n917me
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 5:52 pm

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.
 
MattRB
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 6:08 pm

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.
 
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tjwgrr
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 7:06 pm

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.
 
justplanenutz
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 7:26 pm

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]
 
n917me
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 7:35 pm

I really do not see an anti trust issue being brought up.
 
justplanenutz
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 7:45 pm

Given how hard FL fought and how angry their release was, you can bet they'll pursue it.
 
KarlB737
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 7:59 pm

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
 
KarlB737
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 8:15 pm

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
 
SkyexRamper
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 8:18 pm

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.
Good Luck to all Skyway Pilots! It's been great working with you!
 
drgmobile
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Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 9:17 pm

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?
 
DAYflyer
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RE: Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 9:27 pm

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
 
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modernArt
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RE: Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 11:37 pm

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!
 
luisca
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RE: Midwest Accepts All Cash Offer From TPG!

Mon Aug 13, 2007 11:50 pm

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
If it ain't Boeing (or Embraer ;-)) I ain't Going!
 
jetjeanes
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:03 am

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
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itsnotfinals
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:04 am

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]
Speedbird 178 Heavy, FINAL runway 27L
 
ikramerica
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:08 am

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.
 
bigjku
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:22 am

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.
 
ikramerica
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:28 am

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.
 
bigjku
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:36 am

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.
 
luisca
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:38 am

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.
If it ain't Boeing (or Embraer ;-)) I ain't Going!
 
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TZTriStar500
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:43 am

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.
 
itsnotfinals
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:46 am

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
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JBo
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 12:47 am

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.
 
luisca
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:02 am

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.
If it ain't Boeing (or Embraer ;-)) I ain't Going!
 
N501US
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:15 am

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.....
 
masseybrown
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:37 am

Quoting Luisca (Reply 23):
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'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 Midwest, whose hub is bracketed by MSP and DTW and can grow only by stealing mostly NW traffic. MKE would have seen growth with FL in the picture; it's unlikely with NW lurking.
 
MUWarriors
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:37 am

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.

Good luck in BK court YX

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 off the hostile take-over bid. These things don't scream bankruptcy to me.

Quoting Luisca (Reply 19):
The problem is that if they dont grow they will be slowly killed by the larger carriers.

Why? NW failed in it's last attempt to do so, no other airline seems to be knocking on MKE's door. FL is the only airline who currently flies to non-hubs (well YX too, but MKE is their hub) NW, US and F9, are the only other airlines flying mainline to MKE (US has 1 or 2 a day, F9 has 2). If YX were such a weak carrier I would expect to see a little more than that there.

Quoting JBo (Reply 22):
Why so many here have to be negative about this buyout, I have no idea.

Much of it is sour grapes. I am not completely sold that this is ideal, but after having done some research on TPG I think they are in fact in it for the longhaul, and a cash infusion will be huge in getting replacements for the MD-80's like you said.

Quoting Luisca (Reply 23):
HA, they can not work with the current bussines plan, things have to drastically change or its BK court.

Please explain this one better. Don't give me FL rhetoric, explain how an airline that has been profitable for 5 of the last 6 quarters and who turned a profit last year is in need of a drastic change or they will wind up in BK. I'm not saying YX is perfect, or has the perfect business plan, but it seems to be doing OK for them.
 
tsra
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:46 am

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 the replacement aircraft will now be an Airbus... or an order of E170/175 or E190/195 to be flown as"YX" but on NW routes to circumvent NW's pilot union...

[Edited 2007-08-13 19:20:18]
 
daus
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:54 am

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 level of investment will be. Carol Skornicka, Midwest Air's senior vice president of corporate affairs, mentioned a 40% level in an interview today with WTMJ-AM (620), but later said she misspoke.

"I do not know at this time the terms of the agreement between (Northwest Airlines) and TPG other than NWA will have a minority position and be a passive investor," Skornicka said. "At one time it looked like it would be around (40 percent), but we honestly do not know at this time what it actually will be."
 
Indy
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 1:56 am

Quoting Tjwgrr (Reply 2):
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?

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.  Smile
Indy = Indianapolis and not Independence Air
 
jetjeanes
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 2:12 am

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..
i can see for 80 miles
 
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TVNWZ
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 2:17 am

Quoting TZTriStar500 (Reply 20):
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.



Quoting JBo (Reply 22):
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.

