Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
AirTran Allows YX Offer To Expire  
User currently offlineN822ME From , joined Dec 1969, posts, RR:
Posted (7 years 1 week 3 days 23 hours ago) and read 6695 times:

From
http://biz.yahoo.com/prnews/070812/nysu011.html?.v=4

ORLANDO, Fla., Aug. 12 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc. (NYSE: AAI - News) the parent of AirTran Airways, today announced that negotiations with Midwest Air Group, Inc. (Amex: MEH - News) have ended and AirTran's tender offer to purchase Midwest shares has expired.

Interesting Quote:

"The Midwest board has chosen to ignore the overwhelming majority of shareholders' wishes to merge with AirTran, a partner with whom Midwest could have grown and become a national carrier, including our commitment to provide employment protection and more jobs for its employees and more choices for its customers. Instead, the Midwest board has chosen a path that will benefit current senior management by selling out to a private equity firm and a so- called 'passive' investor whose involvement will surely raise antitrust concerns, casting doubt for shareholders on whether a transaction can, in fact, close. Furthermore, private equity investors are laser focused on generating short-term returns and the only way to accomplish that goal is to slash costs by cutting back on service and eliminating jobs. If the Midwest board is successful in selling the company to a private equity investor, the Midwest employees should be concerned about their job security and Midwest's customer service is sure to suffer," stated Leonard.

Does this mean a Northwest coalition?

103 replies: All unread, showing first 25:
 
User currently offlineCubsrule From United States of America, joined May 2004, 22867 posts, RR: 20
Reply 1, posted (7 years 1 week 3 days 23 hours ago) and read 6670 times:

Quoting N822ME (Thread starter):
Furthermore, private equity investors are laser focused on generating short-term returns

Isn't that exactly what Octavian and some of the other big proponents of the merger wanted?



I can't decide whether I miss the tulip or the bowling shoe more
User currently offlineN822ME From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 1 week 3 days 23 hours ago) and read 6660 times:

I would gander that whatever other deal was on the table offered a higher return for the shareholders than what AirTran offered... and the verbiage about anti-trust concerns infers an airline, and mirrors almost exactly what Leonard said about a possible Northwest interest two days ago. I'm guessing AirTran got told "No thanks" got pissy and put this out there, always in an effort to get their slant out ahead of any others.

I guess this forces some more information to be forthcoming soon?


User currently offlineChiGB1973 From United States of America, joined Mar 2004, 1615 posts, RR: 1
Reply 3, posted (7 years 1 week 3 days 23 hours ago) and read 6627 times:

Quoting N822ME (Thread starter):
Does this mean a Northwest coalition?

NW is not private.

They already have a coalition of sorts with NW via a codeshare.

M


User currently offlineN822ME From , joined Dec 1969, posts, RR:
Reply 4, posted (7 years 1 week 3 days 23 hours ago) and read 6615 times:

Quoting ChiGB1973 (Reply 3):
NW is not private.

They already have a coalition of sorts with NW via a codeshare.

Yes, I'm aware of that.

However, private owners of a company can include publicly traded companies. News on Friday was that Northwest was rumored to consider a "passive" stake in Midwest, putting forward funding with other equity investors to take the company private.


User currently offlineMke717spotter From United States of America, joined Dec 2005, 2453 posts, RR: 5
Reply 5, posted (7 years 1 week 3 days 23 hours ago) and read 6603 times:

Yes!!! Wow so its finally over eh? Guess i can finally breath a sigh of relief that YX is here to stay...So does this mean YX is going private then?


Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
User currently offlineVulindlela744 From United States of America, joined Jan 2000, 520 posts, RR: 0
Reply 6, posted (7 years 1 week 3 days 23 hours ago) and read 6603 times:

Well, maybe FL can or will make a move on Frontier now. That is the rumor going around at Airtran right now. Who knows what's next.

User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 1 week 3 days 23 hours ago) and read 6592 times:

Quoting N822ME (Thread starter):
Does this mean a Northwest coalition?

