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Midwest Accepts All Cash Offer From TPG!  
User currently offlineN917ME From United States of America, joined Feb 2005, 730 posts, RR: 1
Posted (7 years 1 month 2 weeks 5 days 21 hours ago) and read 9882 times:

WHOOO!!

To: All Midwest and Skyway Airlines Employees
Date: August 12, 2007
From: Timothy E. Hoeksema
Subject: Board of Directors Update #4

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.

The board took this action after receiving a letter from AirTran Holdings that stated the airline was making its best and final offer to acquire all of the outstanding shares of Midwest common stock at $15.75 per share, valued at Friday's closing price of AirTran's common stock. In reaching its determination, our 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." The board expects that Midwest and TPG will execute a definitive merger agreement no later than August 15, 2007.

TPG is one of the largest private equity investors in the world and the most experienced in the airline sector. It has invested in Continental Airlines, America West Airlines, Ryanair, Hotwire and Sabre with the goal of helping management teams build long-term value for stakeholders. TPG's offer to Midwest is set forth in a letter that was received by the Midwest board on August 12. The letter is attached at the end of this memo for you to read.

This announcement is sure to result in intense media coverage. I will again remind you that news coverage is often highly speculative. Be assured that we will inform you of any developments as there is news to report.

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


This is GREAT for Midwest.

108 replies: All unread, showing first 25:
 
User currently offlineMattRB From Canada, joined Apr 2005, 1624 posts, RR: 9
Reply 1, posted (7 years 1 month 2 weeks 5 days 21 hours ago) and read 9846 times:

Hallmark really needs a card for occasions like this.

Nelson Muntz on the front, mouth agape, pointing at you.

You open it up and hear his familiar refrain of 'HA HA!'

And it needed to be sent to the FL BOD.

Way to go YX  Smile



Aviation is proof that given, the will, we have the capacity to achieve the impossible.
User currently offlineTjwgrr From United States of America, joined Mar 2000, 2453 posts, RR: 3
Reply 2, posted (7 years 1 month 2 weeks 5 days 20 hours ago) and read 9781 times:

So does this mean AirTran will quietly fade away, or will we see AirTran beef up their presence at MKE and/or IND since they've made it clear they want another hub outside of ATL?


Direct KNOBS, maintain 2700' until established on the localizer, cleared ILS runway 26 left approach.
User currently offlineJustPlaneNutz From United States of America, joined Feb 2006, 526 posts, RR: 1
Reply 3, posted (7 years 1 month 2 weeks 5 days 20 hours ago) and read 9742 times:

I posted this in the other thread, thinking this would be deleted (I started an YX/FL thread some months ago and got a deletion notice back saying something like "this topic will not be allowed to rule this board". It's made it 2 hours, so maybe not:

The anti-trust angle will be interesting to watch. On the face of it, this has much less impact than TWA-AA or AmWest-US. However, it is much more clearly a case of a legacy moving to thwart LCC competition. I'm not an attorney, but I can't think of a similar case. DoJ review can get political and you would think NW has more support in DC than FL, though BK may have changed that somewhat.

[Edited 2007-08-13 12:43:48]

User currently offlineN917ME From United States of America, joined Feb 2005, 730 posts, RR: 1
Reply 4, posted (7 years 1 month 2 weeks 5 days 19 hours ago) and read 9721 times:

I really do not see an anti trust issue being brought up.

User currently offlineJustPlaneNutz From United States of America, joined Feb 2006, 526 posts, RR: 1
Reply 5, posted (7 years 1 month 2 weeks 5 days 19 hours ago) and read 9692 times:

Given how hard FL fought and how angry their release was, you can bet they'll pursue it.

User currently onlineKarlB737 From United States of America, joined Mar 2004, 3108 posts, RR: 10
Reply 6, posted (7 years 1 month 2 weeks 5 days 19 hours ago) and read 9659 times:

Another fly in the ointment.


