AirTran expansion likely, says Hoeksema

[IdRtherBsailing]

All you have to do is look no further than Horizon Airlines.. When they were researching the replacement of the F28 they looked at 50 seat RJ's.. Horizon said the 50 seat RJ doesn't make any sense because you can't make any money with it because the operating costs were so high, thus the reason they bought 70 seat RJ's. Even now, Horizon basically says the 70 seat RJ is a break even airplane and they make their money with the Q400.. You guys can say what you want, but Midex needs RJ's like SWA "needs" RJ's.. Airtran tried it, and it didn't work.. But Hoeksema may know something that nobody else does..

Thats comparing apples to oranges. The RJ Costs with Airtran were significantly higher with Air Wisconsin(before Concessions) than Skywest operating costs are now. Plus Midwest is not assuming all the debt and risk of owning these A/C.

 

[CitationLover]

No...we cut them loose long before they could!

it was a good precedent you guys set!

i hope in the future the primary growth is in the 717's or 737/A320 at midwest! but this current arrangement is the hand midwest's pilots are dealt now.

 

[Lear70]

Thats comparing apples to oranges. The RJ Costs with Airtran were significantly higher with Air Wisconsin(before Concessions) than Skywest operating costs are now. Plus Midwest is not assuming all the debt and risk of owning these A/C.

Neither did AirTran when they operated them.

People just don't get it. I have the operating cost data from Bombardier on the CRJ-200; it is a MONEY LOSER. It was designed simply to connect high-fare passengers into the major airline hubs for transcon and international flying. Period.

Every time it takes off, it costs more money to fly than it makes. The operators who are flying it make money because the major they are flying for pays them a fee per departure or fee per mile.

If you have any questions about how economical a 50-seater in combination with narrow body mainline is, just ask an Indy Air pilot.

Incidentally, that comic is HILARIOUS!!

 

[Ty Webb]

The airline exec booted out of the plane should have had a contract sticking out of his pocket with "T/A 2007" written on it, because that is what the majority of our pilots are going to do when they see this turd . . . . . . giving it the boot.


.

 

[Lear70]

The airline exec booted out of the plane should have had a contract sticking out of his pocket with "T/A 2007" written on it, because that is what the majority of our pilots are going to do when they see this turd . . . . . . giving it the boot.

Don't hold back... tell me how you really feel about it! LOL...

I agree though. I have immediate NO vote items that, if present on the T.A., will simply cause me to put the rest of it in the "Can you believe they even tried to pass this" junk box in the closet (for sentimental value - and a good laugh - during retirement).

Unfortunately, I've heard 2 of them are done deals and included on the T.A.'d section. Been hearing the rumors from multiple sources, one or two of which I believe are in the "know" enough to be believed.

I'll wait 'till I see it, but I can honestly say the talk has made me solidify what I really need -vs- "it would be nice to have" items.

 

[FlyWolf]

The airline exec booted out of the plane should have had a contract sticking out of his pocket with "T/A 2007" written on it, because that is what the majority of our pilots are going to do when they see this turd . . . . . . giving it the boot.


.

 

[FlyWolf]

^^ how's that Ty

 

[Ty Webb]

FlyWolf-

Thanks for the laugh . . . . . I think I just set a distance record for shooting single-malt Scotch out of the human nose . . . . .

I imagine that picture will end up on quite a few refrigerators- it will be on mine, as soon as I get home!

TW

 

[CoolSidePillow]

AAI seems to be hiring a lot and buying airplanes. How do things look from within? PAX loads good?

 

[FlyWolf]

FlyWolf-

Thanks for the laugh . . . . . I think I just set a distance record for shooting single-malt Scotch out of the human nose . . . . .

I imagine that picture will end up on quite a few refrigerators- it will be on mine, as soon as I get home!

TW

Glad you got a kick out of it Ty

 

[Murphy]

pax loads were good on my trip last week...even midweek. Most flights out of the Florida cltles are full.

 

[Lear70]

We've been in the high 90's to completely full on almost every flight, and I'm flying the crappy BWI-DAY, DAY-LGA, LGA-PHF stuff.