I smell the stock dropping to under $10 by the closing bell tomorrow, mainly due to a massive sell off by the institutionals who bought in to make some $$$. That's going to seriously affect the portfolios of individual investors.

Then again, the stock drop may be exactly what AirTran wants to have happen. Come in with a lower offer or even start purchasing shares on the open market.

While the tender offer may be history, FL's battle for YX isn't. They aren't going to go gentle into the night like they did with their attempt to purchase most of TZ's MDW assets. They've put too much time and effort in this fight. They do have MEH shareholders on their side, and their slate of candidates on MEH's BOD.

If you think some of the shareholders were angry at Tim at the recent conference call, what could happen next would make that look like a church picnic.

Personally, I think the NW involvement is a red herring on the part of YX to try to get FL to back off. NW just exited CH. 11, you think their shareholders are going to want them to invest or buy out an airline so soon after getting their own house in order?


User currently offlineN822ME From , joined Dec 1969, posts, RR:
Reply 8, posted (7 years 1 week 3 days 23 hours ago) and read 6540 times:

Quoting Srbmod (Reply 7):
I smell the stock dropping to under $10 by the closing bell tomorrow, mainly due to a massive sell off by the institutionals who bought in to make some $$$. That's going to seriously affect the portfolios of individual investors.

Are we reading something different? Joe Leonard says YX is choosing to sell to private equity with a partner that would possibly have anti-trust concerns (read: another airline). And the FL offer is expiring because YX has made up its mind to go with somebody else.

Why would the stock drop if there's another offer at least as good as, if not better than, AirTran's on the table? Or are you assuming that YX's BOD, including the 3 so-called AirTran appointees, bucked their fudiciary responsibility and took a much lower offer?


User currently offlineKnope2001 From United States of America, joined May 2005, 2893 posts, RR: 30
Reply 9, posted (7 years 1 week 3 days 23 hours ago) and read 6540 times:

Ummm...it's not simply a matter that they are letting the AirTran bid expire. The AirTran release says that Midwest is indeed selling....just not to them.

Of course the details are not out yet, and there are several more hours of speculation with precious few added facts. But for all we know the purchaser of Midwestis offering more than AirTran did.

We'll know more tomorrow.


User currently offlineCubsrule From United States of America, joined May 2004, 22867 posts, RR: 20
Reply 10, posted (7 years 1 week 3 days 23 hours ago) and read 6501 times:

Quoting Srbmod (Reply 7):
Come in with a lower offer or even start purchasing shares on the open market.

I'm not sure AAI is in a cash position to buy up a lot of MEH shares. Recall that much of the cash in the original tender offer was MEH's cash, not AAI's.

Quoting Srbmod (Reply 7):
They do have MEH shareholders on their side, and their slate of candidates on MEH's BOD.

Depending on what some of the institutional investors do, the level of shareholder support for a takeover may drop dramatically in the near future.



I can't decide whether I miss the tulip or the bowling shoe more
User currently offlineSkyyMaster From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 1 week 3 days 22 hours ago) and read 6488 times:

Quoting Srbmod (Reply 7):
While the tender offer may be history, FL's battle for YX isn't.

I have to agree. Airtran has been after this too long. Methinks they aren't finished yet.


User currently offlineMKENut From United States of America, joined Jul 2007, 699 posts, RR: 1
Reply 12, posted (7 years 1 week 3 days 22 hours ago) and read 6461 times:

FOX 6 Milwaukee has indicated Midwest will have a news conference soon.

User currently offlineSideflare75 From United States of America, joined May 2005, 613 posts, RR: 1
Reply 13, posted (7 years 1 week 3 days 22 hours ago) and read 6423 times:

Quoting SkyyMaster (Reply 11):
I have to agree. Airtran has been after this too long. Methinks they aren't finished yet.

The news release says they are selling to private equity, just not Airtran. Midwest is still being sold.