They have been in the airline business for quite some time. Pretty successful.


TPG Capital (¡§TPG¡¨) is a top 5 global private equity investment firm, with more than US$30 billion of committed equity capital under management. Portfolio companies controlled by TPG currently have combined revenues of more than $110 billion, operate in more than 140 countries and employ more than 500,000 employees. Since 1985, TPG and its Principals have had lead responsibility for more than 110 transactions, investing approximately $18.7 billion of equity capital across a number of different economic and credit cycles.

TPG is the most experienced private equity player in the airlines sector, with a strong track record of completing successful transactions across a wide range of industry sub-sectors. By partnering with strong management teams, TPG helps to drive transformational change.

„X Continental Airlines: In 1993 TPG, in partnership with Air Canada, brought Continental Airlines out of a Chapter 11 bankruptcy proceeding and helped drive the turnaround of the airline, resulting in expanded routes and increased employment. Continental Airlines is now the fifth largest carrier in the US.
„X America West Airlines: In 1994, TPG, in partnership with Continental, brought America West out of Chapter 11. In 2005, America West merged with US Airways and today is the sixth largest airline in the United States.
„X Ryanair: In 1996, TPG principals acquired a 20% stake and three board seats in Ryanair, then a family owned airline with eight aircraft. Today Ryanair has 107 aircraft and is the largest and most successful low cost carrier in Europe.
„X AerFi: In 1998, TPG acquired GPA Leasing (subsequently renamed AerFi Group), a major aircraft lessor. In 2000, AerFi was acquired by Debis AirFinance.
„X Hotwire: In 2000, TPG , in partnership with most major US Airlines, founded Hotwire, an online retailer of unpublished fares for travel products. Hotwire was subsequently sold to Expedia, Inc., for $750 million¡Xat the time, the highest cash price paid for an Internet company.
„X Gate Gourmet: In 2002, TPG acquired Gate Gourmet, a leading global airline catering company, out of the Swiss Air liquidation proceedings. Thousands of jobs were saved and the business was returned to profitability despite a decline in airline catering. TPG exited the investment in 2007.
„X Sabre Holdings: In 2007 TPG became an investor in Sabre Holdings. Sabre provides retail travel products, a leading global distribution system and technology solutions for the travel industry. Sabre includes Travelocity and other leading online brands.
„X Iberia: The firm is currently conducting due diligence on a possible acquisition of the Spanish air carrier.
 
MCOflyer
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 2:37 am

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/c.

Hunter
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bobnwa
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 2:53 am

Quoting Luisca (Reply 19):
TPG is out to make a quick buck and will rape the company clean

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 "raping the company"?
 
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flying_727
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 2:55 am

Should we speculate as to which city AirTran may dump their new 737's?

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lowecur
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 3:00 am

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 investment from a legacy carrier in this deal should raise a red flag to regulators. The recently signed codeshare is all smoke and mirrors to try and make the NWA investment look legit.

If the Feds don't throw cold water on this deal, then George Bush should turn over running the country to Dick Cheney. Oh, I forgot........Dick is running the country. That goes to show you, I just don't know Dick. Smile
 
toltommy
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 3:05 am

Quoting KarlB737 (Reply 7):

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

RRRRRRRIIIIIIIIIGGGGGGHHHHHHTTTTTTTT

Ask anyone at Mesaba or Express I how passive NWA was when they only owned part of the airline.....

I think the YX folks wanted to stay independent so badly that they jumped in bed with someone to save them. I hope the relationship works out!
 
Corsair2
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 3:10 am

Quoting Itsnotfinals (Reply 21):

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 (which has been quite bearish over the last year). An all cash deal by TPG is more of a sure thing for investor's who are in for a wild ride with the stock market and bad subprime loans.

One of the best aspects of YX financially is that they are not a low-fare airline & charge a fair market price. The low-fare airlines like FL & WN have been helping erode the profits of legacy carriers. For example, WN is advertising MDW-LAS for $59 each way. The fuel costs alone on a per seat basis come close to that.

Hopefully the industry in the midst of this will control the available seat miles (ASM's) out there by reducing capacity to allow raising fares and the profit of the industry.