Press Release Source: Northwest Airlines

Northwest Airlines Joins TPG Bid for Midwest Air Group

Sunday August 12, 11:30 pm ET

EAGAN, Minn.--(BUSINESS WIRE)--Northwest Airlines (NYSE:NWA - News) today confirmed it is a passive investor in the acquisition entity that TPG Capital, L.P. (TPG) has created to pursue an acquisition of all of the outstanding shares of Midwest Air Group, Inc. at $16 per share. The bid submitted by TPG is subject to the satisfaction of certain conditions.

Milwaukee-based Midwest Air Group operates Midwest Airlines and Midwest Connect. The TPG offer was presented to the Midwest Air Group board of directors on August 12, 2007.

NWA, which is providing financing to facilitate the transaction, will not participate in the management or control of Midwest should TPG acquire Midwest. The previously announced codeshare agreement between NWA and Midwest Airlines will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing.

Northwest has briefed its union leadership on the transaction. The investment contemplated is consistent with all of NWA's union obligations.

Northwest Airlines is one of the world's largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1,000 cities in excess of 160 countries on six continents.

Contact:
Northwest Airlines

--------------------------------------------------------------------------------
Source: Northwest Airlines


User currently onlineKarlB737 From United States of America, joined Mar 2004, 3108 posts, RR: 10
Reply 7, posted (7 years 1 month 2 weeks 5 days 19 hours ago) and read 9625 times:

Courtesy: WTMJ-TV

Midwest Pursues Deal with Private Equity Firm

"Northwest is a passive investor in the group and will not participate in the management or control of Midwest."

http://www.todaystmj4.com/news/local/9117591.html

Video Report:

http://www.todaystmj4.com/news/local/9117591.html?video=YHI&t=a


User currently offlineSkyexRamper From , joined Dec 1969, posts, RR:
Reply 8, posted (7 years 1 month 2 weeks 5 days 19 hours ago) and read 9611 times:

Well I guess this is the best news that could have come out of this whole ordeal......cash infusion. Now maybe we'll hear about orders for 737s in the next few months.

User currently offlineDrgmobile From Canada, joined Aug 2006, 646 posts, RR: 0
Reply 9, posted (7 years 1 month 2 weeks 5 days 18 hours ago) and read 9487 times:

Wow, so a fairly successful carrier gets trumped in its bid to consolidate with a competitor because of a rival bid that includes the financial support of an air carrier that had to use the bankruptcy process to stay around the last couple of years.

And people have to debate the problems with the U.S. airline industry?


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 10, posted (7 years 1 month 2 weeks 5 days 18 hours ago) and read 9435 times:

Aint this a bitch. Well, we all knew it could happen with a private equity group. I wonder what Joe and company will do next?


One Nation Under God
User currently offlineModernArt From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 9163 times:

Quoting Drgmobile (Reply 9):
Wow, so a fairly successful carrier gets trumped in its bid to consolidate with a competitor because of a rival bid that includes the financial support of an air carrier that had to use the bankruptcy process to stay around the last couple of years.

And people have to debate the problems with the U.S. airline industry?

Drgmobile, you just hit the home run shot to dead center field. Right on!


User currently offlineLuisca From , joined Dec 1969, posts, RR:
Reply 12, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 9086 times:

Quoting ModernArt (Reply 11):
Quoting Drgmobile (Reply 9):
Wow, so a fairly successful carrier gets trumped in its bid to consolidate with a competitor because of a rival bid that includes the financial support of an air carrier that had to use the bankruptcy process to stay around the last couple of years.

And people have to debate the problems with the U.S. airline industry?

Drgmobile, you just hit the home run shot to dead center field. Right on!

YX by itself will only last a couple of years, FL will try to encroach on them and build up their services and there revenues will continue to deteriorate, finally FL will by all remaining YX assets in liquidation.

