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WDBRR
Posts: 605
Joined: Tue Jan 25, 2005 11:28 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 9:52 pm

Quoting TVNWZ (Reply 19):
$311-Million for basically 25 717s and a northern hub, if they want it. Not a bad price.

amazing...20 years ago, Texas Air bought Eastern for
$300 million and they threw in SystemOne.
 
nitrohelper
Posts: 413
Joined: Tue Mar 08, 2005 5:32 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 10:48 pm

Quoting Luv2fly (Reply 50):
Except for the seating and a cookie it is the same as any other airline. Buy on board for food.

As a member of Cheeseland , I find that the employees are friendlier & more willing to help travelers enjoy their flight than most other airlines. The reservation people were helpful with a problem for a friend that I sent to Midwest. The gate staff smile & treat you as a person not a "seat number". I think the cookies are a good symbol of "Midwestern hospitality".
Put me down as someone who would purposely not fly AirTran if they ruined Midwest. yuck 
The folks at Northworst must be smiling at the thought of no Midwest .
 
kstateinALB
Posts: 546
Joined: Tue Dec 12, 2006 10:22 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 10:54 pm

Quoting Boeing7E7 (Reply 42):
AirTran is better off starting a new hub in STL, IND or AUS if they want to grow.

I think there really isn't a point in starting up a new hub in the midwest, especially STL, because MCI is close enough to it. They could continue to keep the MCI hub and expand new markets, as well as keeping the MKE and ATL hubs. This could easily expand them more throughout the western United States.
 
ltbewr
Posts: 15458
Joined: Thu Jan 29, 2004 1:24 pm

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 10:57 pm

This is an interesting proposal and one if done right could lead to a win-win for both AirTran and Midwest. Unlike some other mergers, there wouldn't be any anti-trust issues. They both have some commonality in aircraft and serve some of the same airports but serve different market demographics, with Midwest seen mostly as a business traveler airline, AirTran as a casual/leisure traveler airline.
In a merged entity they should could keep their separate identities and service, but share check in, gates, staff and other services at the airports they both are at as well as merged reservation services and so on. That way you and get more efficiency and use of each other's facilities and lower costs for both entities.
AirTran could use Midwest's gates at off-peak times to service their primary casual travelers, Midwest could expand to AirTran airports at their peak time slots to expand their business side customers. AirTran, if I am correct, does have a premium coach/biz class seats on their aircraft, and could borrow Midwest's 'singature service' to their side for those seats, offering a level of service not on most legacy airlines today.
Try to be realistic and if done as I suggest above, could be good for everybody, including the passangers.
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:04 pm

I wonder how high they are going to have to go to win over the board of Midwest?

I think they would be a good fit for each other.
One Nation Under God
 
SeeTheWorld
Posts: 1090
Joined: Sat Dec 31, 2005 2:46 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:04 pm

Quoting Nitrohelper (Reply 53):
As a member of Cheeseland , I find that the employees are friendlier & more willing to help travelers enjoy their flight than most other airlines. The reservation people were helpful with a problem for a friend that I sent to Midwest. The gate staff smile & treat you as a person not a "seat number". I think the cookies are a good symbol of "Midwestern hospitality".
Put me down as someone who would purposely not fly AirTran if they ruined Midwest.
The folks at Northworst must be smiling at the thought of no Midwest .

I don't really understand all of this AirTran bashing. While Midwest is a great little niche carrier, it has struggled financially in the past, and it is unclear whether it could continue as a profitable niche player in a changing marketplace. Having said that, AirTran is a well-run airline that consistently gets high marks from its customer base. While that base may be demographic different from Midwest, passengers loyal to Midwest could do a helluva lot worse. I would pit AirTran's fares and service against Northwest anyday. Would you Cheeseheads really fly Northwest over AirTran, all things being equal? Some might, I suspect a lot would not.
 
n917me
Posts: 519
Joined: Tue Feb 08, 2005 9:18 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:13 pm

To: All Midwest and Skyway Airlines Employees
Date: December 13, 2006
From: Timothy E. Hoeksema
Subject: AirTran Offer

As you may have already heard, AirTran Holdings has proposed a merger
between AirTran and Midwest Air Group -- an offer that the Midwest Air
Group board of directors has turned down.

