Midwest Airlines to Reconfigure Fleet

Midwest Airlines said Tuesday it will reconfigure its fleet to offer both two-by-two seating and two-by-three seating on its flights.

Parent Midwest Air Group (amex: MEH - news - people ) Inc. said the moves could boost annual revenue by $30 million to $35 million, while also reducing unit costs by increasing capacity.

It is the latest step in the company's strategic plan, which it contends offers shareholders more value than a takeover bid extended by rival AirTran Holdings (nyse: AAI - news - people ) Inc. Midwest Air's board has repeatedly rebuffed AirTran's advances.

Midwest's two-by-two seats, branded under the Signature name, have more room and generally are more expensive than the two-by-three seats, branded under the Saver name.

Under the new seating configuration, Midwest said its fleet of Boeing (nyse: BA - news - people ) 717 jets will have 40 Signature seats and 59 Saver seats by mid-2008. The planes currently have only 88 Signature seats.

Its MD-80 plane will have 12 Signature seats and 132 Saver seats by this fall, compared with its current configuration of 147 Saver seats. The MD-80 fleet generally flies longer-distance routes to more leisure oriented destinations.

Shares of Midwest Air Group rose 15 cents to $15.07 Tuesday.