Airtran Big Annoucement?

[Propsync]

Scarlet, huh. IIRC, Scarlet had Skyway/Skywest/AirTran/Midwest/NW goings on pegged a year or two ago. Maybe mistaken with someone else, or maybe they were just good guesses, but seemed like an insider somewhere.

 

[maxblast72]

Bankruptcy?

Maybe during the summer of 2008 with less than $350 million in the bank and credit card processors being pesky. November 2009 with over $550 million in the bank, no credit card issues, and 4 consective quarters of operating margins in the positive 8-10% range, not likely.

My money is on a Southwest merger announcement. Southwest didn't close a deal to eliminate a lower cost competitor out west (Frontier) and doesn't want to lose out on a deal with a scrappy lower cost competitor on the East coast (Airtran). 3/4 share of LUV for every share of AAI gets the deal closed with no cash changing hands (a 50% premium for AAI shareholders based on today's closing prices). LUV gains a cash-flow positive operation and completes their domestic system with the addition of ATL and DCA as well as a handfull of Caribbean destinations.

 

[10nCLR]

Don't listen to me, but a possible code share with a regional out of MKE starting in December, but wait, I think its a no go now. Heehee. Bummer!

 

[RedDogC130]

Aslo do not forget the cheap 737s and options that Airtran has that SWA can't get right now....why pay 50 million per aircraft when Airtrans as much cheaper and option the same.

 

[WalterSobchak]

If the announcement is, indeed, what I hear it is...I look forward to seeing PFT_128's head explode.

 

[zman]

Skywest is going to feed Airtran

 

[dh82dvr]

Republic to make a bid for AT

 

[dh82dvr]

ohh wait I know, big raises for the best management team in the industry......

 

[atldc9]

Most of that $500 million is smoke and mirrors. $125 million is a revolving line of credit that was drawn down for the end of the quarter, and then repaid on 10/19. Kind of like a cash advance on your credit card. Do we really want to call that cash in hand? Also, of the $150 million raised earlier this month, $95 million is slated to be used to pay off the senior convertible 7% notes that can be put to us on July 1, 2010. The company fully expects the notes to be put to us. So from the $550 million cash on hand stated during the conference call, $125 million is already gone back to the revolver, and $95 million is earmarked for current long term debt obligations, leaving $330 million in cash.

Then they have to pay the retro.

Shenanigans on the balance sheet.

 

[gearup5]

charging for toilet paper.

FUPM