Good luck in BK court YX


User currently offlineJetJeanes From United States of America, joined Oct 2004, 1431 posts, RR: 1
Reply 13, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 8998 times:

Its Northwest according to tpg website...

TPG, Northwest in takeover bid for Midwest Air
Mon Aug 13, 2007 2:15 PM BST
Email This Article | Print This Article | RSS [-] Text [+] By Lilla Zuill and Chris Reiter

NEW YORK (Reuters) - Midwest Air Group Inc. (MEH.A: Quote, Profile , Research), which had been fending off hostile suitor AirTran Holdings Inc. (AAI.N: Quote, Profile , Research), has accepted a higher bid of more than $400 million from private equity firm TPG Capital and Northwest Airlines Corp. (NWA.N: Quote, Profile , Research)

TPG's $16-a-share offer includes a passive investment by No. 5 U.S. airline Northwest, which partners with regional carrier Midwest. AirTran, which had bid $15.75 per share in cash and stock for Midwest, said it would not raise its offer.

"We have terminated negotiations and allowed our tender offer to expire," AirTran Chief Executive Joe Leonard said in a statement. "At this time, we will focus our efforts on AirTran's strategic plan."


Midwest, known for its fresh-baked cookies on board, had steadfastly opposed AirTran's approach for months, setting up a Web site (www.savethecookie.com) in support of its bid to remain independent. The carrier's resistance, however, weakened in June after shareholders elected three board members nominated by AirTran.

Milwaukee, Wisconsin-based Midwest entered into talks with AirTran at the end of July, but at the time said it would also speak with other potential buyers that had stepped forward.

TPG's offer, which Midwest said was subject to a final value calculation but would probably exceed $400 million, represents a 12.5 percent premium to Midwest's closing share price of $14.23 on Friday on the American Stock Exchange.

The transaction is not subject to financing conditions, TPG said in its offer letter to Midwest -- a key consideration given recent credit market turmoil that has created bumpy conditions for other private equity deals. Continued...

© Reuters 2007. All Rights Reserved. | Learn more about Reuters



i can see for 80 miles
User currently offlineItsnotfinals From , joined Dec 1969, posts, RR:
Reply 14, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 8989 times:

Quoting Luisca (Reply 12):
YX by itself will only last a couple of years, FL will try to encroach on them and build up their services and there revenues will continue to deteriorate, finally FL will by all remaining YX assets in liquidation.

Do I smell sour grapes? YX is a fine airline and will be just fine serving the existing hub and focus cities they already have. They have been doing steady and dependable business through all the BK mess of the other airlines. Your comment shows a lack of understanding of what YX is about.

[Edited 2007-08-13 17:19:48]

User currently offlineIkramerica From United States of America, joined May 2005, 21534 posts, RR: 59
Reply 15, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 8964 times:

For everyone who thinks an all cash offer by a private firm is "the best thing for the shareholder," you need to rethink that.

People invest for many reasons. Not always to cash out tomorrow. The FL offer had cash and securities, and it meant that you'd still be an investor in the airline and your investment would be able to grow. If you, as an investor, felt the deal was a good one, you could make quite a bit should you be right, over time.

Being bought out by TPG group means your investment time horizon has just been shortened, you are cashed out, and you no longer own stock in anything. You are done, and have to find a new investment.

I've owned stock in a company that was bought out by another company for cash. It was a tech stock, but I felt quite annoyed because I had invested long term on the potential explosion of that technology, and got short circuited by the buyout. And for the big company, the acquisition only

Quoting KarlB737 (Reply 7):
"Northwest is a passive investor in the group and will not participate in the management or control of Midwest."

They watched "passive investor" SRB get all the glory at the Virgin America launch event, and figured "hey, if he can do it, why can't we?"  Wink



Of all the things to worry about... the Wookie has no pants.
User currently offlineBigJKU From United States of America, joined Feb 2007, 883 posts, RR: 12
Reply 16, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 8904 times:

Quoting Ikramerica (Reply 15):
eople invest for many reasons. Not always to cash out tomorrow. The FL offer had cash and securities, and it meant that you'd still be an investor in the airline and your investment would be able to grow. If you, as an investor, felt the deal was a good one, you could make quite a bit should you be right, over time.