Our board, and its Board Affairs and Governance Committee, spent
considerable time and effort evaluating AirTran's offer. The board
concluded that it would not be in the best interests of the company, our
shareholders and other stakeholders -- including customers, employees and
the communities we serve -- to pursue discussions with AirTran.
Specifically, the board feels that our strategic plan and remaining
independent hold the best promise for continued growth and increased
shareholder value going forward.

Consolidations such as the one proposed by AirTran are common in industries
that are undergoing extensive change. You are well aware that the airline
industry has endured years of poor performance. A number of airlines are
discussing mergers in the hopes of improving their ability to compete. We
have worked very hard in recent years to lower our costs and return to
profitability -- accomplishments that also make us an attractive candidate
for merger.

AirTran is today going public with its offer in an attempt to raise
pressure on shareholders to convince the board to reconsider. Although this
kind of news is certainly unsettling, I will repeat a message I have shared
with you many times: the best way to ensure long-term survival is to
provide customers with the best possible product and service in the most
cost-efficient manner possible.

Please be assured that I will keep you updated as there is news to report.
 
Logos
Posts: 610
Joined: Mon Jan 24, 2000 10:47 pm

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:15 pm

Quoting LTBEWR (Reply 55):
In a merged entity they should could keep their separate identities and service,

I doubt that this is how it would come down at all. I think AirTran sees Midwest as having common aircraft and a presence in an area where they do not and little more. I doubt that they would preserve Midwest's premium product to any degree.

The premium service at a coach price concept has been every bit as successful as the airline within an airline concept, which is to say, not at all. Midwest has admirably maintained this concept longer than any of their predecessors (AirOne, MGM Grand Air, etc.) but I think it's only a matter of time, merger or no merger. Whether MaxAir and EOS can make this work internationally is highly questionable as well, but I see a more natural fit for it there.

Cheers,
Dave in Orlando
Too many types flown to list
 
mlsrar
Posts: 1384
Joined: Thu Mar 09, 2000 7:41 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:22 pm

Sorry, AirTran737, we usually see eye-to-eye on this one, but I'm totally opposed (in spite of my red-tail loyalties)

YX survived NW trying to bleed them to death in 2003-2004 with NW's attempt to reinstate it's 'mini-hub' at MKE. Throwing bonus miles, elite status, and unsupportable fares around in an attempt to kill YX. I thought it would happen, but YX survived, and emerged with a business model that seems to be working.

I would not want to see MKE dismantled.

Keep YX 'OUR' YX.
I mean, for the right price I’ll fight a lion. - Mike Tyson
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:26 pm

Quoting SeeTheWorld (Reply 57):
I don't really understand all of this AirTran bashing. While Midwest is a great little niche carrier, it has struggled financially in the past, and it is unclear whether it could continue as a profitable niche player in a changing marketplace.

 checkmark   checkmark   checkmark   checkmark 

Quoting Nitrohelper (Reply 53):
As a member of Cheeseland , I find that the employees are friendlier & more willing to help travelers enjoy their flight than most other airlines. The reservation people were helpful with a problem for a friend that I sent to Midwest. The gate staff smile & treat you as a person not a "seat number". I think the cookies are a good symbol of "Midwestern hospitality".

I can say that about most of my flights on other airlines as well. Well maybe no cookie, though if I want a cookie I'll spurge and buy a Mrs. Fields as THAT is a real cookie.
You can cut the irony with a knife
 
airtran737
Posts: 3487
Joined: Mon Apr 05, 2004 3:47 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:30 pm

Quoting Mlsrar (Reply 61):
Sorry, AirTran737, we usually see eye-to-eye on this one, but I'm totally opposed (in spite of my red-tail loyalties)

YX survived NW trying to bleed them to death in 2003-2004 with NW's attempt to reinstate it's 'mini-hub' at MKE. Throwing bonus miles, elite status, and unsupportable fares around in an attempt to kill YX. I thought it would happen, but YX survived, and emerged with a business model that seems to be working.

I would not want to see MKE dismantled.

Keep YX 'OUR' YX.

