
seat mile flown. Robert Ferguson, Midway's president and chief executive officer
said, "Strong traffic fueled by dramatic growth in the local Raleigh-Durham
market combined with great geography for connecting service along the eastern
seaboard require Midway to respond with added capacity and lower costs." He
continued, "Not only is the 737 the most popular aircraft ever built, it is one
of the most efficient. The 737-700 will compliment our smaller Canadair Regional
Jets and F-100 aircraft allowing us to take full advantage of our 20 gates at
Raleigh-Durham."
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Midway currently operates a jet fleet of 8 Fokker F-100's and 12
Candadair Regional Jets to offer more than 130 daily flights to 25 destinations
in 14 states and the District of Columbia. With an average age of less than
three years, Midway's fleet is among the youngest in the world.
Steven Westberg, Midway's chief financial officer said, "We estimate
our total cost per 737-700 flight will be about the same as an F-100, thus
gaining us the equivalent of 30 free seats per trip. That magnitude of reduction
in cost per seat will position us well to compete effectively in our East Coast
markets."
Midway Airlines offers exceptional Carolina Class(R) in-flight service,
including assigned seating, AAdvantage(R) Frequent Flyer miles, friendly flight
attendants, leather seats, gourmet coffee, hot towel and mint service, and one
of the best on-time arrival records in the industry. Travelers can obtain
additional information about Midway Airlines by visiting the Company's web site
at www.midwayair.com.
Comments made in this release regarding Midway Airlines' business,
which are not historical facts, are "forward-looking statements." Such
statements, such as comments on aircraft deliveries and operating costs, involve
risks and uncertainties that could cause actual results to differ from those
contained in the forward-looking statements. A discussion of such risks and
uncertainties is provided in the Company's 1998 report on Form 10K.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MIDWAY AIRLINES CORPORATION
By: /s/ Jonathan S. Waller
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Dated: June 25, 1999 Jonathan S. Waller
Senior Vice President
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