Midway Airlines Ceases Operations Following Terrorist Attacks

September 17, 2001

Midway Airlines announced that effective immediately it has suspended all future flight operations. This action is being taken at this time in order to preserve the value available for Midway’s interest holders and with the recognition that following the recent terrorist attacks demand for air transportation is expected to decline sharply.

Holders of tickets for future travel on Midway will be entitled to refunds or recommendation on other air carriers. Midway will attempt to contact all such ticket holders to make appropriate arrangements.

Approximately 1,700 Midway employees will lose their jobs as a result of this suspension of operations. Final pay will be made to these individuals on their next regularly scheduled payday.

Effective immediately, Midway will begin returning aircraft to their lessors and will solicit purchasers for the various assets it own or controls. Midway anticipates paying all obligations incurred following its Chapter 11 filing and proposing a Plan of Reorganization to deal with all obligations which arose prior to the Chapter 11 filing.

A Midway spokesperson commented, “We are deeply troubled by the impact this action will have on our customers, employees, creditors and community. Unfortunately, we simply do not have the resources necessary to permit us to reorganize in this environment.”

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