Thats totally understandable. YX is a great airline, and I have never said otherwise. I have bashed Timmy and the boys in the Cookie Palace, but thats a different story. YX has a legacy in MKE. It is loved by the town and the people. Hell, Milwaukee and the surrounding counties bailed them out when they almost went under in 2003. I understand the love affair that MKE has for YX. But I also understand how business works. It's a dog eat dog industry that needs consolidation. It started with US and HP and will continue. If FL wants YX it will get them. FL could purchase every piece of outstanding YX stock if they wanted to and go that route. There are ways to make it happen. This deal will change the lives of a lot of people. I have lived with YX pilots for the last 4 1/2 years, and this is something that we have discussed many times during that time. I don't want to see any of my friends get screwed over, but undoubtedly someone will. As a stockholder of both YX and FL I fully support this merger. Not because of my loyalty to the Tran (I don't work there anymore) but because from a business sense the buyout makes sense. Put your emotions aside and look at it. It makes sense.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
daus
Posts: 238
Joined: Wed May 04, 2005 5:37 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:35 pm

Well this sure will be interesting. People outside of Wisconsin need to understand this is somewhat akin to someone wanting to buy the Green Bay Packers. Midwest has that kind of loyalty around here.

If it the sale happens, it's only going to because the large institutional/mutual fund position holders force it. A large segment of the small holders of the stock are probably Wisconsin'ites who will vote for their 2 across leather seats/cookies rather than the short-term 20% stock gain.

Also, take a look of their Board of Directors. It is heavily weighted to local players (Hoeksema (of course), Bergstrom, Payne, Stratton, Sonnentag) who probably fly the signature product extensively. I know it's a stupid reason, but these guys probably use the airline like a private jet.
 
Cubsrule
Posts: 14721
Joined: Sat May 15, 2004 12:13 pm

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:37 pm

Quoting LTBEWR (Reply 55):
This is an interesting proposal and one if done right could lead to a win-win for both AirTran and Midwest.

I don't see how YX wins. This merger doesn't work out any other way than YX getting dismantled.

Quoting Luv2fly (Reply 62):
I can say that about most of my flights on other airlines as well.

No airline delivers as consistently as YX.

And for what it's worth, Midwest Air Group made an operating profit of $427,000 on revenues of about $168 million last quarter, while Airtran holdings lost $3 million on revenues of about $487 million.
I can't decide whether I miss the tulip or the bowling shoe more
 
isitsafenow
Posts: 3413
Joined: Sun Feb 01, 2004 9:22 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:41 pm

Now look at this how the other carriers are looking at it.......perhaps NW will get in on this and make a bid because they stand to lose the most if airTran succeeds in buying Midwest.
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
BH
Posts: 519
Joined: Sun Jul 22, 2001 7:27 am

RE: Airtran Proposes Merger With Midwest Air

Wed Dec 13, 2006 11:56 pm

Quoting Cubsrule (Reply 65):
I don't see how YX wins. This merger doesn't work out any other way than YX getting dismantled

Dismantled? The name will change but they are talking about growing out of YX's currnet markets, this would be growing and assembling a larger presence, not YX being dismantled. Also I heard that the cookies would stay for now!!
FL is in no way saying they are going to buy YX and shut down their markets.
 
longhaulheavy
Posts: 376
Joined: Wed Dec 17, 2003 1:52 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:04 am

Airtran has to know that to some extent if this purchase were to happen, NW would come back and take another shot at MKE, and Airtran would have to fight the 2003-2004 wars all over again if it wants to hold the dominant position. YX flyers are loyal to YX, and if YX is no more, it's going to be a free-for-all to win MKE customers. I fly with YX and NW almost evenly, and if my choice becomes Airtran or NW, I'll take NW every time.

The allusion to the Green Bay Packers above is absolutely accurate. By taking over YX, many people will fly "anything but Airtran" because they see it as a personal affront to the city.
 
quickmover
Posts: 2201
Joined: Sat Mar 06, 2004 4:28 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:06 am

I believe YX has been doing very well in MCI. Most of the new flights announced recently have been from MCI. I wonder if this deal will stop FL's MDW expansion plans.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:08 am

Quoting Cubsrule (Reply 65):
No airline delivers as consistently as YX.

In my book many other airlines do each and everytime I fly.
You can cut the irony with a knife
 
nitrohelper
Posts: 413
Joined: Tue Mar 08, 2005 5:32 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:09 am

Quoting SeeTheWorld (Reply 57):
Would you Cheeseheads really fly Northwest over AirTran, all things being equal? Some might, I suspect a lot would not.

