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Midway Deal Gets Preliminary OK

August 8, 2002

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MORRISVILLE, N.C. (AP) _ The U.S. Bankruptcy Court has given preliminary approval to Midway Airlines’ plan to operate as a commuter affiliate of US Airways.

Midway, which grounded its fleet July 17, still must get a $5 million loan and find five jets before it can begin flying as US Airways Express. But Tuesday’s approval from bankruptcy Judge A. Thomas Small was a major step in the Morrisville carrier’s reorganization plan.

Last month, Midway and US Airways announced an agreement for Midway to become a regional feeder for the nation’s seventh-largest airline. Midway would continue to fly its own jets but US Airways would handle marketing, reservations, ground support and fuel.

The deal still needs final approval from the court. A hearing is scheduled for Aug. 19 to finalize the deal.

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