USA Today outlines the horrible situation Midwest finds itself in, including having the CEO say that they have about 30 days before they run out of cash. Worse than the elimination of about half their jets is the request for workers to cut pay by up to 2/3 for pilots, with some $120,000-a-year pilots being asked to take a cut to the low $30s. For now, the unions are refusing.
Northwest is a passive investor in the airline and while they deny they will let Midwest disappear while taking over their routes, that seems to be the most likely scenario. AirTran, which unsuccessfully tried to buy the airline last year (sometimes when you lose you win) may benefit as they’ll be able to expand in Milwaukee without having to deal with actually running Midwest.