I agree with you, if AirTran would keep some of the Midwest flavor, as LTBEWR said in reply # 55. ( I said "if they ruined Midwest"). Northwest is not looked at very favorably by the Midwest fans in MKE, AirTran would have an upper hand with their fares & by "not being NWA"! I have more than a million miles on NWA , most because my office was across the freeway from the MSP airport.
 
daus
Posts: 238
Joined: Wed May 04, 2005 5:37 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:13 am

Quoting Longhaulheavy (Reply 68):
because they see it as a personal affront to the city.

And again, to the fact that it is a local board, Uliyce Payne and Fred Stratton are not going to vote to "kill the cookies" without being forced. They would be outcasts at the country club! It's not just that they fly YX, it's because all their cronies fly YX.  Smile
 
Cubsrule
Posts: 14721
Joined: Sat May 15, 2004 12:13 pm

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:13 am

Quoting BH (Reply 67):
Dismantled? The name will change but they are talking about growing out of YX's currnet markets, this would be growing and assembling a larger presence, not YX being dismantled.

There are two things at work here. First, the YX corporate culture is vastly different from FL (or any other carrier, for that matter). FL won't be able to sustain that.

Also, I would argue that the MKE hub cannot survive without AL, especially as FL will undoubtedly remove signature service and thereby add capacity to the hub. I don't see FL and AL coexisting. ZW was a debacle for them. So a lot of what we have at MKE now would have to disappear.
I can't decide whether I miss the tulip or the bowling shoe more
 
micstatic
Posts: 777
Joined: Fri Jul 20, 2001 10:07 pm

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:20 am

Quoting Longhaulheavy (Reply 68):
The allusion to the Green Bay Packers above is absolutely accurate. By taking over YX, many people will fly "anything but Airtran" because they see it as a personal affront to the city.

I doubt that. It will probably be like anything else where few people make the most noise, when in fact those people are not the biggest flyers in the area. I can guarantee for the right fare, AirTran would be welcomed. At least eventually.
S340,DH8,AT7,CR2/7,E135/45/170/190,319,320,717,732,733,734,735,737,738,744,752,762,763,764,772,M80,M90
 
tooluther
Posts: 202
Joined: Mon Apr 24, 2006 4:21 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:36 am

Quoting Daus (Reply 72):
And again, to the fact that it is a local board, Uliyce Payne and Fred Strattonrnare not going to vote to "kill the cookies" without being forced. Theyrnwould be outcasts at the country club! It's not just that they fly YX, it's because all their cronies fly YX

Well look what Mellon Financialsrn"local board" did. They went ahead and moved ahead with the merger with Bank of New York because it was in the best interests of the company. And the Mellon execs are still retaining their local country club memberships.
 
BH
Posts: 519
Joined: Sun Jul 22, 2001 7:27 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:40 am

Quoting Cubsrule (Reply 73):
Also, I would argue that the MKE hub cannot survive without AL, especially as FL will undoubtedly remove signature service and thereby add capacity to the hub. I don't see FL and AL coexisting. ZW was a debacle for them. So a lot of what we have at MKE now would have to disappear.

Initial response from FL

"Midwest Connect is the brand name of the wholly owned regional airline, Skyway, which provides local and feeder service at MKE and MCI. Midwest Connect would continue to operate in much the same way it does today and it is likely that the name will continue. Aircraft in the Midwest Connect fleet include 32-seat 328jets and 19-seat Beech 1900."
 
daus
Posts: 238
Joined: Wed May 04, 2005 5:37 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 12:52 am

Quoting Tooluther (Reply 75):
They went ahead and moved ahead with the merger with Bank of New York because it was in the best interests of the company

I'm not saying it won't happen. It just won't be easy, as can be seen by the fact that YX has been blowing off AirTran for more than a year already.

The reality here is this, these announcements of offers only come once the prospective buyer concludes that the target is not really bargaining with the interests of the shareholders primarily in mind. YX is just a classic, publicly listed-but effectively privately controlled entity.
 
Mainland
Posts: 277
Joined: Mon Jun 14, 2004 3:17 pm

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:09 am

Airtran has just filed an 8-K with the SEC in regard to the merger, it includes the letters sent back and forth from Leonard to Hoeksema. Here's some tidbits from the filing:

-FL plans to replace the MD-80s with 737s

-$60 million in annual run rate synergies through increased aircraft utilization and cost savings.

