Monday, December 21, 2009

Republic CEO Comments on Milwaukee

Heh.

A public firestorm developed after The Business Journal Serving Greater Milwaukee reported in its Friday print and Web editions comments made by Bedford at the Next Generation Equity Research Airlines Conference in New York City on Dec. 9.

“Milwaukee is not a destination market by price. I don’t care how cheap you make it, you don’t go there unless you have to,” Bedford told a group of what he described as longtime airline industry investors and analysts.

Bedford also told the group that Milwaukee-area travelers are willing to pay more to book a flight on Oak Creek-based Midwest Airlines. Republic, which has its headquarters in Indianapolis, purchased Midwest in July for $31 million.

“We have 1.1 million frequent fliers in Milwaukee and they will pay a premium to fly on Midwest,” he said. “They love that cookie.”

Couple of thoughts…

He is correct in that most people don’t fly to Milwaukee unless they have to for business or to see family.  Sorry, but it’s true.  It’s also true for many other cities.  Except for Summerfest and a couple of other events, most people don’t sit down to plan a vacation and settle on Milwaukee. I don’t see that changing any time soon. 

I happen to be one of those frequesnt business travellers and I fly Midwest/Republic a fair amount.  I don’t give a crap about the cookie.  I can buy my own 10 cent cookie, thankyouverymuch.  I look for the best flight at the lowest fare.  Period.  I prefer direct flights on smaller planes, but that’s just me.  I will pay a little more for a better seat, but not just to fly on an Indianapolis-based airline and a cookie.

(12) Comments
Posted by Owen at 1711 hrs
Culture + Economy + Off-Duty + Technology

  1. Funny that a guy living in Indianapolis rips on Milwaukee.  He is right, though - it’s not like tourists are going out of their way to fly to MKE.

    Posted by .(JavaScript must be enabled to view this email address) on December 21, 2009 at 1757 hrs


  2. Milwaukee will continue to lose business and population due to high Taxes and climate.

    Posted by .(JavaScript must be enabled to view this email address) on December 21, 2009 at 1841 hrs


  3. I chose to fly Midwest for one reason, service.  You talk to a real person at the counter who actually is able to do things.  They do a great job.

    I have not flown Midwest since the take over by Republic and I hope that level of service remains high.  I frequently use Midwest as an example to my employees on how to make the customer happy. 

    As for Mr Bedford’s comments about Milwaukee, he is correct.  Sorry Milwaukee.

    Posted by .(JavaScript must be enabled to view this email address) on December 21, 2009 at 1940 hrs


  4. kay,

    The service isn’t anything special anymore.  I’ve flown most of the major airlines over the past couple of years.  Nothing stands out about Midwest’s service - even for a frequent flier.  There’s really nothing to distinguish them anymore than memories and wishful thinking.

    Posted by Owen on December 21, 2009 at 2116 hrs


  5. How sad then.  They were a gem.

    Posted by .(JavaScript must be enabled to view this email address) on December 21, 2009 at 2152 hrs


  6. Agreed.

    Posted by Owen on December 21, 2009 at 2200 hrs


  7. “Hey…I have a weeks’ vacation!  Let’s go spend it in Milwaukee!”

    That even sounds absurd.  And I grew up here.

    Posted by Steve on December 21, 2009 at 2204 hrs


  8. It is sad. I loved Midwest - MME, if you know what I mean.
    Only memories remain. My new love is Airtran.
    Assuming that Milwaukee does repel people, that should mean more people wanting the fly out of here.
    And, of course, airlines live on business travel and we do have a couple of business destinations here.

    Posted by Charlie Hillman on December 21, 2009 at 2320 hrs


  9. Which just re-enforces what he said. You don’t come here unless you have to (ie., for business).

    Indianapolis has a lot more going on than Milwaukee does. In fact, I think the two cities are very interesting when you compare them. They were both about the same 25 years ago. Look at where Indianapolis is now compared to Milwaukee. And if you haven’t been there in awhile - you should.

    Posted by .(JavaScript must be enabled to view this email address) on December 21, 2009 at 2341 hrs


  10. Hmmm, could the difference between Indianapolis and Milwaukee be because their Mayor is a Republican and Barrett’s a Liberal? Just wondering.

    Posted by .(JavaScript must be enabled to view this email address) on December 22, 2009 at 0054 hrs


  11. Scott- Probably not, the mayor in Indy prior to the current one was a Democrat and he was there for several terms.

    Posted by .(JavaScript must be enabled to view this email address) on December 22, 2009 at 1115 hrs


  12. Living in a city that’s not a tourist destination is nothing to be ashamed of. We can’t all be like Orlando or Las Vegas. Milwaukee isn’t likely to be a tourist destination any time soon (neither will Indianapolis). It would be nice to have a more vibrant business climate, like in Indy, however.

    It is surprising to see the CEO of Republic insult his primary customers, essentially saying we’re a bunch of rubes with cookie crumbs on our faces and shirts. It will be interesting to see how this plays out, as Airtran and Southwest make more inroads here.

    Posted by .(JavaScript must be enabled to view this email address) on December 22, 2009 at 1422 hrs


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