User currently offlineVictorKilo From United States of America, joined Jul 2006, 311 posts, RR: 0
Reply 14, posted (7 years 1 week 3 days 22 hours ago) and read 6390 times:

Quoting N822ME (Thread starter):
Furthermore, private equity investors are laser focused on generating short-term returns and the only way to accomplish that goal is to slash costs by cutting back on service and eliminating jobs. If the Midwest board is successful in selling the company to a private equity investor, the Midwest employees should be concerned about their job security and Midwest's customer service is sure to suffer," stated Leonard.

Translation:

YX, if you sell to a private equity investor, we'll sue you for not considering "other stakeholders" per Wisconsin law.

[Edited 2007-08-13 04:46:18]

User currently offlineBillReid From Netherlands, joined Jun 2006, 1001 posts, RR: 0
Reply 15, posted (7 years 1 week 3 days 22 hours ago) and read 6330 times:

What is interesting here is this is the worst case for YX employees.

If NW invests, YX and MKE become nothing more than a RJ base with the B-717's replacing the DC-9s in the NW system.
I guess this might be a way to hire some pilots for Americas best airline at cancelling flights.

Given the severe jitter on wall street and a lack of capital in the market, I would suggest that $10.00 per share is HIGHLY optomistic. Given that other far stronger companies lost 8-10% last week on the market problems we should realstically expect the YX shares to drop closer to 6.00 - 7.00 per share in the next ten days.

The end result will be that YX will be positioned for a very soft takeover.
YX is dead regardless how we look at.

There is no good scenario for the YX employees here unless FL renews the offer at a lower bid.
Employees need to make sure the resumes are updated.



Some people don't get it. Business is about making MONEY!
User currently offlineBNAtraveler From United States of America, joined Dec 2003, 410 posts, RR: 2
Reply 16, posted (7 years 1 week 3 days 22 hours ago) and read 6287 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Texas Pacific Group got 'em:

http://www.midwestairlines.com/MAWeb...iles/programNewsDisplay.aspx?id=26


User currently offlineMSNYX From United States of America, joined Dec 2006, 130 posts, RR: 0
Reply 17, posted (7 years 1 week 3 days 22 hours ago) and read 6287 times:

Nothing really new here...just an "update"
http://www.reuters.com/article/marketsNews/idUKSP29116120070813?rpc=44



If I rise on the wings of the dawn, if I settle on the far side of the sea, even there Your hand will guide me
User currently offlineCubsrule From United States of America, joined May 2004, 22867 posts, RR: 20
Reply 18, posted (7 years 1 week 3 days 22 hours ago) and read 6288 times:

Quoting VictorKilo (Reply 14):
YX, if you sell to a private equity investor, we'll sue you for not considering "other stakeholders" per Wisconsin law.

AAI has no standing to sue. They're not a stakeholder.

Quoting BillReid (Reply 15):
There is no good scenario for the YX employees here unless FL renews the offer at a lower bid.

For all we know, the mystery private equity group will take the company private but change nothing. How would that harm employees? The fact that Joe says something doesn't make it so.

Quoting BillReid (Reply 15):
If NW invests, YX and MKE become nothing more than a RJ base with the B-717's replacing the DC-9s in the NW system.

If NW money is involved (which we don't know), perhaps the goal was exclusively to keep FL out of MKE. NW seems content to coexist with YX now; after all, they could have dragged the last MKE focus city attempt out much longer. Many NW customers in MKE are also loyal YX fliers (and vice-versa). NW could very well do nothing but make the partnership more intimate.



I can't decide whether I miss the tulip or the bowling shoe more
User currently offlineCitrusCritter From Pitcairn Islands, joined May 2007, 1095 posts, RR: 3
Reply 19, posted (7 years 1 week 3 days 22 hours ago) and read 6288 times:

Personally I'm very pleased with this outcome. I felt YX was overvalued by FL, and if it gets dismantled by NW over the long term, then that's what it deserves. Here's to hoping FL moves strong into MKE as well as into STL and MEM! Come on MEM, let's take it to Big Red!  Wink


TLH
User currently offlineSideflare75 From United States of America, joined May 2005, 613 posts, RR: 1
Reply 20, posted (7 years 1 week 3 days 22 hours ago) and read 6263 times:

Quoting BillReid (Reply 15):
What is interesting here is this is the worst case for YX employees.