Not to say you are wrong all the time but in this case you are. Midwest shares had been heavily bought up by funds and speculators looking to make the quick buck that have no real interest in holding Air Tran stock as a long term part of their portfolio. Most of these people owned Midwest stock because Air Trans attempt was driving up the price and had a potential payout at the end.

I would agree that if someone were looking to make long term investments this would not be ideal, but really it is not a bad deal at all for someone running a fund. They get to cash out at a premium and invest in something more stable than airlines.

If this were something other than the Airline business, and in particular these two airlines, I would say you had a point. But these stocks were more speculative than anything else, not many intended to hold either of them long term.


User currently offlineIkramerica From United States of America, joined May 2005, 21534 posts, RR: 59
Reply 17, posted (7 years 1 month 2 weeks 5 days 15 hours ago) and read 8867 times:

Quoting BigJKU (Reply 16):
Not to say you are wrong all the time but in this case you are.

Tell me how you really think... honestly, what kind of statement is that? If you didn't think I was "wrong all the time" you wouldn't even say it once.

The smaller investor here MIGHT not like the cash deal. That's not "wrong" but a truth.

The institutional investors who bought in to do the arbitrage probably like it fine, but there are some investors who would have preferred the FL deal.

But it's why I used these words:

Quoting Ikramerica (Reply 15):
People invest for many reasons. Not always to cash out tomorrow.

Some will like it, some won't. But the reaction on these boards was: "See!? FL got beat out and now they are grumpy." When the reality is that not everyone will agree that the TPG offer was better...



Of all the things to worry about... the Wookie has no pants.
User currently offlineBigJKU From United States of America, joined Feb 2007, 883 posts, RR: 12
Reply 18, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8828 times:

Quoting Ikramerica (Reply 17):
ell me how you really think... honestly, what kind of statement is that? If you didn't think I was "wrong all the time" you wouldn't even say it once.

Sorry, poorly phrased statement. In more detail what I mean is that an all cash buyout of airline stock at this time is not too bad of a deal. With the economic instability that is present taking the cash and finding something more secure is more appealing to a lot of investors than taking an interest in AirTran post merger.

If it were a buyout that would add value to the combined company long term that would be one thing but AirTran buying out Midwest was much more likley to just open up those markets to others than anything else. If AirTran stock held the same value 3-5 years from now that it does now I would be surprised.

Getting cash to get out of an airline stock in this market is not a bad deal at this time.


User currently offlineLuisca From , joined Dec 1969, posts, RR:
Reply 19, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8820 times:

Quoting Itsnotfinals (Reply 14):
Do I smell sour grapes? YX is a fine airline and will be just fine serving the existing hub and focus cities they already have. They have been doing steady and dependable business through all the BK mess of the other airlines. Your comment shows a lack of understanding of what YX is about.

No sour grapes at all, I have no interest in YX or FL nor do I own stock nor have I ever flown on YX. Their service may be great an all that bla bla bla, but it is my view that they needed that merger more than FL needed it. YXs finances are less than top notch, they cant really grow and all they have going for them is that their current route network is very desirable to an airline looking to expand in the midwest. The problem is that if they dont grow they will be slowly killed by the larger carriers. Merging into FL made perfect sense, strategically and businesses wise, now I am afraid that YX has signed its own death certificate, TPG is out to make a quick buck and will rape the company clean.


User currently offlineTZTriStar500 From United States of America, joined Jan 2004, 1452 posts, RR: 9
Reply 20, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8792 times:

For all of those who actually think that YX "won" by fighting off the airline you love to demonize FL, I would hold your celebration for awhile. TPG isn't going to sit around and let YX's deficient business plan piss their money away. There will be more massive changes by this to the operation than anything FL would have done. TPG is there to make a return on their investment and they will do all that is necessary to do that though I can't see their interest here.

