paladin87
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NWA's 30% Airtran Stake

Thu Aug 23, 2007 2:05 am

Northwest had(as recently as 1995) a 30% stake in Airtran does anyone know when this was sold?
 
MKENut
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 3:33 am

What is your source for this information?
 
D950
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 3:40 am

I thought they had a "passive" piece of Midwest.
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airtran737
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 3:52 am

From Wikipedia

The airline was established in June 1993 and started operations on October 26, 1993 as Conquest Sun Airlines. It was renamed AirTran Airways in August 1994.

Following objections from Northwest Airlines to AirTran Airways' entry into the jet carrier business, its parent company signed an agreement with Northwest for the spin-off to shareholders of the non-airline businesses. They became part of a new holding company, AirWays Corporation, which also owned Mesaba Airlines.

In July 1997, AirWays Corporation announced a merger with ValuJet Airlines. In one of the U.S. airline industry's first reverse mergers, ValuJet was re-named AirTran Airways in 1997. This was done because the firm's public image never recovered from the crash of ValuJet Flight 592. On September 24, 1997 the parent company became AirTran Holdings Inc, and operations under new management began on September 1, 1998.

It was Mesaba, not NW
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bobnwa
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 3:55 am

Quoting AirTran737 (Reply 3):
It was Mesaba, not NW

Yes but NWA owned a good part of Mesaba at the time.
 
atrude777
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 4:05 am

This tid bit of information was actually discussed in the recent distribution of Airways in theit magazine, and they focused a part on the Air Tran/Mesaba Deal.

Quite interesting story to read.

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DAYflyer
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 4:06 am

Stange bedfellows for sure. Certainly the first thing I have learned of the structure of the first AirTran. Interesting information, thanks for posting this.
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Mainland
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 4:22 am

Northwest never held a 30% stake in the AirTran we know today. The AirTran name was born out of Mesaba, which in the early 90's formed a new holding company they named AirTran Corp. Northwest exercised previously issued warrants and acquired a 29.7% interest in the newly named AirTran Corp. Shortly thereafter AirTran Corp the holding company made its jet operations based at MCO (which would become AirTran as we know it today) into a wholly owned subsidiary. AirTran Corp then spun off the subsidiary to all its shareholders except Northwest and renamed itself Mesaba Holding. Northwest maintained its 29.7% interest in Mesaba until they bought the remaining stake earlier this year.
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bobnwa
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 5:23 am

Quoting Mainland (Reply 7):
Northwest maintained its 29.7% interest in Mesaba until they bought the remaining stake earlier this year.

Correct except for this part. At the time of the NWA and Mesaba bankruptcies, NWA had sold its entire share. Early this year NWA did buy all of Mesaba.
 
paladin87
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 6:10 am

This is from NWA.com History section

March 8 Northwest Airlines, Inc. and AirTran Corporation reach a preliminary agreement for Northwest to increase its ownership of AirTran to 30%. AirTran is the parent of Mesaba Aviation, Inc., which operates as Northwest Airlink at Detroit and Minneapolis/St. Paul.
 
paladin87
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 6:16 am

I think they have Mesaba and Aitran crossed. I believe Airtran was part of Mesaba, not the other way around.
 
bobnwa
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 6:33 am

Quoting Paladin87 (Reply 10):
I think they have Mesaba and Aitran crossed. I believe Airtran was part of Mesaba, not the other way around.

You are right, AirTran was part of Mesaba, not the other way around.
 
Mainland
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 11:28 am

Quoting Bobnwa (Reply 8):
At the time of the NWA and Mesaba bankruptcies, NWA had sold its entire share.

Everything I see Mesaba reported (annual proxy statements) shows Northwest maintaining it's ownership throughout bankruptcy.

Quoting Paladin87 (Reply 10):
I think they have Mesaba and Aitran crossed. I believe Airtran was part of Mesaba, not the other way around.



Quoting Bobnwa (Reply 11):
You are right, AirTran was part of Mesaba, not the other way around.

While AirTran was created within Mesaba, the overall parent holding company they created at the time was AirTran Corp. This is why the NWA history says they reached an agreement with AirTran.
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TZTriStar500
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RE: NWA's 30% Airtran Stake

Thu Aug 23, 2007 1:06 pm

The nwa.com history section is wrong as NWA never owned any part of AirTran Corp. either then or now. Also, when will people stop using Wikipedia as an absolute authority on anything factual.

In 1988 Mesaba created a holding company AirTran Corp. with Mesaba as its sole subsidiary. In 1994, AirTran purchased Conquest Sun Airlines based in Orlando. It was renamed AirTran Airways and operated as a low-fare carrier, but violated the NWA pilot scope clause. In 1995 to solve this problem, AirTran Airways was completely spun off and AirTran Corp renamed Mesaba Holdings. At that time, NWA took a 29.7% stake in the new Mesaba Holdings. Only in January of this year did NWA acquire the remainder of now MAIR Holdings during their respective bankruptcies. AirTran Airways was subsequently acquired by Valujet with AirTran the surviving airline.

Therefore, NWA never had anything to do with AirTran Corp or AirTran Airways.
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jetjeanes
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RE: NWA's 30% Airtran Stake

Fri Aug 24, 2007 12:46 am

Didnt Airtrans buy some shares of midwest in the hopes of the buyout
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