If NW invests, YX and MKE become nothing more than a RJ base with the B-717's replacing the DC-9s in the NW system.
I guess this might be a way to hire some pilots for Americas best airline at cancelling flights.

Given the severe jitter on wall street and a lack of capital in the market, I would suggest that $10.00 per share is HIGHLY optomistic. Given that other far stronger companies lost 8-10% last week on the market problems we should realstically expect the YX shares to drop closer to 6.00 - 7.00 per share in the next ten days.

The end result will be that YX will be positioned for a very soft takeover.
YX is dead regardless how we look at.

There is no good scenario for the YX employees here unless FL renews the offer at a lower bid.
Employees need to make sure the resumes are updated.

I don't agree. I think it is great. They turned down $15.75/share so the other offer must have been more. It still has to pass a shareholder vote so this is not over yet but if they were truly in it to make money then all the shareholders will say yes.

And as I type this I got this in a e-mail:
"The Midwest Air Group Board of Directors today said that it has unanimously
determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of
an affiliate of TPG and one or more partners to acquire all of the
outstanding shares of Midwest for $16.00 per share."


User currently offlineN822ME From , joined Dec 1969, posts, RR:
Reply 21, posted (7 years 1 week 3 days 22 hours ago) and read 6238 times:

So $16 per share, all cash.... so how is that worse off for the shareholder, and make them sell, than the AirTran offer?

User currently offlineMSNYX From United States of America, joined Dec 2006, 130 posts, RR: 0
Reply 22, posted (7 years 1 week 3 days 22 hours ago) and read 6195 times:

Quoting Sideflare75 (Reply 21):
"The Midwest Air Group Board of Directors today said that it has unanimously
determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of
an affiliate of TPG and one or more partners to acquire all of the
outstanding shares of Midwest for $16.00 per share."

Here's the link:
http://www.midwestairlines.com/MAWeb...iles/programNewsDisplay.aspx?id=26



If I rise on the wings of the dawn, if I settle on the far side of the sea, even there Your hand will guide me
User currently offlineCubsrule From United States of America, joined May 2004, 22867 posts, RR: 20
Reply 23, posted (7 years 1 week 3 days 22 hours ago) and read 6184 times:

Here's the full press release...

Milwaukee, Wisconsin, August 12, 2007 – The Board of Directors of Midwest Air Group (AMEX: MEH), parent company of Midwest Airlines, today said that it has unanimously determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of an affiliate of TPG and one or more partners to acquire all of the outstanding shares of Midwest for $16.00 per share.

The board took its action after receiving a letter from AirTran Holdings, Inc. (NYSE: AAI) in which AirTran stated it was making its best and final offer to acquire all of the outstanding shares of Midwest pursuant to a one-step merger for consideration consisting of cash and stock at $15.75 per share, valued at Friday's closing price of AirTran's common stock. In reaching that determination, the board concluded that the TPG offer presented greater value and certainty for Midwest shareholders than the AirTran offer.

Under the terms of the offer from TPG, the private equity investor indicated that its acquisition "would permit the Company to continue its rich legacy as a leading provider of customer oriented quality air service."

Midwest and TPG expect to execute a definitive merger agreement no later than August 15, 2007.

The offer from TPG is set forth in the following letter that was received by the Midwest board on August 12:

Board of Directors
Midwest Air Group, Inc.
6744 South Howell Avenue
Oak Creek, Wisconsin 53154

Ladies and Gentlemen:

TPG Capital, L.P. ("TPG") is pleased to submit the following indication of interest for an acquisition by TPG of Midwest Air Group, Inc., a Wisconsin corporation (the "Company"), for $16.00 in cash for each share of the Company's common stock.