Some of you wanted "anybody but FL, well you got it, but I think YX will be worse off because of it. Continuing on their merry way, but with more cash, is not going to happen. Honestly, I cannot see what TPG's interest is here, but it may be much larger than just YX which may be used merely as a vehicle to some TPG end game.



35 years of American Trans Air/ATA Airlines, 1973-2008. A great little airline that will not be soon forgotten.
User currently offlineItsnotfinals From , joined Dec 1969, posts, RR:
Reply 21, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8771 times:

Quoting Luisca (Reply 19):
strategically and businesses wise, now I am afraid that YX has signed its own death certificate,

It sould be interesting if you could provide an analysis that can prove this since TPG must have morons that have no idea how to calculate a ROI for a major investment  Smile


User currently offlineJBo From Sweden, joined Jan 2005, 2348 posts, RR: 0
Reply 22, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8771 times:

Quoting Luisca (Reply 19):
YXs finances are less than top notch, they cant really grow and all they have going for them is that their current route network is very desirable to an airline looking to expand in the midwest. The problem is that if they dont grow they will be slowly killed by the larger carriers.

YX fended off NW once when they tried to invade MKE. YX has also made significant expansion this year compared to past years, albeit much of it with the SkyWest CRJ program.

The cash infusion by a private investor is just what YX needs to bolster their growth and expansion, including finally ordering those MD-80 replacement aircraft.

There's no reason at all to believe TPG would dismantle Midwest. None whatsoever. Do some research on the group and you'll find they have a history of taking companies private with successful results.


Why so many here have to be negative about this buyout, I have no idea.



I'd take the awe of understanding over the awe of ignorance any day.
User currently offlineLuisca From , joined Dec 1969, posts, RR:
Reply 23, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8712 times:

Quoting Itsnotfinals (Reply 21):
It sould be interesting if you could provide an analysis that can prove this since TPG must have morons that have no idea how to calculate a ROI for a major investment

I said it was my opinion, I am entitled to it and if you dont like it then your entitled to ignore it, I personally think that TPG will get a great ROI from this, they will build up the company a bit and then sell it off in peices, NW obviously has some motive to be involved in this, I am sure TPG does not need financial assistance from a recently bankrupted airline. NW wants YX, and I think that they were much better off with FL.

I am not the only one who feels the same way.

Quoting TZTriStar500 (Reply 20):
For all of those who actually think that YX "won" by fighting off the airline you love to demonize FL, I would hold your celebration for awhile. TPG isn't going to sit around and let YX's deficient business plan piss their money away. There will be more massive changes by this to the operation than anything FL would have done. TPG is there to make a return on their investment and they will do all that is necessary to do that though I can't see their interest here.



Quoting TZTriStar500 (Reply 20):
Some of you wanted "anybody but FL, well you got it, but I think YX will be worse off because of it. Continuing on their merry way, but with more cash, is not going to happen. Honestly, I cannot see what TPG's interest is here, but it may be much larger than just YX which may be used merely as a vehicle to some TPG end game.

YX did not win today, TPG won.

Quoting JBo (Reply 22):
The cash infusion by a private investor is just what YX needs to bolster their growth and expansion, including finally ordering those MD-80 replacement aircraft

HA, they can not work with the current bussines plan, things have to drastically change or its BK court.


User currently offlineN501US From United States of America, joined May 2005, 220 posts, RR: 0
Reply 24, posted (7 years 1 month 2 weeks 5 days 14 hours ago) and read 8657 times:

I hope things work out for YX! Whenever I see "Private Equity", I can't help but think of what Chechi (spelling), Wilson, and company did to NW after they "bought" the airline. Good luck to YX!