Likely FL now will not be able to support taking on 100 737NG's and look to selling them off to other interested parties. Maybe YX could buy some of these as MD-80 replacements.
"We have clearance Clarence. Roger, Roger. What's our vector Victor?"
 
toltommy
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 3:43 am

Quoting Corsair2 (Reply 38):
One of the best aspects of YX financially is that they are not a low-fare airline & charge a fair market price. The low-fare airlines like FL & WN have been helping erode the profits of legacy carriers. For example, WN is advertising MDW-LAS for $59 each way. The fuel costs alone on a per seat basis come close to that.

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?
 
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TZTriStar500
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 3:54 am

Quoting TSRA (Reply 27):
What do you want to bet that the replacement aircraft will now be an Airbus... or an order of E170/175 or E190/195 to be flown as"YX" but on NW routes to circumvent NW's pilot union...

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 nothing but silver colored E-jets.

Quoting Indy (Reply 29):
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.

What do you mean? They are already in IND and fly to many of the same destinations.

Quoting TVNWZ (Reply 31):
They have been in the airline business for quite some time. Pretty successful.


TPG Capital (¡§TPG¡¨) is a top 5 global private equity investment firm, with more than US$30 billion of committed equity capital under management. Portfolio companies controlled by TPG currently have combined revenues of more than $110 billion, operate in more than 140 countries and employ more than 500,000 employees. Since 1985, TPG and its Principals have had lead responsibility for more than 110 transactions, investing approximately $18.7 billion of equity capital across a number of different economic and credit cycles.

TPG is the most experienced private equity player in the airlines sector, with a strong track record of completing successful transactions across a wide range of industry sub-sectors. By partnering with strong management teams, TPG helps to drive transformational change.

„X Continental Airlines: In 1993 TPG, in partnership with Air Canada, brought Continental Airlines out of a Chapter 11 bankruptcy proceeding and helped drive the turnaround of the airline, resulting in expanded routes and increased employment. Continental Airlines is now the fifth largest carrier in the US.
„X America West Airlines: In 1994, TPG, in partnership with Continental, brought America West out of Chapter 11. In 2005, America West merged with US Airways and today is the sixth largest airline in the United States.
„X Ryanair: In 1996, TPG principals acquired a 20% stake and three board seats in Ryanair, then a family owned airline with eight aircraft. Today Ryanair has 107 aircraft and is the largest and most successful low cost carrier in Europe.
„X AerFi: In 1998, TPG acquired GPA Leasing (subsequently renamed AerFi Group), a major aircraft lessor. In 2000, AerFi was acquired by Debis AirFinance.
„X Hotwire: In 2000, TPG , in partnership with most major US Airlines, founded Hotwire, an online retailer of unpublished fares for travel products. Hotwire was subsequently sold to Expedia, Inc., for $750 million¡Xat the time, the highest cash price paid for an Internet company.
„X Gate Gourmet: In 2002, TPG acquired Gate Gourmet, a leading global airline catering company, out of the Swiss Air liquidation proceedings. Thousands of jobs were saved and the business was returned to profitability despite a decline in airline catering. TPG exited the investment in 2007.
„X Sabre Holdings: In 2007 TPG became an investor in Sabre Holdings. Sabre provides retail travel products, a leading global distribution system and technology solutions for the travel industry. Sabre includes Travelocity and other leading online brands.
„X Iberia: The firm is currently conducting due diligence on a possible acquisition of the Spanish air carrier.

Thanks for the history lesson, but I already knew this. I meant that they are simply not just investing in YX because they thought it would be nice, but have a much larger plan and end game in mind that we are not privy to. This is not a ringing endorsement of YX's business plan by any means. Groups like TPG get in, shake up and restructure, make a resturn on their investment, and then get out. Look at TZ and Matlin Patterson. There was no free flowing cash and they placed signifcant expectations on becoming a restructured and profitable operation with existing assets. Just because TPG has deep pockets doesn't mean they are automatically going to shell out big bucks for shiny new airplanes and wild new destinations. There will be a period of time where the current YX management will have to prove themselves and demonstrate consistent results or they'll be out. I expect TPG will be behind their shoulders all the way.

Quoting Bobnwa (Reply 34):
Why did the management of YX support the TPG bid?

To save their own butts. From what I have read, they get to stay. Don't think that certain management types do not act in their own self interest over the company. Nobody wants to lose their jobs, even incompetent management.
35 years of American Trans Air/ATA Airlines, 1973-2008. A great little airline that will not be soon forgotten.
 