We believe that our proposal offers a compelling opportunity for your shareholders and is superior to the proposal that has been submitted by AirTran Holdings, Inc. ("AirTran"). The proposed purchase price is an all cash offer, which, in light of the recent volatility in the United States equity markets, represents a more certain value for your shareholders than the large stock component of AirTran's proposal. In addition to providing more certain value, an acquisition by TPG would permit the Company to continue its rich legacy as a leading provider of customer oriented quality air service. Our acquisition would provide for greater stability and prospects for all of the Company's important constituencies including customers, employees and the greater Milwaukee and Kansas City metropolitan areas. We have been very impressed with your management team and are confident in its ability to maintain the Company's reputation of excellent service, while at the same time running a profitable airline.

We believe that our experience in this sector, together with our track record for maintaining stable, long term investments, argue strongly in favor of an acquisition by TPG. We are one of the largest private equity investors in the world and the most experienced private equity investor in the global airline sector. Investments carried out by us in and related to the airline industry include, among others, Continental Airlines, America West Airlines, Ryanair, Hotwire and Sabre. We are proud of the record that we and the management teams have accomplished in creating value in these companies.

Our transaction would be financed through contributions from TPG Partners V, L.P., a fund we manage with $15.3 billion of committed equity capital, and one or more partners, which contributions would be fully committed at the time of signing. The consummation of the transaction would not be subject to a financing condition, and we do not anticipate any issues in obtaining antitrust clearance or any other regulatory approvals, so we anticipate consummation would be subject only to customary conditions.

We are fully prepared to complete confirmatory legal and accounting due diligence and the concurrent negotiation of definitive documents on an expedited basis in order to execute a transaction by August 15, 2007.

This letter is an expression of interest only and any binding agreement would arise only upon execution of definitive agreements.

We are very excited about the prospects for this transaction, and we look forward to having the opportunity to work with you to finalize a transaction that we believe will benefit your shareholders and other constituencies. We are prepared to meet with you or your representatives at any time to discuss all aspects of our proposal.

Very truly yours,

TPG Capital, L.P.
By:
Name: Richard P. Schifter
Title: Partner

Midwest Airlines features jet service throughout the United States, including Milwaukee's most daily nonstop flights and best schedule to major destinations. Catering to business travelers and discerning leisure travelers, the airline earned its reputation as "The best care in the air" by providing passengers with impeccable service and onboard amenities at competitive fares. Both Skyway Airlines, Inc. - a wholly owned subsidiary of Midwest Airlines - and SkyWest Airlines, Inc. operate as Midwest Connect and offer service to and connections through Midwest Airlines' hubs. Together, the airlines offer service to 53 cities. More information is available at http://www.midwestairlines.com.

This news release contains forward-looking statements that may state the company's or management's intentions, hopes, beliefs, expectations or predictions for the future. Words such as "planned," "projecting," "expect," "should," "anticipate," "believe," "estimate," "goal," "plan," "objective" or similar words are intended to identify forward-looking statements. There can be no assurance that the company will enter into a merger agreement with TPG. Factors that may cause events contemplated by the company's forward-looking statements not to occur include, but are not limited to, the risk factors described in "Item 1A. Risk Factors" in the company's "Annual Report on Form 10-K" for the year ended December 31, 2006.

Important Information
Midwest filed a Schedule 14D-9 with the Securities and Exchange Commission on January 25, 2007 and subsequent amendments which set forth the reasons for the Midwest board's recommendation with respect to the unsolicited exchange offer by AirTran Holdings, Inc. and related information.

The links below contain information pertinent to this situation.
This site is regularly updated as events change and contains publicly available information.



I can't decide whether I miss the tulip or the bowling shoe more
User currently offlineCitrusCritter From Pitcairn Islands, joined May 2007, 1095 posts, RR: 3
Reply 24, posted (7 years 1 week 3 days 22 hours ago) and read 6153 times:

I think the ultimate lose 10 years down the road here will be YX employees and MKE. The Midwest Express legacy was toast whether it was AirTran or Northwest, but at least AirTran was committed to building MKE further, thus ensuring jobs and n/s flights at low fares. Northwest is committed to neither, especially since they will now quite probably have pricing power at MKE. MKE may well become the new CVG.