Fools and thieves are well disguised in the temple and the marketplace.....
25 MasseyBrown : I'd sure like to see the terms of NW's "passive" interest. I can't imagine any circumstances in which NW would benefit from a healthy, growing Midwes
26 MUWarriors : YX has been profitable 5 of the last 6 quarters, and their profit (and it was still a profit) last quarter would have been higher if not for fending
27 Post contains links TSRA : Quoting MUWarriors (Reply 26): and a cash infusion will be huge in getting replacements for the MD-80's like you said. What do you want to bet that th
28 Post contains links Daus : Hmmmm..... This just in. http://www.jsonline.com/watch/?watch=1&date=8/13/2007&id=27696 Neither Northwest nor Midwest Air has specified what that leve
29 Post contains images Indy : They can try it in IND if they want. It won't be pretty. NW defends IND like they would one of their hubs. It would be great for entertainment.
30 JetJeanes : I wonder in Nwa will dump any a/c off to midwest..Like supplying them with and endless supply of slightly used dc-9,s and saabs..
31 TVNWZ : They have been in the airline business for quite some time. Pretty successful. TPG Capital (¡§TPG¡¨) is a top 5 global private equity investment
32 MCOflyer : This is going to be one fun show to see how thing play out. If NW ands over any a/c to YX it will be A320's or A319's. YX wants modern a/c not older a
33 Bobnwa : Two questions for you. Why did the management of YX support the TPG bid? Why does TPG's track recond of airline investments show just the opposite of
34 Flying_727 : Should we speculate as to which city AirTran may dump their new 737's? flying_727
35 Post contains images Lowecur : If TPG really believes that YX has great potential, why are they letting NWA in on the deal? $400M is peanuts for a company the size of TPG, and any i
36 TOLtommy : RRRRRRRIIIIIIIIIGGGGGGHHHHHHTTTTTTTT Ask anyone at Mesaba or Express I how passive NWA was when they only owned part of the airline..... I think the
37 Corsair2 : Great point! FL thought most of us were financially illiterate. FL lost this deal as a good portion of their offer was based on their stock price (wh
38 TOLtommy : Yet WN makes money consistantly, and YX is lucky to squeak out a small profit. Given your theory, it should be exactly the opposite! Why isn't it?
39 TZTriStar500 : This is a very interesting prospect which I give much credence with NWA involved. I bet there is a good chance that in 5 years, YX will be flying not
40 Boeing7E7 : Amen and pass the Brats! See ya AirTran.
41 JBo : I'm uncertain what everyone here thinks YX's business plan is as far as growth and expansion. I doubt for a minute that their plan is to keep the same
42 Itsnotfinals : If they had 2 offers and ended up getting maximum value for shareholders, that could hardly be seen as incompetant , do you have your arm-chair CEO l
43 787KQ : WTF? The most sensible thing if for TPG to flip it to a company like Air Tran or Continental. Midwest on its own doesn't make much sense and it isn't
44 SkyexRamper : I would love to finally see the ERJs come home and possibly fly them! If Airbuses come online, which I hope they don't, you very well might see MCI a
45 Post contains links Knope2001 : There’s been a lot of negative blowback from AirTran supporters about the Midwest sale to TPG on this and other boards, and I thought I’d address
46 OB1504 : NW wants modern aircraft, too, and they're the ones holding the purse strings, I would think that if NW ends up transferring any aircraft to YX, it w
47 Indy : They are in IND with a very limited number of flights. They tried 2x daily to LAX and 1x daily to SFO. NW decided to match it and since fly has dropp
48 JBo : I would, too ... and it seems more likely today than it did three years ago, and we don't even have an order on the books right now. I'm optimistic f
49 Azjubilee : TolTommy - NWA never pretended to be a passive participant in Pinnacle or Mesaba. How could they? They were directly involved in the daily operation o
50 TVNWZ : the entire Wisconsin and Missouri congressional delegation as well as state officials will endorse and lobby for this deal. End of story. Everything
