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travatl
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:00 am

first article, includes information on talks between CO and UA

http://online.wsj.com/public/us
1 Interview. 24 years. 3 Airlines.
 
USPIT10L
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:07 am

We've heard about how FL and YX would be a great fit for a long, long time. Do they really need to link up for real, I could've sworn most of those threads were pure speculation.
It's a Great Day for Hockey!
 
ORD Boy 2
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:11 am

can someone get the full text
 
travatl
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:12 am

I thought it was all speculation as well, but as we move into this new wave of consolidation, looks like all bets are off.
1 Interview. 24 years. 3 Airlines.
 
S5FA170
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:14 am

Bye Bye to Midwest's Signature Service if they merge - what a shame.

Additionally, what would AirTran do with Midwest Connect? AirTran has opposed having a regional operator within its brand - but the cities Connect flies to (most of them, anyway) could probably not maintain service on the 717 and 737-800.

-Tony
Prepare doors for departure and cross-check.
 
steeler83
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:48 am

Quoting USPIT10L (Reply 1):
We've heard about how FL and YX would be a great fit for a long, long time. Do they really need to link up for real, I could've sworn most of those threads were pure speculation.

They do have similar fleets, both big time 717 operators... Yet, if they DO merge, that would solve the problem of which airplane to go with when replacing the MD80s... FL also has 737 aircraft...

Do I see such a merger happening? I highly doubt it... The service should be interesting... leather interiors, savor and signature service, xm radio, etc... How about the regional carrier, skyways?

This would give the merged carrier hubs in ATL, MKE, and MCI, and focus cities in MDW, IND, and BWI, I am sure...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
airtran737
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:57 am

Oh how the folks at YX will hate this when they read it. It's been rumored for years, but they have held stead fast. I hope it happens. More flights to non-rev on. FL and YX are a perfect fit. Add about 30 more seats to the 717's and dump the Mad Dogs in the desert. Still, I'll believe it when I see it.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
RL757PVD
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:58 am

It would be interesting if FL took the signature product and put it allongside the regular product (with higher fares of course) on routes like:
ATL-LGA
ATL-DFW
ATL-EWR
ATL-BOS
BOS-MDW
EWR-MDW
LGA-MDW
ATL-DCA

You can bet DL would probably respond with something simmilar ala AA and Legend.
Experience is what you get when what you thought would work out didn't!
 
kstateinALB
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:08 pm

This could be a great merge, especially for cities that dont have service by either irline. This could branch them out to mid-size cities and get LCC service to ATL, or other cities. I like it.
 
isitsafenow
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:10 pm

Oh KARLB737........Remember our power meeting at the LAN Hooters?
I told you......
Next on the suckemup list is either Spirit or Alaska.....
safe  listen 
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mke717spotter
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:13 pm

I hope it doesn't happen. Hasn't YX posted a couple of profits lately? I wouldn't YX to be gone away with when suddenly things are looking up for them.
Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
 
COERJ145
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:17 pm

If this goes through, I better take a day trip on YX to try their signature service before its gone.
 
jpetekyxmd80
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:17 pm

"The corporate parent of Midwest Airlines Inc. (MEH) has spurned a $288 million buy-out offer from AirTran Holdings Inc. (AAI), but AirTran still hopes to acquire Midwest in order to build a larger, low-cost airline.

The offer to Midwest Air Group Inc. was at $11.25 a share, according to a source familiar with the situation. Oak Creek-based Midwest Air's stock closed Tuesday at $9.08, down 43 cents a share.

The offer - a mix of cash and stock - totaled $288 million, based on the number of outstanding shares. With debt assumption, the offer's value was around $311 million, said the source, who spoke only on the condition that he not be identified.

The offer was made in October. Midwest Air rejected the offer last week, after a Dec. 6 board meeting."

Source: Milwaukee Journal Sentinel
The Best Care in the Air, 1984-2009
 
airtran737
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:19 pm

AirTran has a lot of money in the bank. They will come at YX hard, possibly a leveraged buyout. If FL really wants YX they'll get them.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
MSYtristar
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:27 pm

It would be an excellent move for FL....new markets, more 712's, more name recognition, etc.

YX and FL have route system which complement each other nicely.
 
Mikey711MN
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:45 pm

I see MKE to gain a lot from this, with exception of perhaps losing some service to small cities because, quite frankly, I'm not sure how they'd fit into a merged FL-YX low-cost carrier.