Boeing7E7
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 4:10 am

Amen and pass the Brats!

See ya AirTran.
 
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JBo
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 4:50 am

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 minimal expansion using CRJs.

The biggest reason YX hasn't had major expansion over the past few years was the lack of financial support to do so.

With TPG on board, I can see YX placing that much-needed order for aircraft to replace and expand the MD-80 fleet, be it a 737 or A320 series aircraft, to add mainline destinations to the network. The ability to expand the fleet, and thus grow the company, has been YX's greatest hurdle.

This may also bode well for the regional side, allowing YX the means to potentially order aircraft for Skyway to bring 50-seat flying back in-house (which is a rumor of some sort that I had heard ... that the SkyWest contract was intended as something of a stop-gap measure until the financial support to expand Skyway came along, at which point the SkyWest flying would be gradually phased out in favor of expanded Skyway flying.)

Beyond the hurdles of aircraft acquisition and, thus, route expansion ... there is nothing particularly wrong with YX's business plan. They still offer a product that's a cut above the legacy and low-cost carriers ... even with a 50/50 cabin split of Signature seats and Saver seats (which I would venture to guess the MD-80 replacements would also take on this configuration), the product remains unique.

The days of the full first-class cabin, fine china, and filet mignon are long gone ... but the aboveboard customer service, and cabin comfort that still remains a step above the rest will live on.

Anything may be possible, but I'm fairly certain that with TPG's support, YX will finally be able to do what it's wanted to for quite some time.
I'd take the awe of understanding over the awe of ignorance any day.
 
itsnotfinals
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 5:00 am

Quoting TZTriStar500 (Reply 40):
Nobody wants to lose their jobs, even incompetent management.

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 license?
Speedbird 178 Heavy, FINAL runway 27L
 
787kq
Posts: 377
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 5:02 am

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 a good fit for NW in the long run given their hub locations. I really doubt there will be a stand-alone Midwest in a few years, although if it changes itself into a Virgin America or an Air Tran, it might survive.
 
SkyexRamper
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 5:05 am

Quoting JBo (Reply 42):
This may also bode well for the regional side, allowing YX the means to potentially order aircraft for Skyway to bring 50-seat flying back in-house (which is a rumor of some sort that I had heard ... that the SkyWest contract was intended as something of a stop-gap measure until the financial support to expand Skyway came along, at which point the SkyWest flying would be gradually phased out in favor of expanded Skyway flying.)

I would love to finally see the ERJs come home and possibly fly them!

Quoting JBo (Reply 42):
With TPG on board, I can see YX placing that much-needed order for aircraft to replace and expand the MD-80 fleet, be it a 737 or A320 series aircraft, to add mainline destinations to the network.

If Airbuses come online, which I hope they don't, you very well might see MCI as a crew base.

The best question of all is....I wonder of the new FL placed BOD members voted and if they got an ear full from big man Joe.
Good Luck to all Skyway Pilots! It's been great working with you!
 
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knope2001
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 5:40 am

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 some of them here. These comments are paraphrased and not particular quotes.

“Shareholders support the AirTran bid, and Midwest is going to be hit with lawsuits for disregarding strong shareholder sentiment.”

Midwest’s large shareholders ultimately support whatever sale gets them the most money – not specifically the AirTran sale. They mostly got onboard when the MEH stock became “in play” because a hostile takeover like this usually means an eventual sale at some point. They view it as an opportunity to make money and don’t care who ultimately buys. Octavian in particular made a lot of heat about Midwest’s failed business plan and their need for the undeniable synergies and promise of AirTran’s plan. Meaningless propaganda that some AirTran backers happily ate up. Few seem to remember that when Octavian first loaded up on MEH stock they praised Midwest, their management, and all their strengths, claiming that MEH was worth more and that Midwest should not accept AirTran’s bid unless the offer was raised substantially. Also meaningless propaganda meant to talk up the value of MEH and increase the bid. When the bid went up, suddenly MEH was at death’s door according to them. But people, including some in the MKE media, bought the propaganda as objective analysis. It was anything but objective analysis.

Octavian and others have to be quite pleased at the purchase for $16, and even more pleased that it is in cash. The AAI bid made AAI stockholders out of MEH stockholders, not something that short-term hedge funds want. This way Octavian and others are out clean. And if any MEH holder feels short-changed by being forced to cash out and not get AAI stock, they can sink some of their payout into purchasing AAI stock. I’m sure they’d welcome a price bump on increased demand.