51 NorthwestEWR : This is fantastic news and I can't wait to see what happens with TPG and Midwest. I'd love to see some new aircraft and some expansion so more people
52 HeavyMx1 : This was asked before but I dont think it has been answered, I belive this would be a good one for Knope2001 to go at. It has been stated the TPG is t
53 Knope2001 : Somehow I missed two sections that were supposed to be part of my post earlier this afternoon: “TPG is only in it for the money, and they’ll dump
54 Cloudboy : Plain and simple, folks - airline industry is changing, like it or not. People are getting tired of the same service from every carrier, and the only
55 Knope2001 : On additional thing to add. TPG may have found $16 to be expensive for Midwest, and they could take it or leave it. Northwest, on the other hand, was
56 Post contains images JBo : Agree with you on Midwest .... except that it's "Midwest" and not "MidWest" ... no camelcase
57 Knope2001 : Very kind of you to say...thanks JBo! Hopefully we'll sign another client in western MI soon and I can visit your airport again.
58 Boeing7E7 : Or they invest on condition that if AirTran's doom and gloom picture of Midwest occurs, then Northwest gets the assets and by extension and MKE hub.
59 Knope2001 : Yet another passage from my longer message that didn't get posted. I must have messed up using cut & paste since this was writting in Word and some se
60 DCA-ROCguy : On additional thing to add. TPG may have found $16 to be expensive for Midwest, and they could take it or leave it. Northwest, on the other hand, was
61 N911YX : How little you really know! Rush runs the country.
62 Jano : With Midwest and NWA codesharing in place there might be a place for MKE-AMS now on NWA B752. MKE-AMS is not any longer than DTW-FRA. And those NWA B
63 B757capt : Let me know when NW finds the crews to fly it.
64 Knope2001 : I think that's exactly their thinking. And it is an investment with value since they could eventually sell their stake.
65 Jano : Spring 2008
66 Cubsrule : There's a reason the 752 was only to be used on DTW-FRA in the summer. It would have a real hard time making it westbound in the winter. MKE-AMS is a
67 NW748i : Put that in your mouth and you'll taste bitter herbs too. I completely agree here. It's not like they would buy this airline just to make a huge loss
68 Cubsrule : Presumably, NW has a pretty good idea of what kind of results they're getting from the YX codeshare (they know how many miles they are giving to YX m
69 AvConsultant : I agree, look for YX to be absorbed into NW giving TPG an equity position in NW. The 717 will most likely end up with A's on the tails and the MD-80'
70 Cubsrule : You contradict yourself. If NW gains nothing from MKE, why would they eliminate YX? YX's presence keeps someone like FL from invading MKE (and, by ex
71 CitrusCritter : It's a combination of both, isn't it? It's very smart strategic planning on NW's part. They will keep YX around and expand the code-share arrangement
72 BillReid : I am missing something here? Why does a company make a 16$ cash offer for what has far less value. I suspect something is hidden or YX is to be torn a
73 AvConsultant : I did not contradict myself, I'll paste what you left out. NWA gains nothing with a MKE hub for it's geographically too close to DTW and MSP thus caus
74 Post contains images N908AW : It's gonna smell like a sour vineyard for about a few months around here. Well. NW never claimed they would be passive with either of those. And don'
75 N911YX : Perhaps you missed reading the entire release on this subject. NW Airlines will be a 'passive' partner and TPG will be the check writer with the larg
76 N911YX : And while we're on the subject of consultants, where's the buzz from the Boyd Group? Wrong again as usual. Why the media continues to use him as a tal
77 RJNUT : there just realy isnt that much to begin with...its pretty much all or nothing re: YX! so i dont think you're on to something in this regard!
78 Bobnwa : TPG has already been a major investor in Northwest, when it was called Bass Bros.They were involved financially in the leveraged buyout of NWA by Wil
79 Mainland : And here's a taste of the first response by a major shareholder. This may turn out to be just one of the institutional investors blowing off steam, no
