Midway Airlines gets Robert R. Ferguson as new chief
Feb. 11, 1997
DURHAM, N.C. (AP) _ Robert R. Ferguson, who led Continental Airlines through its second bankruptcy reorganization, was named Tuesday as president and chief executive officer of financially struggling Midway Airlines.
Midway has lost money since taking over American Airlines' former hub in Durham in March 1995. Through September, Midway lost more than $5.8 million.
Ferguson, a respected airline veteran, headed Continental for three years before resigning abruptly in late 1994 in the midst of disappointing financial results.
He said his objective was to capitalize on Midway's base in Durham and to build the airline's profitability so that it could grow.
Ferguson, 47, replaces John Selvaggio as Midway's president and chief executive officer. He also was named chairman of the board.
Also Tuesday, the airline announced completion of a $22 million cash infusion led by James H. Goodnight, owner of the software company SAS Institute Inc. Goodnight and his associates are the controlling shareholders of Midway.
``Midway Airlines has a strong reputation for quality and service, and this investment will renew the financial stability of the airline,'' Goodnight said in a statement.
Midway offers 36 daily flights to 14 cities from Raleigh-Durham International Airport.
Midway, which takes its name from Midway Airport on Chicago's Southwest Side, is in its second incarnation. The first airline named Midway went out of business in 1991.
Investors bought the rights to Midway's name in November 1993. Chicago financier Sam Zell then bought 90 percent of the airline for $25 million in July 1994.