“There’s no way that the Department of Justice and the Department of Transportation will approve this, and then AirTran will swoop in and pick up the pieces”.

Using the latest monthly available figures from the MKE website, here’s the MKE market share:

57.3% Midwest/Midwest Connect
13.1% Northwest
6.7% AirTran

YX+NW would have 70.4% market share as an aligned, non-merged entity with code sharing

YX+FL would have 64.0% market share as a single carrier

I for one think the market share difference between 64.0% and 70.4% as immaterial in an anti-trust perspective. If 64.0% is not too much MKE concentration for AirTran to buy Midwest, then 70.4% YX+NW isn’t likely to be too much MKE concentration either. Outside of MKE itself, YX partnering with NW does not drastically remove competition in the upper Midwest. Midwest, in most of their competitive feeder cities (ATW, GRR, DSM, OMA, MSN, etc), is at or near the bottom in market share usually behind United, American, Delta and others.

And FYI, AirTran, Frontier, and USAirways (also considered an LCC now since America West bought them and took their name) together have a 13.0% share in MKE. So MKE is not left without any LCC service… 1 of every 8 passengers flew an LCC last month.

I have talked more about why I don’t think the DoJ will veto this deal in reply 79 in this other thread:
AirTran Allows YX Offer To Expire (by N822ME Aug 13 2007 in Civil Aviation)

“Northwest can’t even fly their own schedule. Good luck Midwest…look for cancelled flights and horrible service.”

Midwest will still have the same employees, the same corporate culture, the same unions, etc, etc. They are not merging into NW, and the troubles at NW are internal. The stability that this sale brings to Midwest can only help ease the minds of worried employees and improve employee retention. NW is not even the majority stakeholder (exact stake is not finalized) and is stating their relationship is a passive one. If NW wanted to control and absorb Midwest they could just as easily have made a bid for them rather than being a passive partner in an entity being created by and equity firm. Northwest key interest was keeping AirTran from taking over MKE, and that’s what this accomplished.


“Milwaukee is the big loser here. They’re losing all the promised AirTran service and AirTran’s low fares”

This goes back to a central point against the acquisition in the first place. AirTran’s promises were viewed by many as simply too good to be true. The promise of frequent jet nonstops to White Plains, Richmond, Albuquerque, Wichita, Vancouver and others was very likely an unsustainable one. In conjunction with this is AirTran’s spotty track record in sticking with their expansion plans, as well as their record of dropping markets out of season, even in city pairs that seem to contain good year-round business traffic. AirTran’s record is in chasing seasonal traffic peaks and being less concerned about serving steady business demand. Even from their huge Atlanta hub they don’t serve Seattle year-round. Yet they promise multiple daily MKE-SEA and plenty of other markets out of Milwaukee that just wouldn’t last.

AirTran’s promised plans for Milwaukee simply were not very credible. Were they to have succeeded in buying Midwest, the actual outcome for MKE by, say 2010 would likely be far less than what Midwest has today.


“This is a sad day for employees, and they had better face up to layoffs and cutbacks.”

The buyout and intact emergence of Midwest gives something to employees they have not had in quite some time: stability. More than a few employees I have talked with over the last months have spoken of a gnawing feeling of dread and uncertainty over their futures, and that is now coming to and end. Some will of course jump in at this point and paint a gloom-and-doom portrait of Midwest as failing and that TPG will swoop in and force drastic changes. Well, we don’t know for sure what will happen, but we do know that the plan is for Midwest to remain intact, which is more than the AirTran bid would have done. TPG’s track record is not one of gutting and selling their airline and travel acquisitions. Quite they opposite, they have helped their holdings flourish. If TPG did not see at least a reasonable potential for Midwest to succeed without merging, they would have stayed out.

I’m sure there are contrarians and exceptions out there, but all in all I suspect most Midwest employees are happy that the AirTran hunt is finally coming to an end.


“Midwest will continue to stagnate and die a slow death, ultimately going through bankruptcy where AirTran will acquire the 717’s on the cheap.”