80 CitrusCritter : Wow, shows we all weren't as smart as we thought in assuming the institutional investors would "take the money and run." The tax benefits of the AirT
81 TVNWZ : double post of letter above...[Edited 2007-08-14 15:25:14]
82 Daus : Heh, heh.... the problem with the "jump in a force a sale" private equity players, is that they don't hold long enough to get favorable tax treatment
83 Post contains links KarlB737 : Here's why.............. Courtesy: Minneapolis Star-Tribune Northwest Protects Turf With Midwest "Northwest pushed aside hostile bidder AirTran Airwa
84 Jano : Then we can compare DUS-DTW 4049 mi and MKE MKE-AMS 4073 mi.... Of course we need to wait until winter when we see how many fuel stops NWA's B752s ma
85 Daus : This press release is just nonsense..... The reality in the world of M&A is that the bid with a significant stock component needs to be significantly
86 Crewchief : This shareholder's response is very curious. If AAI felt the same way, MEH would have been worth $16/share or more to them. By not increasing their b
87 Cubsrule : I think this is absolutely correct, and FWIW, NW and YX moved in this direction already with the FF partnership and the codeshare. Both carriers reco
88 EXAAUADL : Temporarily, though being partially owned by NWA will allow NWA to restrict YX's growth. If you believe FL's presentation, as I do, MKE is ripe for L
89 Mainland : Agreed. This is just fund managers complaining and whining over a deal that, to them, went south and won't garner them the return they expected. Ho h
90 Bobnwa : What numbers back that up? "Lack of progessive thought" on whose part? Give me a break.
91 Isitsafenow : Soooo........does this mean the airTran "folks" who just joined the Midwest board will be replaced by NW "folks"? safe
92 SY738fan : While this does seem to be a defensive move on the part of NW and their new ownership position definitely gives them some leverage to control how YX
93 Sllevin : They are called "owners." let's be clear about that. And the record for airlines that Northwest has been involved with the ownership of in recent yea
94 Bobnwa : Please explain which airlines these are, and the circumstances.
95 N1120A : Anyone else think that this private equity deal could end up being a way of stripping the assets? AirTran gets more 717s, Allegiant cherry picks some
96 RJNUT : NO! Sheesh!
97 Bobnwa : Is your remark some sort of a conspiracy theory, that has TPG, AirTran, YX BOD, and Northwest secretly gathering to plan the dismantling of YX. I don
98 N1120A : No, it is a very viable idea in the world of private equity. They are looking to make money with the airline, and if that means selling it off in pie
99 CitrusCritter : A possibility over the long-term perhaps if YX does not perform to TPG's expectations or is incapable of doing so. There is no logic in paying $16/sh
100 Itsnotfinals : If you could do an asset analysis of Midwest's MD-80's (30% less efficent than 737NG's) as well as the very limited utility of B717's ( only about 5
101 Post contains links TVNWZ : Not so fast... Press Release AirTran Holdings, Inc., Presents New Offer For Midwest Air Group, Inc. - After Urging from Midwest Shareholders, AirTran
102 Post contains links TVNWZ : Apparently MHI was just waiting for it to come in.... Midwest Air Group, Inc. 6744 South Howell Avenue Oak Creek, Wisconsin 53154 414-570-4000 www mid
103 N1120A : There is, however, a carrier in the US that uses them as their fleet backbone. But significantly cheaper.
104 Post contains images JBo : Hawaiian?
105 N822ME : If it's private, there is no elected board of directors. The current directors would be out.
106 Boeing7E7 : Apparently, if you don't follow the sheep to the conclusion that LCC's are the only way to go, then you are not progressive.
107 Cloudboy : You guys are missing the whole point of this. Air Tran is doing the traditional thing, that most of you are also doing. Your thinking of your passenge
108 Indy : I don't believe the YX board has any obligation to listen to any additional offers from FL. FL gave their best offer. Someone else came in and beat it
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