-They note if Midwest delays in proceeding with merger negotiations and goes on with the Mad Dog/RJ fleet renewal synergies could be lost.

-"Aspects of Midwest Signature brand will be integrated into combined carrier" with a "Best practice approach to product and service"

-Midwest Connect will be maintained

-Airtran notes in their industry analysis that YX's unit revenue premium has eroded from more than 35% in 98/99 to less than 3% in 05.

- And they generally overall state that MKE is weak and vulnerable as a hub
as proven by the move by Northwest. Thus, Midwest needs to diversify or merge.

-The letters start Oct 20, with things remaining generally friendly for a while. Hoeksema keeps things cool for a while, assuring that they're taking the offer into consideration, but after Delta/United came to light Leonard gets pushy. Displeased to hear in their Nov 21st letter that Midwest plans to wait til a regularly scheduled board meeting December 6th to review Airtrans proposal, Leonard writes back:

"AirTran Holdings has made a compelling cash and stock proposal that is at a substantial premium to the market price of your stock with an expressed willingness to further enhance our offer subject to due diligence to explore value that you identify to us. More than a year ago you rejected our first proposal to acquire Midwest Air Group and you have now had our most recent proposal under review for more than a month. It is unacceptable for us to hear from you today that your Board is simply scheduling our proposal for an item at its next regular meeting. Quite apart from the corporate governance issues that this raises, we want to be clear that our passive response to your rejection of our original offer is not the pattern that you can continue to expect from us."

Emphasis added.

Man, the general tone of the letters that I take is that Airtran wants to get this done...and fast.

Hopefully some of this is new information.
You don't need a passport to know what state you're in...
 
USPIT10L
Posts: 2064
Joined: Tue Mar 28, 2006 12:24 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:12 am

Quoting BH (Reply 75):
"Midwest Connect is the brand name of the wholly owned regional airline, Skyway, which provides local and feeder service at MKE and MCI. Midwest Connect would continue to operate in much the same way it does today and it is likely that the name will continue. Aircraft in the Midwest Connect fleet include 32-seat 328jets and 19-seat Beech 1900."

That's what airTran would say right now, but if they can't or wouldn't make a regional operation work with someone as good as ZW, they'd destroy Skyway in a NY minute.

From a service standpoint, I am not in favor of this takeover. I've flown YX to MKE and loved it, great service, nice ride.

But reality states airTran must stay competitive with others in the market, ie DL, NW, and CO. If FL stands back and lets DL and US merger without doing anything to bolster their own performance/operation/stock price, then they're shooting themselves in the foot. I never thought we'd see another year like 1986, where everybody was buying assets from someone or merging/acquiring someone, I guess this really is part II of the consolidation of the airline industry in the US.
It's a Great Day for Hockey!
 
cloudy
Posts: 1613
Joined: Sat Apr 06, 2002 3:23 pm

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:14 am

Quoting PlanesNTrains (Reply 21):

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

The fleet and labor differences would be much harder to work out than they were with Morris Air or Transtar - both those mergers were hard on Southwest's operations and culture. Also, A MKE hub is not as valuable as the MDW gates WN was so crazy to get with the ATA deal. Also, ATA wanted to deal, Midwest Express does not want to. It is easier and cheaper to make deals with willing partners.
 
longhaulheavy
Posts: 376
Joined: Wed Dec 17, 2003 1:52 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:15 am

Quoting Daus (Reply 76):
The reality here is this, these announcements of offers only come once the prospective buyer concludes that the target is not really bargaining with the interests of the shareholders primarily in mind.

These announcements also create opportunity for others, so Airtran is taking a calculated risk with its strategy. A buy-out in the range of $300 million is small change for the private equity bunch, and if the board is loyal to the brand (which they are), they'd be much more likely to entertain a similar offer from a group that would take them private and maintain them as an independent airline. Granted, it might only delay an inevitable sale to another airline, but it would buy YX some more time before being dissolved.
 
quickmover
Posts: 2201
Joined: Sat Mar 06, 2004 4:28 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:19 am

http://www.airtran.com/midwest/Route_Network_Combined.aspx

It's interesting that other than SAT and several of the express cities, most all cities are already served by FL. Basically, Airtran will just be adding another destination (MKE or MCI) from most cities. The use of gates and ticket counters will be more efficient.