This one, along with similar threats and slams from AirTran over the past months, drives me particularly mad because it is demonstrably false. For the most recent month (July) Midwest’s RPM’s were 19% higher than last year. And that is Midwest mainline, which does NOT include Skywest. Including YX* (inhouse Skyway and outsourced Skywest) RPM’s were 25.9% higher than last year. Midwest’s traffic has mushroomed over the past handful of years, surpassing the growth of most everybody except a few low-cost carriers (including AirTran). As for bankruptcy, it’s amazing that after weathering heavy losses for a few years and averting bankruptcy, it is now when Midwest is making money in most quarters that the chains of bankruptcy court are being rattled. Indeed Midwest’s overly-optimistic earnings projection for 2007 are far from being met, but there’s a very wide gulf between lowering earnings targets and bankruptcy liquidation. I’m not saying that reduced earnings results are not a point of concern or that they are meaningless, but suggesting Midwest is bound for bankruptcy is simply without grounds.

The stability and financial shot-in-the-arm that TPG brings is very likely to improve Midwest’s ability to obtain the M80 replacements, the airframe which is regarded as Midwest’s growth vehicle. Adding a few M80’s is fine for stopgap growth, and the CRJ’s and added FRJ’s are helping year-over-year growth as well. But longer term growth depends on additional mainline aircraft. Who wanted to cut a deal with Midwest for 737’s or Airbus when they didn’t know if Midwest was going to be around in 6 months? Now the stability and financial resources of TPG will help make the M80 replacement airframe a reality. And it may even lead Midwest to bring the RJ’s back in house. That’s likely something that wouldn’t happen had Skywest been part of the buying consortium.

-------------------

Certainly there’s a great deal of speculative talk at the moment, and that includes me. However TPG’s track record with airline / travel industry companies is a good one. Time will tell how this all turns out, but many feel this is in balance a far more positive outcome in the long run than AirTran succeeding in their takeover attempt. No nonstops to Rochester NY (for eleven months or however long they would last), and no $29 fire-sale fares to Akron. But instead we have a known entity, a locally-based company committed to the Milwaukee market in part because Milwaukee is too core to their business to abandon. And we have this company with renewed stability and financial resources to help it succeed with the backing of the same company which turned Continental, America West and others out of far worse jams that Midwest faces.
 
OB1504
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 5:42 am

Quoting MCOflyer (Reply 32):
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/c.

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 will be newer-build DC-9s and maybe an older A319/320 or so.
 
Indy
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 6:11 am

Quoting TZTriStar500 (Reply 40):
What do you mean? They are already in IND and fly to many of the same destinations.

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 dropped both of those routes to 1x daily seasonal. Outside of ATL the only routes FL maintains year round from IND is MCO, TPA and RSW. Yields to MCO and TPA are just horrible. In November I can one way to TPA for $49. $64 to MCO.

We'll see if FL can hang on to LAS through the summer. They should be able to . LAS was the #1 destination from IND a while back. Price has driven down demand a bit but the number of passengers going to LAS are still high and not including FL there are only 3x daily between NW and WN. Lets see if FL has the intestinal fortitude to add routes like DFW, PHX, SEA or even something to a NW hub city like MSP. Lets see them go into US territory and try PHL or maybe go into LGA or BOS. Why not CLT?

I'll change my tune if FL ever manages to hit 20 flights a day here.
Indy = Indianapolis and not Independence Air
 
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JBo
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RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 6:19 am

Quoting SkyexRamper (Reply 45):

I would love to finally see the ERJs come home and possibly fly them!

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 for Midwest's future. Cautiously optimistic ... but optimistic nonetheless.

Quoting Knope2001 (Reply 46):


Throughout this whole "battle," no one else has been able to provide better statistical analysis and level-headed commentary than you have. I think that's won the respect of many users on this forum on both sides of the fence.
I'd take the awe of understanding over the awe of ignorance any day.
 
azjubilee
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Joined: Sat Apr 29, 2000 5:26 am

RE: Midwest Accepts All Cash Offer From TPG!

Tue Aug 14, 2007 6:25 am

TolTommy -

NWA never pretended to be a passive participant in Pinnacle or Mesaba. How could they? They were directly involved in the daily operation of both airlines. This is a far different deal and incomparable. IMO NWA will be a financial supporter and execute control in the form of pressure. If anything, I see this relationship developping into something like what they did with CO several years ago. For now, it seems Midwest stays Midwest.


AZJ

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