AirTran and Alaska?

[airline#5]

Merger talks are ongoing. Expect to hear something soon. But why? I suspect Alaska wants the cheap leases on the 737 that AirTran secured as a MD-80 replacement. DOH would not be good for AirTran boys. Hopefully these negotiations fall apart, but I doubt based on the length at which they have been at the table.

 

[gt1900]

Your on crack... Alaska needs Airtran as much as they need a kick in the head... They already ordered the replacements for the md80's... It would make sense looking in from the outside BUT.. I just don't know how much it would make sense for the AK boys...

 

[fletch717]

What's your source? I've heard this stuff 20 times before.

 

[sf340flyer]

merger?? AK has enough cash on hand to buy airtran 2 times over. Nice try on the flamebait though

 

[Bill Nelson]

I heard SWA may be looking at Alaska!

 

[ferlo]

126 alaska pilots are looking at SWA...I see a trend!!!

 

[sf340flyer]

I look at women (other than my wife), but that doesn't mean I sleep with them

 

[Ty Webb]

Is that tired old rumor still being flogged? We have never seen evidence of it being considered, unlike the Midwest talks.

Midwest was actually part of the original Alaska rumor- we would have a fleet of MD80, 737 and 717, and a lot of savings at all of the stations we have combined service, like DCA, MCI, MKE, LAX, etc.

DOH? Wouldn't happen. Too many training events. Before Alaska's give backs, though, I would have gladly been a senior FO for $10. less per hour. . . . easy street!

 

[mach none]

I highly doubt we would hear about a merger here first.

 

[Bill Nelson]

It won't be a merger, it will be a buy out. SWA will buy Alaska outright, and then make an offer to the employees. Most likely, it will be a mirror image of the Morris deal with a direct staple at the bottom of the seniority list with pay protection.

If the Alaska pilots refuse this offer it will end up like T.S. and will be operated seperately until SWA consumes the entire operation and then it will be shut down.

SWA has a market cap of about $13.5B while Alaska's is about $1.3B. It would be an easy thing to accomplish without money actually changing hands. Stock will do the buying. The problem would be Horizon and the rest of the MD80's. What would they do with Horizon? Maybe J.O. over at Mesa would want to buy them.

You heard it hear first.