I never said our contract was better Nancy. I simply stated a fact. Sorry if that hurts your feelings. It took SWAPA about 30 years to climb to the top of the pay scales and that only occurred with concessionary contracts at the Legacies. Besides, you don't have any more say than I do about this deal. Your boss and the shareholders thought this was a good deal so it is happening. Thump your chest all you want, in the end you have very little say in how this goes down.
Not just our boss, but yours too.
The back story
The deal began when, during his first quarter conference call, Fornaro signaled his interest in consolidation. Next came a call from Kelly.
“I called Bob in the Spring and asked him ‘are you interested in exploring an acquisition?’,” said Kelly. “I outlined the way I was thinking about it so I didn’t set expectations he wasn’t open to. He was open to at least hearing what I had to say. He made clear that AirTran was not for sale but open to discussions which took place over a number of months.”
Fornaro continued. “When Gary called I wasn’t sure what the subject would be because two or three years ago we talked about codesharing in Chicago,” he said. “I didn’t know whether it would be an acquisition or some other type of partnership. I was really unsure. After the conversation I thought about Southwest relative to AirTran having vast resources. Then I thought you put yourself in a position to win and with that, I realized that we’d be in a much better position and our 8,000 people would be better off for it.
“There was a sense of sadness,” he continued. “When I started we had a 20-year-old fleet and now it is 6.5 years old. We didn’t run a very good airline and now we do. A lot of people didn’t think we could do it but we did and grew to be the second largest carrier in the world’s busiest airport. But still, Southwest has huge financial resources that we don’t have. If we want to be a success; if we want to win, we have to create opportunities where our people are better off and have brighter futures. We have struggled as a company but we are flexible and innovative and, with what Southwest’s resources brings our people, I ended up being very excited. By joining forces we could do more together than what we would be able to accomplish on our own.
“This was also an easy win for our shareholders,” he said. “If your share price is USD4.50 and the potential offer is between USD7.25 and USD7.75, it’s a great deal for shareholders. AirTran could probably get back there on its own but the industry is fraught with risk. So you look at a sure thing with a strong premium, you feel the shareholders will favor it.”