Midway Airlines Ends Operations

Midway Airlines, the nation’s 12th-largest airline, announced late Wednesday that it was ceasing operations. The announcement came hours after Northwest Airlines said it had scrapped plans to buy Midway.

Chicago-based Midway said it would shut down at midnight Wednesday.

The airline operates five daily flights from Los Angeles International Airport to Chicago.

Earlier, Northwest Airlines said it would not buy Midway because the carrier provided false information about past business.

Northwest spokesman Mark Abels said that since his carrier was misled by Midway on its 1990 traffic and revenue, Northwest underestimated by $35 million the amount it would cost to run the airline each year.

In a statement, Midway said: “As a result of Northwest Airlines’ unilateral decision to withdraw from its commitment to acquire substantially all of Midway’s assets, effective midnight, Wednesday, Nov. 13, Midway will cease operations.”

A recording on Midway’s reservations phone line advised ticket holders to contact their travel and credit agencies.

“Midway deeply regrets the inconvenience caused to our loyal customers by the cancellation of all Midway service,” the recording said.

Sandra Allen, a Midway spokeswoman, said flights leaving before midnight would take off as scheduled. She did not know how many flights would be affected.

Midway Chairman David R. Hinson had disputed the allegation that his company provided false information, saying that Northwest had “refused to negotiate in good faith and in a timely manner.” Hinson said Midway was “shocked and disappointed” by Northwest’s decision to scrap the deal.

The $153-million purchase had been approved last month by a judge overseeing Midway’s Chapter 11 reorganization in federal bankruptcy court.

Northwest, the fourth-largest U.S. airline, had viewed a purchase of Midway as an affordable way to expand as it tries to keep pace with the air travel industry’s fast-growing leaders, American, United and Delta.