Midway Airlines (1976–1991)

Midway Airlines was an airline in the United States based in Chicago, Illinois. It was incorporated on October 13, 1976, by Kenneth T. Carlson, Irving T. Tague and William B. Owens, filing with the Civil Aeronautics Board (CAB) for an airline operating certificate. Although it received its operating certificate from the CAB prior to the passage of the Airline Deregulation Act in 1978, it was viewed as the first post-deregulation start-up. The airline commenced operations on November 1, 1979.

The airline was notable for breathing new life into Midway International Airport, then called Chicago Midway Airport, which was almost deserted when Midway started operations. The carrier was also notable for pursuing at least three distinct business models during its life, starting as a discount carrier, moving to an all business-class airline before ending its life as a more conventional hub carrier.

Midway was never highly or consistently profitable, but unlike many bigger and/or more prominent airlines (e.g. Braniff, People Express, Western Airlines and Piedmont Airlines) which disappeared through bankruptcy or mergers, it survived the 1980s. Unfortunately, the carrier perished soon after attempting to grow substantially by purchasing the Philadelphia hub of bankrupt Eastern Air Lines. This led directly to Midway’s March 1991 Chapter 11 filing. A deal was struck to sell the company, still operating in bankruptcy, to Northwest Airlines, which backed out at the last minute, leaving Midway dead in November 1991.

A group of investors, including Carlson, bought the airline's name (for $20,000) and started another Midway Airlines, which flew from 1993 to 2003.