TLH
25 N822ME : It appears Northwest is not the controlling interest here, if they are involved (though likely they put up some money). Could also go the way of Midw
26 MrSTL : Wild thought, maybe the TPG will now make a hostile takeover bid for FL, seems like YX and FL are still a great match and TPG has the money to do it.
27 Sideflare75 : I find it interesting that the board voted unanimously. What happened to Joe's three insiders??? So in the end this was just a big waste of money for
28 Airbusaddict : So is this a good thing or a bad thing?? Im not getting it.
29 N822ME : According to the news right now, Midwest brand will remain, and it will be operated as an independent company.
30 Cubsrule : Committed to MKE like they committed to DFW and MDW?
31 Flydl2atl : The bad news is if the mgmt is unable to generate the profits that TPG expects. I don't think there's much to stop them from selling the company piece
32 JBo : Good move. As others have stated, if the shareholders are, indeed, in it for the money, this offer should be supported. With proper investment and sup
33 Airbusaddict : So will Midwest still be the same Midwest, only owned by a different company?
34 Post contains images Mke717spotter : So...how long now until FL announces more service from MKE?
35 CitrusCritter : They followed their fiduciary duties and accepted the cash offer. While day to day operations may remain independent, it is yet to be seen how much s
36 Post contains links Mikey711MN : Here is the Milwaukee Journal-Sentinel article about the deal.
37 Vulindlela744 : Does anyone think that FL will try and acquire Frontier? I work for Airtran and that is a big rumor around our company right now. Any comment?
38 CitrusCritter : Indeed, but they weren't buying YX. Octavian was just trying to make a quick buck, but AirTran was acquiring YX. In this case, it is a company simila
39 Airbusaddict : I STILL DONT GET WHAT IS HAPPENING. The media is kind of making it complicated to understand. Will the services change, will the airline not be operat
40 CitrusCritter : I don't know why they'd want in at DEN, which is definitely one of the most competitive markets with UA and WN. The regional opportunities to expand
41 N822ME : Curious how AirTran spokespeople are saying Midwest has done a disservice to its shareholders. How so? $16 a share, cash, versus $15.75 a share that i
42 CitrusCritter : Hard to say at this point. Essentially all we know is that a major investment firm will own YX and that YX will remain as the airline's name. The deg
43 Cubsrule : Certainly not, but it's ironic that AAI would make that critique of private equity investors when it was the people who wanted to make a quick buck t
44 Sideflare75 : As it sounds right now Midwest is staying Midwest. Probably with the same management team, minus Carol who already said she is retiring.
45 MUWarriors : Basically they are being bought by a private company, with other investors (probably Northwest being one of them). This company is currently saying t
46 Concentriq : I say its bad news: TPG, which appears to have no connection to MKE, or WI region will sell YX the minute things become tight. Or: it will cut down on
47 Post contains links N822ME : Appears Northwest is involved: Northwest Airlines Joins TPG Bid for Midwest Air Group http://biz.yahoo.com/bw/070812/20070812005073.html?.v=1&printer=
48 CitrusCritter : Amazing to me how an airline that just came out of BK and that can't even fly its normal schedule without all sorts of cancellations can afford to ta
49 JBo : Isn't that exactly the same thing that would have happened if the AirTran merger went through?
50 MUWarriors : NW has $3.3 billion dollars of cash on hand or short term investments, they self funded their bankruptcy. This is a good investment for them in that
51 Concentriq : I never said FL woudl have done better. Ideally I would have liked no changes made at all.
52 Mikey711MN : They can't, but their banks can. And if they see this as a way to solidify their investment in NW, then they're very interested in making this happen
53 Post contains images CitrusCritter : Yeah, I'm really complaining more about bankruptcy code than anything else. I recognize the value to NW in keeping FL out of MKE.
54 Cubsrule : If they keep YX operating independently, I don't see how the DoJ would have any problem with it at all.
