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Airtran Raising $225 Mil.  
User currently offlineQuickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Posted (9 years 1 month 4 days 1 hour ago) and read 3657 times:

That's a fair amount of cash considering you already have $350 mil + already. Any thoughts about it's use?

http://yahoo.reuters.com/financeQuot...05-08-16_20-30-05_wbt003704_newsml

46 replies: All unread, showing first 25:
 
User currently offlineIndy From United States of America, joined Jan 2005, 4562 posts, RR: 18
Reply 1, posted (9 years 1 month 4 days ago) and read 3625 times:

"It said it may use the proceeds for general corporate purposes, which may include the debt retirement, working capital, capital spending, acquisitions of other airlines or their assets, strategic alliances, code-share agreements or other business arrangements."

Sounds like it can be used for just about anything. Never hurts to have a little extra cash. Also it can raise UP TO that amount. Doesn't mean they are going to sell any additional shares or all of them. They can just go up to that number.



Indy = Indianapolis and not Independence Air
User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Reply 2, posted (9 years 1 month 4 days ago) and read 3593 times:

Who's to say that they won't use the money to prepare for a hostile takeover of Delta Air Lines? After all, isn't $225 mil about what the outstanding shares of Delta stock are worth?  Wink

[Edited 2005-08-16 23:03:21]


Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineIndy From United States of America, joined Jan 2005, 4562 posts, RR: 18
Reply 3, posted (9 years 1 month 4 days ago) and read 3564 times:

They could buy Delta and still have $200 mil left over  Smile


Indy = Indianapolis and not Independence Air
User currently offlineTornado82 From , joined Dec 1969, posts, RR:
Reply 4, posted (9 years 1 month 4 days ago) and read 3489 times:

Considering what Delta just sold ASA for, doubtful. Maybe something like FlyI though?

User currently offlineAirTran737 From United States of America, joined Apr 2004, 3704 posts, RR: 12
Reply 5, posted (9 years 1 month 4 days ago) and read 3462 times:
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ahem.....Midwest....cough Airlines.....cough..........





We don't want Indy, and airline of CRJ's and Airbi is of no use to us.



Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offlineTornado82 From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 1 month 3 days 23 hours ago) and read 3440 times:

Quoting AirTran737 (Reply 5):
ahem.....Midwest....cough Airlines.....cough..........





We don't want Indy, and airline of CRJ's and Airbi is of no use to us.

I thought of both those points. It would probably take significantly more money than that to buy up Midwest. Indy's CRJ's aren't owned anyways... but their IAD facilities are, supposedly.


User currently offlineAirTran737 From United States of America, joined Apr 2004, 3704 posts, RR: 12
Reply 7, posted (9 years 1 month 3 days 23 hours ago) and read 3432 times:
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http://finance.yahoo.com/q?s=meh

Currently YX has a market cap of 41.28 million, not to expensive for an airline with 40 or so airplanes.



Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offlineQuickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Reply 8, posted (9 years 1 month 3 days 20 hours ago) and read 3275 times:

Midwest and FL fares are almost identical but with FL using 117 seat configuration compared to 80 or so on the same Midwest jet, I think Midwest would be a perfect fit. FL's 3x2 seating plus their cost structure would probably mean a profit from day one.

User currently offlineSideflare75 From United States of America, joined May 2005, 613 posts, RR: 1
Reply 9, posted (9 years 1 month 3 days 18 hours ago) and read 3169 times:

Quoting AirTran737 (Reply 5):
ahem.....Midwest....cough Airlines.....cough..........



Quoting AirTran737 (Reply 7):
Currently YX has a market cap of 41.28 million, not to expensive for an airline with 40 or so airplanes.

So why on earth would you need to raise up to 225 million, when you already have 350 million, to buy an airline worth 42 million????

Still reaching for reasons for this merger that you have all but guaranteed?
I knew when I saw this news you would be posting this somewhere. I suppose next you are going to tell us you saw Joe in MKE with his checkbook in his hand.


User currently offlineAirTran737 From United States of America, joined Apr 2004, 3704 posts, RR: 12
Reply 10, posted (9 years 1 month 3 days 18 hours ago) and read 3155 times:
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Quoting Sideflare75 (Reply 9):
So why on earth would you need to raise up to 225 million, when you already have 350 million, to buy an airline worth 42 million????

Maybe to re-finance and pay off some debt that YX has.

Quoting Sideflare75 (Reply 9):
I suppose next you are going to tell us you saw Joe in MKE with his checkbook in his hand.

No I'm not going to say that, Timmy wouldn't take a check, he gets funny money. But the next time Joe , or one of the big boys are here I will be sure to let you know. There is something brewing between FL and YX. I know all of the YX diehards will cry about losing their brand, but it is that very brand that is sinking YX. I'm pretty sure you work for YX, wander into ops and have them pull the names on your MCO-MKE flights, I'm sure you will see an AirTran exec on the manifest from time to time.



Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offlineQuickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Reply 11, posted (9 years 1 month 3 days 8 hours ago) and read 3034 times:

I'm not sure that fuel is the issue it was 6 mos. ago because many carriers have been able to pass on fare hikes recently that wouldn't have stuck a year ago and the planes are still running full. If FL senses that there is about to be a large reduction in capacity somewhere, perhaps aquiring the YX 717s might be a way to ramp things up quickly and cheaply. I can't think of any other airline beating down the door to aquire 717s, so this could be a bargain for FL.

The other issue is MKE. I'm not so certain that FL would necessarly leave all those 717s operating out of MKE if something were to happen. FL hasn't been overly successful in MKE to date and offer alot less capacity there than they used to. They would still be a factor up there, but I think they are making more money elsewhere in the system that could use more lift (SRQ, IND, CLT, LAS, etc).


User currently offlineTornado82 From , joined Dec 1969, posts, RR:
Reply 12, posted (9 years 1 month 3 days 7 hours ago) and read 2986 times:

Quoting Quickmover (Reply 11):
LAS

Where all can a 717 make it within the FL system from LAS? Not too many stations, correct?


User currently offlineQuickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Reply 13, posted (9 years 1 month 3 days 6 hours ago) and read 2934 times:

"Where all can a 717 make it within the FL system from LAS? Not too many stations, correct?"


They fly them to DFW, but what I meant was that additional 717s could be used to free up 737s operating on the east coast. Those 737-700s could be used better on long hauls to Vegas and the west.


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 14, posted (9 years 1 month 3 days 6 hours ago) and read 2905 times:

Rumors have been circulating for months about a merger, but with fuel skyrocketing and being such a capital intense business, it makes more sense for them to have it available for operational purposes that to buy a lame duck.


One Nation Under God
User currently offlineLuv2fly From United States of America, joined May 2003, 12110 posts, RR: 48
Reply 15, posted (9 years 1 month 3 days 3 hours ago) and read 2803 times:
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Quoting DAYflyer (Reply 14):
Rumors have been circulating for months about a merger, but with fuel skyrocketing and being such a capital intense business, it makes more sense for them to have it available for operational purposes that to buy a lame duck.

I have to agree. They could just wait them out and then pick up the pieces after the fact.



You can cut the irony with a knife
User currently offlineQuickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Reply 16, posted (9 years 1 month 3 days 3 hours ago) and read 2784 times:

"I have to agree. They could just wait them out and then pick up the pieces after the fact."


That strategy didn't work too well when FL tried to pick up pieces at ATA. I don't know if there are any bargains to be had at a bankruptcy auction. Bankruptcy seems to bring buyers out of the woodwork that wouldn't have been there otherwise often paying more than they should just to keep a competitor from grabbing the asset.


User currently offlineMidway2airtran From United States of America, joined Jul 2003, 864 posts, RR: 2
Reply 17, posted (9 years 1 month 3 days 3 hours ago) and read 2760 times:

The money can be used for anything, this might be a way of adding to the resources to compete better with DL should they emerge stronger from the possible bankruptcy filing. Increased fuel hedging too? Maybe just simple route expansion.

On the note of mergers it would probably have to be somebody larger than a Midwest or Indy to benefit from the consolidation, also keep in mind HP-US and other possibilities in the industry. To compete with these larger carriers under better cost structures it may benefit FL to be larger. To stir things up more, there is always a possibility for a merger or alliance with a legacy?

On the Midwest note, what would both gain from each other? If FL takes the B717's, then why will YX still be flying their more expensive a/c to operate?



"Life is short, but your delay in ATL is not."
User currently offlineBoeing7E7 From , joined Dec 1969, posts, RR:
Reply 18, posted (9 years 1 month 3 days 3 hours ago) and read 2751 times:

Quoting AirTran737 (Reply 5):
ahem.....Midwest....cough Airlines.....cough..........

ahem... crack...cough...crack....ahem...


User currently offlineTravatl From United States of America, joined Mar 2001, 2173 posts, RR: 7
Reply 19, posted (9 years 1 month 3 days 1 hour ago) and read 2665 times:

I've said it before, I'll say it again.... the airline that "something's brewing with" is much further to the west than YX.

Travis


User currently offlineAirTran737 From United States of America, joined Apr 2004, 3704 posts, RR: 12
Reply 20, posted (9 years 1 month 3 days 1 hour ago) and read 2656 times:
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Maybe we're going to use the 225 million to build an oil refinery, that we we can have a fuel cost that is even lower that WN's I know that it isn't going to happen, but we can all dream.


Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Reply 21, posted (9 years 1 month 3 days 1 hour ago) and read 2645 times:

Quoting AirTran737 (Reply 20):
Maybe we're going to use the 225 million to build an oil refinery, that we we can have a fuel cost that is even lower that WN's

AirTran-Now THAT is the best idea I've heard yet! Why doesn't EVERY airline do that?



Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineMariner From New Zealand, joined Nov 2001, 25253 posts, RR: 85
Reply 22, posted (9 years 1 month 3 days 1 hour ago) and read 2645 times:
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Quoting Travatl (Reply 19):
the airline that "something's brewing with" is much further to the west than YX.

You mean as a code share, right?

cheers

mariner



aeternum nauta
User currently offlineTornado82 From , joined Dec 1969, posts, RR:
Reply 23, posted (9 years 1 month 3 days 1 hour ago) and read 2643 times:

Quoting AirTran737 (Reply 20):
Maybe we're going to use the 225 million to build an oil refinery, that we we can have a fuel cost that is even lower that WN's I know that it isn't going to happen, but we can all dream.

Actually as low as WN is hedged... no you wouldn't. The crude is still costing $63+ out of the ground right now. And until you'd build it.. WN's hedging is gone.


User currently offlineSBN580 From United States of America, joined Mar 2005, 401 posts, RR: 3
Reply 24, posted (9 years 1 month 3 days ago) and read 2632 times:

Quoting AirTran737 (Reply 10):
I know all of the YX diehards will cry about losing their brand, but it is that very brand that is sinking YX.

Oh, yeah, "AirTran," is such an exciting name for a brand. "Air Transportation," is there a bar code on the tail?

Quoting AirTran737 (Reply 10):
I'm pretty sure you work for YX, wander into ops and have them pull the names on your MCO-MKE flights, I'm sure you will see an AirTran exec on the manifest from time to time.

So AirTran is conducting industrial espionage? I see. How nice.



North Central: Good People Made Their Airline Great! FLY MD-90 POWER! Keep 'em Flying DELTA Family!
25 Quickmover : "I've said it before, I'll say it again.... the airline that "something's brewing with" is much further to the west than YX." a) Frontier? b) Alaska?
26 Post contains images Mariner : $225 million wouldn't even get you in the door at Alaska. They have nearly $1 billion in the bank, their market cap is just under $1 billion, and any
27 ATLFlyer323 : SBN580 Oh, yeah, "AirTran," is such an exciting name for a brand. "Air Transportation," is there a bar code on the tail? Well sadly the Brand dosen't
28 Quickmover : How would a code share work when one carrier offers business class and the other doesn't? I guess it wouldn't be any different than UAL and TED. Any t
29 SBN580 : Instead of all this predatory talk, maybe they are just hedging the future for two reasons: 1. The possibility of taking any advantages in a Delta ban
30 Mariner : Exactly that. Frontier's Elite passengers are a pretty happy bunch, even without biz class. They do have the More Store - such a brand new Merc for 4
31 Boeing7E7 : Or further East depending on if you're refering to UA or CO.
32 Post contains images Qxq400 : I have long thought that this could happen sometime. After the horrible summer that AS has had I wonder ?? There is alot of fear among senior managem
33 ERAUMcDlover : ok lets think about this. YX's 712's would be PERFECT for FL. FL stands the chance to make money, except for that horrible livery. I'm sorry, but i al
34 Luv2fly : MCI has a horrible record for airlines that have hubbed there in the past, can you say Eastern, Braniff and Vangaurd!
35 Flyinryan99 : Travis - would Hawaiian (or heck Aloha) be going too far west? They have 717s (and 732s) for the island hopping which could feed some 73G/738 to the m
36 Post contains links Vatveng : Which has been determined (in other threads) to be a typo. http://www.airliners.net/discussions...eral_aviation/read.main/2274863/4/
37 Sideflare75 : Our 717's aren't really all that similar once you get inside. Obviously different seat's, different galleys, no forward lav. These things are not che
38 SBN580 : I am very sorry to hear that AS has been having problems finanically. They are the best airline I have ever flown. From the service of the employees,
39 Quickmover : "Our 717's aren't really all that similar once you get inside. Obviously different seat's, different galleys, no forward lav. These things are not che
40 ERAUMcDlover : definately. boeing would swap interiors to prevent a desert home for those birds. use that money to acquire the YX's birds through a merger, or wait t
41 Gr8SlvrFlt : The two 717s that AirTran got from Hawaiian also came with only two lavs, different galleys, seats, etc. They were modified to the point that they are
42 Galapagapop : For the paperwork, early fleet retirments, and possibly to assume all those loans YX had got during their trip through BK. And a few extra bucks coud
43 Post contains links Mariner : Did I miss something? When did Midwest go through bankruptcy? I - and others - thought they avoided it: http://www.usatoday.com/travel/news/2003/07/1
44 AirTran737 : They never filed for bankruptcy, they were dangerously close in 2003, but got the pilots and F/A's to give concessions. They are however getting close
45 Galapagapop : No, I thought they went through in 2002 and came out in 03'? Of coarse I could be thinking of someone else, but I could swear, well whatever, they've
46 Sideflare75 : When did Boeing ever invest in YX??? The 717's are financed through Boeing Capital but that's about it. Did I miss something?
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