Southwest wouldnt want to buy Airtran, especially with Delta as being its main rival. The only reason Southwest was able to be so successful was cause of their fuel hedges. Now that those hedges are gone their cost per seat mile isnt even close to Jetblue on comparison. All the airlines right now are waiting for somebody to fail so they can "grow" or "move in" to pick up the pieces. Right now all airlines are currently in damage control trying to survive a weak economy and fuel prices that are averaging 60-70 bucks all while trying to make money. Airtran and Delta already have a happy median. Southwest knows this and is one of the main reasons why they have not already come to ATL in the first place. Southwest does not have the money to battle a strong legacy carrier like Continental, Delta, or American airlines in the SAME CITY AIRPORT ON A LARGE SCALE. Also when I mean large scale I mean greater then 20% of the airport market share for all of you that will start screaming LAX or something. The only merger with Airtran that you would see Delta not go crazy over would be someone like Alaska airlines. At that point Delta would be able to codeshare with another airline in its hub to get stranded passengers out. If you notice lately Skyteam, Star Alliance, or One world are just starting to look like large airlines. I know what your thinking yes Southwest has over XX amount of billion in the bank. But let me ask you this, do you really think they will want to waste 30%, 40%, or even 50% of that money fighting for ATL? How much will they get out of the market of ATL? Would it reduce their cash flow to a dangerous level? Will they lose their credit ratings by taking such a risky move? Look at it this way if Southwest was thinking to buy Airtran would they be moving in to MKE to spend millions of dollars when they have plans all along to buy Airtran? Why would you spend money when you are already planning to acquire it? Doesnt make sense I think everyone knows that a Southwest merger with Airtran is nothing but a pipedream to some and a nightmare for others.
Well said....
SWA is sitting on a pile of cash with rising costs and with every passing quarter looking for new ways to generate revenue to keep their years of momentum going. The F9 deal should give you some insight as to what kind of deals they are hunting for. F9 was culturally in their footprint and would have given them an edge in DEN at a great price. No harsh words for my brothers at Airtran but your managment has done a job on your rank and file over the last 2 years. Your pilot group is united because of leaderships constant antics. Couple that with a profitable base line (that would not go at a bargain basement price) and it just doesn't look like something Gary and team would want to get involved in.
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