Is MKE more connecting traffic or o/d for Midwest?
 
blhp68
Posts: 244
Joined: Wed Sep 10, 2003 9:04 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:24 am

Does anyone think that if this goes through, MCI gets the shaff? Especially with Joe Leonard running the show at AirTran, he knows MCI all to well(in a bad way)
 
njintern
Posts: 56
Joined: Wed Dec 19, 2001 6:14 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:26 am

edited:

redundant

[Edited 2006-12-13 17:47:29]
 
airtran737
Posts: 3487
Joined: Mon Apr 05, 2004 3:47 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:30 am

On the conference call this morning Fl stated that they would try to run 152 daily flights out of MKE. The O&D numbers aren't there for that, sounds like STL for AA. They will rely on connecting traffic to support the hub.



[Edited 2006-12-13 17:31:58]
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
USPIT10L
Posts: 2064
Joined: Tue Mar 28, 2006 12:24 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:31 am

Quoting Blhp68 (Reply 82):
Does anyone think that if this goes through, MCI gets the shaff? Especially with Joe Leonard running the show at AirTran, he knows MCI all to well(in a bad way)

MCI would stay as it is right now. Remember, EA also had regional services there. There is nothing wrong with having a focus city there, but a large hub is not practical due to the layout.
It's a Great Day for Hockey!
 
n917me
Posts: 519
Joined: Tue Feb 08, 2005 9:18 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:37 am

Mr. Joseph B. Leonard
Chairman and Chief Executive Officer
AirTran Holdings, Inc.
9955 AirTran Boulevard
Orlando, FL 32827

Dear Joe:

Our Board of Directors met today and had an extensive discussion of your
expression of interest in a transaction with our Company. As you know, we
have taken your letter very seriously, and since October 20, 2006 the
Board and the Board Affairs and Governance Committee have spent
considerable time and effort in a process with their advisors to
understand and evaluate your expression of interest.

The Board completed this process today. While the Board has a great deal
of respect for AirTran and for your leadership, it has concluded that it
would not be in the best interests of the Company, our shareholders and
other stakeholders, including customers, employees and the communities we
serve, to pursue a transaction with AirTran under the current
circumstances. The Board feels that the Company's strategic plan and
remaining independent hold the best promise for continued growth and
increased shareholder value going forward.

Thank you very much for your interest in our Company and your efforts in
submitting your letter.

Best regards for a good holiday season.

Very truly yours,
Timothy E. Hoeksema
Chairman, CEO and President
 
daus
Posts: 238
Joined: Wed May 04, 2005 5:37 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:37 am

Quoting Longhaulheavy (Reply 80):
they'd be much more likely to entertain a similar offer from a group that would take them private and maintain them as an independent airline

I agree completely, that's what they would love to do. But they might be too small to attract attention.
 
User avatar
deltadawg
Posts: 1014
Joined: Sat May 13, 2006 2:56 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:39 am

Quoting Blhp68 (Reply 82):
Does anyone think that if this goes through, MCI gets the shaff? Especially with Joe Leonard running the show at AirTran, he knows MCI all to well(in a bad way)

No, actually I beliee it would be the opposite. MCI represents an opportunity for a midwest focus/small hub city where there is plenty of room for growth and the combination of gates and perhaps a shift of some of the 328's to MCI would give FL a real foothold in the Midwest.

Time will tell. They first have to make a deal.
So YX, is it "Deal, or no Deal?"
GO Dawgs, Sic' em, woof woof woof
 
Boeing7E7
Posts: 5512
Joined: Sat Jul 31, 2004 9:35 pm

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:39 am

Quoting KstateinALB (Reply 54):
I think there really isn't a point in starting up a new hub in the midwest, especially STL, because MCI is close enough to it. They could continue to keep the MCI hub and expand new markets, as well as keeping the MKE and ATL hubs. This could easily expand them more throughout the western United States.

You're not getting it. The Midwest hubs won't work for a second rate carrier. Midwest is picking up premium travelers. Travelers that will go away with AirTran because they aren't going to stand for being shoved into a plane like sardines. Keeping cookies won't mean jack.

Quoting SeeTheWorld (Reply 57):
I don't really understand all of this AirTran bashing.