MKE-SEA (1x737 daily)
MKE-SFO (year round 1x737)
MKE-HOU (1x717 daily)
MKE-SAT (1x717 daily)

...or perhaps even more if they can make it a reliable hub and connect traffic effectively through it.

MKE-MCI
MKE-MSP
MKE-ATL
MKE-LGA
MKE-BOS

...and others would become nice multiple-trips-daily service for them.

Yes, the signature service is nice and the region (i.e. Milwaukee and northern IL folks) are very loyal thereto, but FL puts together a nice low-cost product that might stimulate some growth in these existing markets with lower fares.

Good luck to them in a merger or otherwise!
-Mike
I plan on living forever. So far, so good...
 
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knope2001
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 12:58 pm

It will be interesting to see if AirTran can somehow force Midwest to accept. So far it does not appear Midwest is interested, and Wisconsin has some pretty solid anti-hostile-takeover legislation in place.

I suspect AirTran is going public with this now (as opposed to past offers) in an attempt to pressure Midwest to change their mind. I guess we'll see.
 
flyibaby
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:07 pm

My question is if this goes through, will the FL/F9 "marketing agreement" stay status quo?
 
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TVNWZ
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:07 pm

$311-Million for basically 25 717s and a northern hub, if they want it. Not a bad price.
 
N353SK
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:09 pm

YX is a stubborn, stubborn airline. They are far too proud to get rid of the signature service they worked so hard to create. Management will go down with the ship before they even consider selling to FL.
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:24 pm

Quoting N353SK (Reply 20):
YX is a stubborn, stubborn airline. They are far too proud to get rid of the signature service they worked so hard to create. Management will go down with the ship before they even consider selling to FL.

Are you implying that they would let the airline fail rather than sell? Well THAT would be the responsible thing to do, now wouldn't it?  Yeah sure

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
eraugrad02
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:29 pm

it will def. give airtran another hub in a good location.
Desmond MacRae in ILM
 
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knope2001
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:30 pm

Quoting PlanesNTrains (Reply 22):
Quoting N353SK (Reply 20):
YX is a stubborn, stubborn airline. They are far too proud to get rid of the signature service they worked so hard to create. Management will go down with the ship before they even consider selling to FL.

Are you implying that they would let the airline fail rather than sell? Well THAT would be the responsible thing to do, now wouldn't it?

Fail? Only one of these two airlines made a profit in the most recent quarter, and it wasn't AirTran.

AirTran has been more profitable in recent years, but Midwest's financial prospects look better today than they have in years.

[Edited 2006-12-13 05:35:42]
 
airtran737
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:32 pm

Remember that it all comes down to money. If the share holders can make a good chunk of money by selling out to the Tran then they will. The only loyalty in a businessman's heart is to his own pocketbook. The shareholders will turn a nice profit in this deal.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
Cubsrule
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:36 pm

Quoting PlanesNTrains (Reply 22):
Are you implying that they would let the airline fail rather than sell?

But let's be honest about this, how close is YX to "failure?" They've been through much more dire situations, like the summer of 2003 when everyone thought that Chapter 11 was imminent.


More to the point, I'm not sure how well I see this working. FL and YX are both small carriers. They both operate with a large hub plus focus operations. But outside of that, there's not much similarity.

YX has always been a service-centered carrier. FL, though they do have a F product, has not.

FL does a ton of point to point flying. About 80% of their stations have service to more places than just ATL. YX, in contrast, has a grand total of one route not involving MKE or MCI (that would be OMA-DCA).

YX has AL, and that arrangement seems to work well. Could you see the FL name on EAS flying?

FL wants the 717s. That's all. A merger would mean the end of YX as we know it. That would be a damn shame.
I can't decide whether I miss the tulip or the bowling shoe more
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:37 pm

Quoting Knope2001 (Reply 24):
Fail?

I was simply trying to clarify what he was saying. What was meant by "Management will go down with the ship before they even consider selling to FL"?

I am not familiar with either carriers financials, other than that YX has certainly turned it around. Nonetheless, they have not grown appreciably, leaving them more vulnerable to a takeover. I'm not suggesting it, I'm not predicting it, and I'm not against it. It may be inevitable.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:38 pm

Quoting Cubsrule (Reply 26):
But let's be honest about this, how close is YX to "failure?"