55 Post contains images MUWarriors : That I won't disagree with you on . Bankruptcy has become nothing more than an accounting practice these days, something I feel should stop. Yeah, I
56 JBo : Well there's nothing yet that says TPG will make any changes, so let's not be quick to judge, eh? 822ME's post above posts a seemingly important piec
57 CitrusCritter : Yeah me too. Even though the side I was backing "lost" in this deal, I'm pleased with the outcome. On one hand, I respect what YX is trying to do in
58 CO777DAL : Plenty of companies are owned by Private Equity Firms. Many companies actually end up doing better under ownership of a Private Equity Firm. Take Lord
59 ZL : I think now midwest will stay as an independant airline. NW proposes to buy it only to prevent Airtran from buying it. Midwest's MKE hub has little or
60 MKENut : I have been against this merger from the start... But I have to thank AirTran for putting MKE in the spotlight. Maybe other airlines will have second
61 Ruuxxv : AirTran's candor, or rather, lack of it, throughout this entire process has been insulting, at best and idiotic, at worst. This latest release reads l
62 RL757PVD : If NW is behind the deal to buy them.... the MKE folks aren't going to be happy when their air service getting decimated by NW to a level probably lik
63 Mikey711MN : Hence my point...this is sort of a "tail wagging the dog" case. Sure, YX will seemingly act as an independent airline, but if they were allowed to do
64 MUWarriors : NW is involved, but they won't be running the day to day operations. Basically they injected some money to keep FL out of MKE, and are at best a mino
65 Indy : I might be wrong but I believe that would be illegal. I'm sure their operations would remain independent of each other. NW will remain NW and YX will
66 Concentriq : Changes as in still owned by MKE based group. I should have been more clear. Of all the places I lived, MKE is one of the more "patriotic". Having lo
67 ATLAaron : They have enough cash on hand to fund this deal. This will change. Come on YX is not truly "independent" anymore, they will not compete with NW on an
68 Mke717spotter : Now that YX doesn't have to waste any more money fighting off FL, I don't see why YX won't continue to make money.
69 Concentriq : Could someone explain please? couldnt YX BOD decide that its in shareholders best interest not to sell YX to anyone, and continue? I am failing to und
70 MUWarriors : The problem is the offer happened, and it raised the amount of money shareholders could get from their shares, unfortunately you can't look at it in
71 JBo : That's your opinion and there's hardly any evidence to support that theory other than the fact that NW invested some money towards the deal. How much
72 Post contains images Concentriq : Thank you for explanation.. I figured as much. I was talking more in terms of every YX shareholder gets $16 for each of their shares, and thats all.
73 Flyingchoirboy : Well, YX made their decision, and FL will move on and continue to grow. I hope for only the best for the employees of both YX and FL. Scott
74 Jmc1975 : FL has stated that there is plenty of opportunity to expand at MKE. It now looks like they'll it alone, competing against YX rather than absorbing the
75 JustPlaneNutz : The anti-trust angle will be interesting to watch. On the face of it, this has much less impact the TWA-AA or AmWest-US. However, it is much more clea
76 2175301 : Actually, I think this thread is misstated. Airtran did not really let the offer expire. Midwest sold themselves to someone else - out from under Airt
77 Knope2001 : For those so sure that Northwest's investment in this deal will spell doom for Midwest, remember how Northwest ruined Continental when they acquired a
78 Knope2001 : This morning on local MKE radio (WTMJ) Carol Skornika said that NW's investment in the holding company TPG is forming was 40%. However she also said t
79 Daus : Agreed. If AirTran was still in play this morning and capable of raising it's bid, then yes, Octavian would still be cheerleading this fight higher,
80 Vivavegas : Two Questions: When is Carol's last day? Wondering how the unions at NW will take spending $180m (Northwests portion) on another airline? While Tim a