They are a fourth tier airline right behind Midwest/Alaska, whats left of the network carriers and Southwest, nothing more, nothing less. AirTran is a poor excuse for an airline. They thrive in a market Southwest won't go into as a low cost carrier. They will not get the business traveler support Midwest thrives off of and they will get creamed by the hub raiders. In the end, they will kill one of the last great airlines then end up retreating to Atlanta broke, in debt and parking planes. For what? Nada.. Zilch...Zippo!

[Edited 2006-12-13 17:39:59]
 
airtran737
Posts: 3487
Joined: Mon Apr 05, 2004 3:47 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:42 am

Been told by a reliable source that Joe Leonard and Bob Fonaro are coming to MKE this evening. This sucker is heating up. Lucky for YX Wisconsin has strict hostile take over laws.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
n917me
Posts: 519
Joined: Tue Feb 08, 2005 9:18 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:49 am

Personally, I think Joe is full of crap. There will be routes cut, decreased service to certain markets and many jobs lost on the YX side. (Ask TWA employees, Reno Air employees what happend after AA promised them job security) Fares are certain to increase out of MKE, esp on routes that YX/FL would have a monopoly on.
GO TIM and the Board!!!! I encourage you to continue to REJECT FL offer, keep YX the brand and award winning airline that you envisioned and with the help of all YX employees have continued to grow and expand!

YX continues to post profits and grow, November results were positive and for the year over last results , those too are positive. YX should remain an independent airline and continue expansion plans and fleet renewal.
 
airtran737
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:51 am

Quoting N917ME (Reply 91):
Personally, I think Joe is full of crap. There will be routes cut, decreased service to certain markets and many jobs lost on the YX side. (Ask TWA employees, Reno Air employees what happend after AA promised them job security) Fares are certain to increase out of MKE, esp on routes that YX/FL would have a monopoly on.
GO TIM and the Board!!!! I encourage you to continue to REJECT FL offer, keep YX the brand and award winning airline that you envisioned and with the help of all YX employees have continued to grow and expand!

YX continues to post profits and grow, November results were positive and for the year over last results , those too are positive. YX should remain an independent airline and continue expansion plans and fleet renewal.

Look at it from a business standpoint, not an emotional one. Tim doesn't give a shit about you our any other employee, the same goes for Joe. They care about the almighty dollar. This merger makes sense.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
Boeing7E7
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:53 am

Quoting AirTran737 (Reply 90):
Been told by a reliable source that Joe Leonard and Bob Fonaro are coming to MKE this evening. This sucker is heating up. Lucky for YX Wisconsin has strict hostile take over laws.

They should save the money. Wasted trip, and they'll need the money as they get pounded requiring reserve cash if they get their wish.

Better idea... Midwest takes AirTran. That's called a service improvement.
 
n917me
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:57 am

Yes, I am looking from an emotional one, but also from a business standpoint, I strongly feel that fares would go up, routes would be cut. Its all part of the merger business. US and HP are a prime example. YX and FL are two different business cultures.

YX is making money, cut costs and have plans that will take place in early 2007, that FL does not know, that may put a squash on this whole merger.

Why not merge with F9, they are not doing to hot right now. Besides the mixed fleet, they would be a good fit.
 
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deltadawg
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:57 am

Quoting Boeing7E7 (Reply 89):
They are a fourth tier airline right behind Midwest/Alaska, whats left of the network carriers and Southwest, nothing more, nothing less. AirTran is a poor excuse for an airline. They thrive in a market Southwest won't go into as a low cost carrier. They will not get the business traveler support Midwest thrives off of and they will get creamed by the hub raiders. In the end, they will kill one of the last great airlines then end up retreating to Atlanta broke, in debt and parking planes. For what? Nada.. Zilch...Zippo!

And when have you flown FL? These are some pretty poor acqusations. FL and WN both compete in MDW, obviously WN has the larger market share but then again the company has been around 20+ years longer and in MDW 10-15 year longer as well. FL offers a BIZ/first class at least whereas WN does not and in so FL recognizes business travelers in a degree that you do not give them credit for. Moreover, FL and WN both compete in BWI as well. FL over the past several years has steadily grown while usually making a profit and goes head to head in markets with legacies and WN. While your opinions are yours and "everyone has one" I think you give them far less credit than they deserve. In the end, one of the last great airlines has been losing money for some time and has been a target for acquisition as well. If they were that great they would be buying out FL, not the other way around. And yes, I fly YX (ATL-CWA at least once per month) and FL (own stock in FL).
GO Dawgs, Sic' em, woof woof woof
 
SeeTheWorld
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:58 am

Quoting Cubsrule (Reply 64):
And for what it's worth, Midwest Air Group made an operating profit of $427,000 on revenues of about $168 million last quarter, while Airtran holdings lost $3 million on revenues of about $487 million.