See my comments above.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
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knope2001
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:38 pm

Quoting AirTran737 (Reply 25):
Remember that it all comes down to money. If the share holders can make a good chunk of money by selling out to the Tran then they will. The only loyalty in a businessman's heart is to his own pocketbook. The shareholders will turn a nice profit in this deal.

I wonder why AirTran management hasn't gone public with prior offers. With a lower stock price and weaker financial prospects a year or more ago, I'd think that an AirTran bid would have been more appealing then than now if brought public. I wonder why they didn't then.
 
Cubsrule
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:39 pm

Quoting PlanesNTrains (Reply 27):
onetheless, they have not grown appreciably, leaving them more vulnerable to a takeover.

I'm not sure about that. HP took over a bigger carrier. 2 years down the road, I think B6 will be offering us all an excellent object lesson in the perils of too much growth.
I can't decide whether I miss the tulip or the bowling shoe more
 
tys777
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:40 pm

Quoting PlanesNTrains (Reply 21):
Could WN step in and make a counteroffer for AirTran? This would perhaps give them some debt to fend off a raid, get them Atlanta, kill off a decent competitor, and secure some nearterm 737 slots/options. 717's? For now, they'd stay to continue their role on the former AirTran routes.

Eventually, operations would be altered to reflect the WN way of doing business, and some cities would be dropped. The 717's would be able to be phased out over say a five year period, with WN possibly ordering the 190 or something (giving them more debt).

WN has shown themselves to be opportunistic, and they have outmaneuvered AirTran before. Why not round two?

-Dave

As a big WN fan, I would love that. I think other LCC's like B6 might want something like to go through. It would give them less compition on potential routes that they might want to open in future. IF that were to happen, Maybe B6 would go after NK.

I love being able to speculate like this.
It makes life a hell lot more fun.
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:40 pm

Quoting Knope2001 (Reply 29):
I wonder why AirTran management hasn't gone public with prior offers. With a lower stock price and weaker financial prospects a year or more ago, I'd think that an AirTran bid would have been more appealing then than now if brought public. I wonder why they didn't then.

Desperation? Maybe they see the writing on the wall and want to be the acquirer and not the acquiree. Just a thought.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
Cubsrule
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:42 pm

Quoting PlanesNTrains (Reply 28):

See my comments above.

 checkmark  You posted as I was writing.
I can't decide whether I miss the tulip or the bowling shoe more
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:44 pm

Quoting Cubsrule (Reply 30):
I'm not sure about that. HP took over a bigger carrier. 2 years down the road, I think B6 will be offering us all an excellent object lesson in the perils of too much growth.

I'm not implying that they made a mistake. I'm simply stating the fact that they haven't grown appreciably in a number of years, and on the surface this would seem to make them more vulnerable to a takeover. I certainly may be wrong.

In regards to them taking over someone else - well, I'm not going to touch that one. As much as I don't see YX excited about being bought out, I also don't see them itching to buy anyone else.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
Cubsrule
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:52 pm

Quoting PlanesNTrains (Reply 34):
I'm simply stating the fact that they haven't grown appreciably in a number of years, and on the surface this would seem to make them more vulnerable to a takeover. I certainly may be wrong.

When I look at YX, I see a carrier which is very comfortable in a very limited niche. YX has always been pretty conservative growth-wise, but I'm not so sure that makes them ripe for a takeover. A coherent fleet growth/replenshiment plan seems to be in place (if we still don't have an order for 73Gs or 320s in 3 years, I may be biting my tongue on this), and this will likely lead to some growth. In the short term, though, it will be wait an see. And for many a loyal YX flier, that's just fine.

And no, I wasn't implying that I see YX acquiring anyone. The only acquisition that might have been interesting, and the time has passed, was C8...
I can't decide whether I miss the tulip or the bowling shoe more
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 1:56 pm

Quoting Cubsrule (Reply 35):
When I look at YX, I see a carrier which is very comfortable in a very limited niche. YX has always been pretty conservative growth-wise, but I'm not so sure that makes them ripe for a takeover. A coherent fleet growth/replenshiment plan seems to be in place (if we still don't have an order for 73Gs or 320s in 3 years, I may be biting my tongue on this), and this will likely lead to some growth. In the short term, though, it will be wait an see. And for many a loyal YX flier, that's just fine.

I agree with everything you say. I don't know if "ripe" versus "vulnerable" is mincing words, but I see your point.