81 Post contains images CitrusCritter : Most of the country colloquially refers to Neiman Marcus as "Needlessly Marked-up." Not sure that's a good comparison when MKE just got screwed out o
82 JustPlaneNutz : And Joe said $15 was FL's best offer. That and $5 will get you a cup of latte.
83 Knope2001 : Certainly it's not approved until it's approved, so anything said prior is just speculation (including what I say). However the DoJ does not have a t
84 JBo : Read the article N822ME posted above:
85 Super98 : They did not take any lower offers. $16 / shr YX got waht they wanted. FL is sour grapes, but this was all unsolicited in the first place, so what is
86 Post contains images RL757PVD : So how many airlines does northwest have to invest in before the DoJ will intervene (CO, now YX) Am I the only one that finds it strange that NW feels
87 N822ME : I would argue it's still differentiated. This is an airline that has notably better customer service than most, especially in delays that may not be
88 Mke717spotter : I find it hilarious that Joe Leonard views the tenders as "a ringing endorsement of the business plan." Most of those tenders are from corporate holde
89 CitrusCritter : 33'' in saver on the MDs according to seatguru.com, so more or less true (excepting B6). However, the Signature seats on the 717 in the all 2x2 layou
90 N822ME : As part of the reconfiguration, Signature pitch is increasing by several inches. So you've got just about United E+ legroom, plus width to cross your
91 N822ME : I forgot to add... having flown the following products in a short timeframe: YX Signature, YX Saver, FL Business, FL Coach..... I could cross my legs
92 Flighty : Well, they are taking a risk. The hedge fund is indeed buying into Midwest as-is. Except the zombie dollars from NWA that would have Midwest be a flo
93 N908AW : Or at least said they would be. NW would be well positioned to pretty much blow a combined FL/YX out of the water. FL would have zero obligation to s
94 RJNUT : In flipping thru my pocket flight guide, I honestly could not find many markets that MKE is missing nonstop service to and many of the fares are not
95 CitrusCritter : You are basing your assumption off of MKE O&D. FL made very clear they were going to be bringing connections through the airport.
96 Cubsrule : But how many connections? In many markets, FL was proposing to fly several times the number of seats flown ex-ORD with a local market about 1/4 the s
97 RJNUT : O&D is where the money is from everything I read!! no revenue split between two segments! But FL would still, then have to drop many of the markets I
98 Post contains images CitrusCritter : FL is heavily reliant on connections through ATL, yet they seem to do awfully well. I mean, they were only 11x more profitable than YX in this past q
99 Quickmover : I would tend to agree with you, but the MEH stock price is a mystery right now. The $16 all cash offer should have less room for doubt than the Airtr
100 Indy : If you are running a hub you pretty much have to. WN runs a number of 737's daily between IND and MDW.
101 Daus : Some doubt, but the spread also includes the cost to purchase the stock and the short term capital gains (what Pequot is complaining about) for a sto
102 N822ME : Where are you getting this 11x more profitable? Are you looking at pure profit numbers? I'd hope AirTran would be more profitable based on $$ profit.
103 Cubsrule : But what they proposed for MKE wasn't even in the same league, with some markets (HPN and YUL are two good examples) probably pulling as little as 15
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Will AirTran Extend The YX Offer? posted Fri Aug 10 2007 15:47:29 by N917ME
AirTran Extends Tender Offer - 56.6% YX Tendered posted Thu May 17 2007 12:41:11 by Mainland
AirTran Extends Tender Offer For Midwest Again posted Wed Mar 7 2007 23:35:45 by Mainland
Frontier Makes Offer To Cedar Rapids -CID posted Fri Feb 23 2007 19:20:54 by Alphascan
Airtran Sends Another Letter To Midwest Holders posted Thu Jan 25 2007 01:57:41 by B737700doctor
AirTran At MSY Back To 5 Flights posted Fri Jan 5 2007 14:31:12 by BNinMSY
AirTran Announces New Service To Stewart posted Tue Oct 3 2006 16:41:16 by PlaneGuy27
YX Out To PAE posted Tue Aug 22 2006 00:17:56 by Pilotfox
AirTran Adds Daily Dayton To Tampa Flight posted Tue Aug 8 2006 21:57:19 by KarlB737
YX Charters To BDA! posted Wed Jan 25 2006 23:19:24 by 9KBOS