Midwest CEO gets reamed during Q2 conference call

[Max Powers]

DH106 no question he was bombarded by loud minority shareholders who want to make their quick buck. octavian sends out its press release every month saying the same thing. nothing is stopping air tran from buying Jamie's funds shares right now.

I hate to break this to you chief but everyone is a minority share holder; if you look at their holdings alone. The point is the MAJORITY of these minority share holders want to sell. With Midwest's plan the share price will not increase past 15 dollars until two decades from now if at all possible.

 

[DH106]

There was a lot of stuttering by Tim H. Here is the audio from the conference call. Click the link at the top, "Listen to the archived audio event."

http://biz.yahoo.com/cc/3/83223.html

Pilot shortages and general staffing were key issues during the call. Tim H. stated, "[Pilot] turnover at Skyway has been relatively small."

However, friends of mine at Skyway (who have all resigned in recent months) have stated that turnover is extrordinarily high right now.

One of the callers representing Lightspeed said, "You know, you owe it to your owners to be a little more transparent on what earnings you are expecting and how you see that they're going to translate into profitability." Tim H. followed with silence. She continued, "I mean, are we going to have a formal response, you know, from the board?"

 

[CitationLover]

I hate to break this to you chief but everyone is a minority share holder; if you look at their holdings alone. The point is the MAJORITY of these minority share holders want to sell. With Midwest's plan the share price will not increase past 15 dollars until two decades from now if at all possible.

uh chief, NOTHING is stopping air tran from buying the shares for their offer price right now.

 

[FIREMAN]

uh chief, NOTHING is stopping air tran from buying the shares for their offer price right now.

uh, poison pill

 

[Lear70]

ok just trying to look at it from both sides.....

what if most deliveries get shifted to ATL or MKE, wouldn't one side of the fence be neglected as i imagine most of the immediate future growth would be MKE (since ATL is already established). i would imagine this is an undesirable outcome for the aai pilots (and the current fear selling point of the crappy TA).

thanks for the info again.

The fence wouldn't be for bases, it would be based on who you worked for pre-merger. Wouldn't matter WHERE the airplanes went (ATL or MKE), the upgrades for new aircraft deliveries would be to original AAI list pilots, the upgrades for MEH retirees or other attrition would go to MEH pilots.

What we worry about is the company taking their time with the integration and shifting 737's to the MKE side of the house before the list is integrated, using it as a carrot (or a whipping stick, depending on your point of view) to get a concessionary T.A.

 

[Max Powers]

uh chief, NOTHING is stopping air tran from buying the shares for their offer price right now.

Uh chief Airtran can't afford to buy those shares by their lonesome. It is more responsible (less risk) to let the hedge funds(hedge fun people are less risk adverse) buy the shares. Thence dilute a portion of airtrans company's shares to complete the sale. I think airtran will use approx 100 million dollars to complete the acquisition. The Hedge funds will then own some cash but mostly airtran stock which will increase in value do to the acquisition and growth strategy's and increased revenue from the combined company. The hedge funds may elect to keep the shares of merged company as stake holders.

 

[CitationLover]

uh, poison pill

no, it doesn't prevent someone from buying shares, thus jamie could have her money.

 

[CitationLover]

Uh chief Airtran can't afford to buy those shares by their lonesome. It is more responsible (less risk) to let the hedge funds(hedge fun people are less risk adverse) buy the shares. Thence dilute a portion of airtrans company's shares to complete the sale. I think airtran will use approx 100 million dollars to complete the acquisition. The Hedge funds will then own some cash but mostly airtran stock which will increase in value do to the acquisition and growth strategy's and increased revenue from the combined company. The hedge funds may elect to keep the shares of merged company as stake holders.

do they want the company or not? they have cash in the company, besides they'll get $190million back from MEH after purchase. i can't help it that midwest is incorporated in wisconsin and thanks to the likes of icahn and lorenzo we have protection from unwarranted offers. so their offer is contingent on the negotiation away of a state law, they could change that. how badly does JL want it? after all the ego talk of tim, joe has a big one too.

so does air tran automatically increase in value with the acquisition? since they have announced the buyout look at what air tran's stock has done. the market doesn't think too highly of the growth plan right now. besides they are already trying to squeeze orlando for more $$$ or they will move their HQ (no different than what they are doing to the pilots). put your money where your mouth is and buy some shares of aai, it's near its 52 wk low (while the company is producing record after record profit and earnings).

 

[CitationLover]

What we worry about is the company taking their time with the integration and shifting 737's to the MKE side of the house before the list is integrated, using it as a carrot (or a whipping stick, depending on your point of view) to get a concessionary T.A.

isn't he doing that already? perhaps this whole buyout exercise is precisely over this.

 

[tubelcane]

Any joe schmoe who would buy any airline stock is foolish. Those plays are for the pros. I just think if sw isn't a good buy who is? They have made money every quarter and their stock has'nt moved more than a few dollars in what 7 to 10 years. When I was hired at TWA a guy in our new hire class bought a couple thousand dollars worth of their stock. In a few months it wasn't worth a nickel. I just don't why anyone would invest their hard earned money in this sector it's way to speculative. Now if the company is giving you stock that's a different story, you're playing with house money.

 

[Lear70]

isn't he doing that already? perhaps this whole buyout exercise is precisely over this.

They're trying, but the pilots aren't going for it.

We know d*mn well we'd file a single-carrier petition status and it WOULD be successful, it would just take 18-24 months to enforce.

Would suck to be an F/O during that process as upgrades grind to a sudden halt, but that's a LOT better of a proposition than having a T.A. imposed that gives you growth, but guts the work rules that make it a job worth having to begin with...

Which is the worst evil? I think we know.

And no, I don't think the buyout is just over the pilot's contract. WAY too much money to play with over something as insignificant to the business bottom line as pilot salaries. We don't cost them nearly as much as they like to pretend.

 

[Draginass]

The truth is regardless of how incompetent he is or what condition he leaves the company Tim will leave very very rich. Follow the money.

 

[CitationLover]

speaking of buying stocks....

what are the fees associated with Air Tran's 401(k) and B fund? 0.8%? does the company pay the associated fees?

 

[Lear70]

They do for the B-fund. Have no idea if they do for the 401(k) fund; I haven't made enough money to bother contributing.

 

[deadstick]

Link to news release and related post.