I do like the fit - it's "pretty" from an enthusiasts perspective, and I think it could work out for AirTran if they did it right. I'm just not sure if they would.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
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northwestEWR
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 2:21 pm

I just flew YX today and it would be a real shame to do anything to YX's excellent product. Absolutely fantastic airline. Keep Midwest my Midwest !!!!
Northwest Airlines - Now You're Flying Smart
 
Boeing7E7
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 3:06 pm

Quoting USPIT10L (Reply 1):
We've heard about how FL and YX would be a great fit for a long, long time. Do they really need to link up for real, I could've sworn most of those threads were pure speculation.

Great fit? Bull.

Quoting KstateinALB (Reply 9):
This could be a great merge, especially for cities that dont have service by either irline. This could branch them out to mid-size cities and get LCC service to ATL, or other cities. I like it.

Diametrically opposed levels of service with crap prevailing. You must like crap.

Quoting AirTran737 (Reply 14):
AirTran has a lot of money in the bank. They will come at YX hard, possibly a leveraged buyout. If FL really wants YX they'll get them.

And then watch their hopeful market share implode. You LCC nut jobs don't get it do you? You're taking a specialty product and supplanting a crap product. Midwest survives because of product differentiation. AirTran isn’t even Wal-Mart…. Its K-Mart compared to Midwest.

[Edited 2006-12-13 07:13:10]
 
N353SK
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 3:19 pm

Quoting PlanesNTrains (Reply 22):
Are you implying that they would let the airline fail rather than sell? Well THAT would be the responsible thing to do, now wouldn't it?  

That's exactly what I'm saying. If you look back to about 2003 you'll notice that YX was on the verge of Chapter 7 and liquidation almost weekly. Did they change their product to make it profitable? Barely. They added saver service to a few markets and changed the complimentary meals to BOB. YX is more or less a homegrown, grassroots airline that survives on the support and loyalty of many Wisconsinites. The only way we'll see FL with YX's planes is if YX were to liquidate.
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 3:35 pm

Quoting Boeing7E7 (Reply 38):
And then watch their hopeful market share implode. You LCC nut jobs don't get it do you? You're taking a specialty product and supplanting a crap product. Midwest survives because of product differentiation. AirTran isn’t even Wal-Mart…. Its K-Mart compared to Midwest.

Charming intro as always. Big grin

You are correct - AirTran will likely fail if it thinks it can be Midwest II to YX customers. I don't think there is any question there. I doubt, though, that AirTran plans on being YX-II. IMO AirTran can be [moderately] successful in MKE as itself. Certainly there will be an exodus of YX diehards to other carriers, most notably NW, but there will be many who will come to find AirTran an acceptable alternative to the legacies.

I guess the reverse question might be: Why can't AirTran or another LCC succeed in MKE absent YX?

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 3:41 pm

Quoting N353SK (Reply 39):
That's exactly what I'm saying. If you look back to about 2003 you'll notice that YX was on the verge of Chapter 7 and liquidation almost weekly. Did they change their product to make it profitable? Barely. They added saver service to a few markets and changed the complimentary meals to BOB. YX is more or less a homegrown, grassroots airline that survives on the support and loyalty of many Wisconsinites. The only way we'll see FL with YX's planes is if YX were to liquidate.

That's great - seriously. I think we can all respect their steadfastness in sticking as much as possible to their longterm formula in the face of real financial peril. Having said that, if in the future the carrier were to actually fail rather than accept an acquisition offer - well, to quote my previous sarcasm:

Quoting PlanesNTrains (Reply 22):
Well THAT would be the responsible thing to do, now wouldn't it?

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
Boeing7E7
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 3:43 pm

Quoting PlanesNTrains (Reply 40):
Why can't AirTran or another LCC succeed in MKE absent YX?

MKE is low level O&D with premium customers willing to pay which is why an 88 seat premium airline works so well. AirTran is better off starting a new hub in STL, IND or AUS if they want to grow. They will endure complete rejection at MKE and fail.

[Edited 2006-12-13 07:46:16]
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 3:57 pm

Quoting Boeing7E7 (Reply 42):
MKE is low level O&D with premium customers willing to pay which is why an 88 seat premium airline works so well. AirTran is better off starting a new hub in STL, IND or AUS is they want to grow. They will endure complete rejection at MKE and fail.