It's not worth that much. Those number are negligibly different.

Quoting Cubsrule (Reply 72):
Also, I would argue that the MKE hub cannot survive without AL, especially as FL will undoubtedly remove signature service and thereby add capacity to the hub. I don't see FL and AL coexisting. ZW was a debacle for them. So a lot of what we have at MKE now would have to disappear.

That's just incorrect. One of the reasons AirTran is interested in YX is because of its presence and success at MKE. AirTran is in desparate need of a hub farther west, and MKE is the place. If anything, MKE will grow.
 
Boeing7E7
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 1:59 am

Quoting DeltaDAWG (Reply 95):
And when have you flown FL?

I flew thier alleged business class product once. That was plenty.

Quoting AirTran737 (Reply 92):
This merger makes sense.

You people are hysterical. For giggles... Do tell how this makes sense.

[Edited 2006-12-13 18:01:18]
 
BH
Posts: 519
Joined: Sun Jul 22, 2001 7:27 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 2:00 am

Quoting Boeing7E7 (Reply 89):
The Midwest hubs won't work for a second rate carrier. Midwest is picking up premium travelers. Travelers that will go away with AirTran because they aren't going to stand for being shoved into a plane like sardines

So its ok to get crammed into a 328 or 1900 as opposed to a 717 or 737? YX's 2x2 is not on every aircraft they fly and I doubt that everyone on their flights that have 2x2 are business travelers. So I think they would do fine with FL's set up, FL has 2x2 seating up front and coach in the back, that makes it more affordable for everyone involved.

And what happens if YX cant continue to make a profit with 2x2 in the future and they resort to a 2 class set up or all coach, I guess they will just loose all their passengers and go out of business the way you are talking.

Quoting Boeing7E7 (Reply 89):
They are a fourth tier airline right behind Midwest/Alaska, whats left of the network carriers and Southwest, nothing more, nothing less. AirTran is a poor excuse for an airline. They thrive in a market Southwest won't go into as a low cost carrier. They will not get the business traveler support Midwest thrives off of and they will get creamed by the hub raiders

How are you considering them a 4th tier airline. Is this just because of their seating? I could consider YX a 4th tier airline because their route network is relatively small,but I dont, I evaluate them from all aspects of their business. With your comment that they are right behind Midwest/Alaska sounds as if you dont think they are that far apart. FL flies into plenty of markets that WN does, and they already have a heavy business travel base in the markets they serve now that surely would take advantages of new routes and destinations that would come about with merger.
 
SeeTheWorld
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Joined: Sat Dec 31, 2005 2:46 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 2:05 am

Quoting Boeing7E7 (Reply 89):
They are a fourth tier airline right behind Midwest/Alaska, whats left of the network carriers and Southwest, nothing more, nothing less. AirTran is a poor excuse for an airline. They thrive in a market Southwest won't go into as a low cost carrier. They will not get the business traveler support Midwest thrives off of and they will get creamed by the hub raiders. In the end, they will kill one of the last great airlines then end up retreating to Atlanta broke, in debt and parking planes. For what? Nada.. Zilch...Zippo!

You are biased and delusional.
 
supa7E7
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RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 2:08 am

FL is looking desperately for someplace to grow. They have 73Gs up the wazoo.

Can AirTran really make Midwest's assets, routes, etc work? There is no evidence Midwest customers would become AirTran customers. They could do that already, but they don't. Instead of being a merger, this would be an execution of poor YX. Just like the AA/TWA merger...
"Who's to say spaceships aren't fine art?" - Phil Lesh
 
SeeTheWorld
Posts: 1090
Joined: Sat Dec 31, 2005 2:46 am

RE: Airtran Proposes Merger With Midwest Air

Thu Dec 14, 2006 2:08 am

Quoting Boeing7E7 (Reply 97):
You people are hysterical. For giggles... Do tell how this makes sense.

This merger probably makes the most sense of any other scenario involving any other two U.S. carriers. If you can't see that my friend, you either don't know much about the airline industry or you're so biased you refuse to acknowlege the synergies.
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