Midwest Airlines adds K.C. nonstop service

Midwest Airlines said Friday it was adding new nonstop service between Kansas City, Mo., and two other cities, Boston and Los Angeles.

The Milwaukee-based airline said the new service would begin May 1, with one daily roundtrip flight between Kansas City and Boston and two between Kansas City and Los Angeles. The service between Kansas City and Orange County, Calif., is being discontinued.

The airline also said it would increase the number of flights between Kansas City and Milwaukee to six a day and between Kansas City and New York’s LaGuardia Airport to three a day. Meanwhile, the seasonal flights Midwest has been providing between Kansas City and Fort Lauderdale, Fla., and Kansas City and New Orleans will change to year-round service.

Aviation

Icelandair orders 787s

Icelandair said Friday it would order two of Boeing Co.’s new 787 airplanes as part of plans to expand its long-range routes from Iceland.

The order for the 787-8 model airplanes is valued at $240 million at list prices, although airlines often get a substantial discount. The airplanes are to be delivered in 2010, two years after the fuel-efficient, twin-aisle jet is to enter service.

Including Friday’s deal, Boeing spokeswoman Yvonne Leach said the company had logged 64 firm orders for the 787, previously called the 7E7. The Chicago-based company also has announced another 129 tentative commitments for the airplanes.

Icelandair is a subsidiary of Flugleider Icelandair Group, which includes various tourism-related businesses.

Telecommunications

MCI executive calls Verizon ‘right partner’

MCI Inc., the telecommunications company that is the target of two competing acquisition bids, swung to a loss of $32 million in the fourth quarter of 2004, but reported an operating profit. Its revenue fell and it forecast more declines in 2005.

MCI chief executive Michael Capellas told analysts and investors Friday that the MCI board had concluded accepting a buyout offer from Verizon Communications Inc. despite a higher offer from Qwest Communications International Inc. that Verizon “is the right partner … to deliver long-term shareholder value.”

On Thursday, Qwest made a revised offer for MCI, which said it would consider the bid.

Asked whether he has enough shareholder support to get the Verizon deal approved, Capellas said in the conference call Friday, “We will do our utmost to drive it through. We entered into it. We believe in it. At the same time we’ll do our fiduciary duty” to fully evaluate Qwest’s latest offer.