So you advocate building - from scratch - a new hub in a different city, including new aircraft, new employees, new marketing, etc., rather than the more turnkey approach that they appear to be proposing? All because the citizens of Milwaukee will rise up in protest to AirTran moving in?

Interesting. Maybe you're right. Maybe it'll be another US+PSA debacle. Maybe not.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
Boeing7E7
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 4:20 pm

Quoting PlanesNTrains (Reply 43):
So you advocate building - from scratch - a new hub in a different city, including new aircraft, new employees, new marketing, etc., rather than the more turnkey approach that they appear to be proposing? All because the citizens of Milwaukee will rise up in protest to AirTran moving in?

Interesting. Maybe you're right. Maybe it'll be another US+PSA debacle. Maybe not.

If they want to grow, that's AirTran's problem. A merger for the sake of merging with what appears to be complete disregard for what Midwest is and what makes Midwest viable is just plane stupid.
 
PlanesNTrains
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 4:26 pm

Quoting Boeing7E7 (Reply 44):
If they want to grow, that's AirTran's problem.

I knew that would be your response, and I can't say it's wrong. It IS AirTran's problem if they want to grow - they just need to decide how to do it. I take it you disagree with their approach  Smile.

Quoting Boeing7E7 (Reply 44):
A merger for the sake of merging with what appears to be complete disregard for what Midwest is and what makes Midwest viable is just plane stupid.

Or at least insensitive.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
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knope2001
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 8:45 pm

Obviously it is very early and we have not even heard a public reply from Midwest. But I'm startig to wonder if there there is anything more to this than:

(a) AirTran has again made an offer to Midwest
(b) Midwest has again rejected it flat out
(c) AirTran is pissed and is hoping that bring it to the light of day will make Midwest receive enough pressure to change their mind

Short of hoping that pressure will build on the BOD to accept the offer, dues AirTran have any way to force this to happen? I'm trying to find some trace of that and so far have not. Among other things, Midwest is not nor has never been in bankruptcy, so creditors and courts don't have their say in the way they can force Delta to do things they may not way to.

And if that is the case, is this any more than AirTran kicking up dust because their offer was turned down?
 
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BNE
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Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 9:18 pm

AirTran Holdings, Inc the parent of AirTran Airways, announced today it has made a proposal to acquire all of the outstanding common stock of Midwest Air Group Inc.

Slight change of topic heading.

[Edited 2006-12-13 13:25:16]
Why fly non stop when you can connect
 
Mainland
Posts: 277
Joined: Mon Jun 14, 2004 3:17 pm

RE: WSJ: AirTran Preparing To Unveil Offer For Midwest

Wed Dec 13, 2006 9:22 pm

Quoting Knope2001 (Reply 46):
Short of hoping that pressure will build on the BOD to accept the offer, dues AirTran have any way to force this to happen?

I'll have to dive into the filings they've made with the SEC to make sure, but I believe Airtran could take the matter directly to Midwest shareholders and engage in a proxy fight. They're offering $11.25 -- a price not seen since mid 2002 -- so it may be appealing to some shareholders. Nonetheless, I agree that this feels like a merger for mergers sake on the surface.
You don't need a passport to know what state you're in...
 
BH
Posts: 519
Joined: Sun Jul 22, 2001 7:27 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 9:29 pm

From what I am hearing FL is at the point that they will do what they have to do to get YX. They have voiced their hope to merge with them and I think that if YX does not agree they will take other courses of action to aquire them.
 
luv2fly
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RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 9:41 pm

Quoting N353SK (Reply 20):
YX is a stubborn, stubborn airline. They are far too proud to get rid of the signature service they worked so hard to create. Management will go down with the ship before they even consider selling to FL.

Except for the seating and a cookie it is the same as any other airline. Buy on board for food.
You can cut the irony with a knife
 
BH
Posts: 519
Joined: Sun Jul 22, 2001 7:27 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 9:44 pm

Fogot to include this.
From the public letter, in response to Midwest's declining the proposal.

Airtran Holdings Propses Merger With Midwest Air Group

"To day Mr. Leonard sent a letter to the Midwest board advising them that AirTran would continue to pursue a merger with Midwest..."

"Because we believe that the proposal is such a compelling opportunity and offers such significant benefits to your constituents, we feel obligated to make this proposal known and are therefore making public this letter and the supporting financial analysis."

Looks like FL is switching from a would you like to merge tone, to a we want your company and are going to do what we have to in order to do it.
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