Airtran goes for Midwest Airlines

[General Lee]

AirTran preparing offer for MidWest Air, WSJ says

Tue Dec 12, 2006 10:03pm ET

Market View


NEW YORK, Dec 12 (Reuters) - AirTran Holdings Inc. (AAI.N: Quote, Profile , Research) is preparing to make an offer for Midwest Air Group Inc. (MEH.A: Quote, Profile , Research), according to a story in The Wall Street Journal Online on Tuesday.
The possible merger of the two airlines indicates that consolidation pressure has extended beyond the major airlines, the Journal said.
Both The New York Times Web site and The Journal Online site reported that UAL Corp. (UAUA.O: Quote, Profile , Research) and Continental Airlines Inc. (CAL.N: Quote, Profile , Research) were holding talks on a possible merger.
Neither UAL nor Continental could be reached.

The Journal said that AirTran in the next few days is expected to publicly disclose a recent $200 million offer made to Midwest's management.
AirTran, a discount full-service carrier operating mainly through Orlando and Atlanta hubs, has been pursuing Midwest for more than a year, the Journal said, quoting people familiar with the matter, but was rejected in its most recent approach earlier this month.
A Midwest spokeswoman declined to comment. AirTran could not be immediately reached for comment.

© Reuters 2006. All Rights Reserved.


Bye Bye--General Lee

 

[SkiFishFly]

If we buy Midwest and then SWA buys us - will I still have a job?

 

[180ToTheMarker]

With Midwest operating 717s, this makes more sense than SWA buying us or us merging with Frontier. I'll believe it when I see it though. This rumor has been going around for awhile.

 

[lowecur]

Mmmmm

Midwest has already proven it can survive against the big boys, so I have my doubts that $200M is going to do it. It's not much of a premium over the marketcap. Now if Joe B. LeoFornaro wants to even get to first base, he's going to have to let Mr. Hoeksema run the show. Midwest's model seems to be working very well, and that combination would need a niche to be successful. AirTran's present model just wouldn't cut it.

Joe has an ace in the hole if the DL/NWA merger pans out in lieu of the DL/US consolidation. That combination could be quickly lethal to Midwest from a pricing standpoint, and eventually would scald AirTran. Even the predicted sqabbling between employee groups and the airline could not subvert the tremendous pricing power they would have initially.

imp:​

 

[SWA/FO]

AirTran's present model just wouldn't cut it.

everywhere or just in MKE? It appears to be working well everywhere else.

 

['72Gremlin]

How many a/c's does Midwest have?

 

[Citrus531]

How many a/c's does Midwest have?

25 717's...11 MD-80's although they just announced they were getting 2 more the other day.

 

[lowecur]

everywhere or just in MKE? It appears to be working well everywhere else.

How they doing at MDW, DFW? :laugh:

imp:​

 

[Citrus531]

Granted we lost MDW to Southwest but we've still been adding little by little in Chicago...doing decent for us....DFW-so so...I know I've had trouble getting a seat on ATL-DFW recently

 

[bluejuice787]

Lowecur-

When are JB and Frontier going to get serious?

Juice