Except that I really like the PHF overnights. Good hotel, long overnight, free breakfast, RIGHT beside the mall, lots of good places to get beer and food when you first get in, and free Bally's right across the road so I can keep trying to get my fat a*s back into shape...

 

[FlyWolf]

Someone sold almost 14,000 of Midwest shares right at the end of Friday trading day, hmmm.... what does that mean, wonder if they know something we don't know.

 

[CitationLover]

Someone sold almost 14,000 of Midwest shares right at the end of Friday trading day, hmmm.... what does that mean, wonder if they know something we don't know.

and Citadel becomes the third largest shareholder at AAI around the same time.......

http://www.chicagotribune.com/business/chi-0704200411apr21,0,5964636.story?coll=chi-business-hed

 

[FlyWolf]

Maybe they are thinking that the deal might not go through? Because once airTran pulls out of the deal their shares will go up and Midwest shares will take a hit.

 

[CitationLover]

Maybe they are thinking that the deal might not go through? Because once airTran pulls out of the deal their shares will go up and Midwest shares will take a hit.

well the flightinfo warren buffet was wrong as it closed the week at $14.10 and not tanked to $5 like he/she predicted. AAI peaked right after the exchange offer at $12.88 on January 16. it appears the market does not want this to happen. AAI was hurting before this midwest merger talks as the stock was down close to 50% since March of 2006. perhaps with their stock deflated the midwest deal was a defensive manuever to avoid their own buyout talks.

 

[Lear70]

AAI peaked right after the exchange offer at $12.88 on January 16. it appears the market does not want this to happen.

Yeah, the stock peaked, and hasn't retreated significantly since. I think it's a bit early to say the market doesn't want it to happen. People are keeping the Midwest stock WAY too overinflated to state that.

AAI was hurting before this midwest merger talks as the stock was down close to 50% since March of 2006.

You might clarify that AAI stockholders were hurting. The airline has been doing just fine.

perhaps with their stock deflated the midwest deal was a defensive manuever to avoid their own buyout talks.

THAT is a very likely possibility. I've always said I didn't really understand the value of purchasing a marginally profitable company with a base so d*mn far north.

On the surface, the fleet plan works, but dig a little deeper, and you have a largely different operation, but I'm not in management either, so there's probably a lot more to it than that to make a profitable combined entity.

I've been waiting for someone to buy us with our cheap 737's coming, fracture us (Southwest), and sell off the pieces. Giving Midwest a deal with guaranteed low financing on our 717's and a large ATL hub operation that works fairly well would be a nice way to expand Midwest.

I *HOPE* that doesn't happen, as being on the 717 side of the house would probably be ugly, but it's been a small concern...

 

[CitationLover]

You might clarify that AAI stockholders were hurting. The airline has been doing just fine.

i thought i was by using the stock symbol and not saying Air Tran.

 

[mnboyev]

Its gonna be fun... let the games begin.. Wolf... do ya think Citadel is just positioning to make a little dough? Taking advantage of the fluctuating stock.. Just curious.. this stuff is far too complicated for a ice fisherman like myself... Wonder if Warren B.. drinks a little ol swill now and then?

Who are these fellas that AirTran is trying to get on the board? I googled Galena Aquisition and it did come up with the names... I just didnt follow up and see who they 'really' were and what interest they may have at stake.

AirTran is healthy... you can tell by how "healthy" our FA's are looking... Or did I say hefty.....anywhoo.... Best Wishes to all... Going out on the boat fishing dont ya know. Crappies are in full swing !!!

Merger and Aquisition talks I understand were in full swing at the last negotiation meeting ... Hmmmm...

 

[Lear70]

Merger and Aquisition talks I understand were in full swing at the last negotiation meeting ... Hmmmm...

What makes it more interesting is the fact that they spent the ENTIRE week talking about Scope and M&A.

These items should be easy no-brainers... IF and I do mean IF your management has no intention to screw with your seniority or purchase another aircraft to operate your flights.

That section taking an entire WEEK worth of negotiating time and STILL no T.A. tells me the company isn't willing to simply say "We want our pilots flying our flights and will protect your seniority in a merger or acquisition".

Guess what section I'm turning to RIGHT after I look at the new pay rates in the T.A.?