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AirTran Holdings seeks court order against Midwest Air Group

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Tomorrow is the big day

Midwest BOD 10 day period is up

4th. quarter and full year numbers are out, webcast conference call at 10am central on Midwest website.
 
FlyWolf said:
Tomorrow is the big day

Midwest BOD 10 day period is up

4th. quarter and full year numbers are out, webcast conference call at 10am central on Midwest website.
Click to expand...

on yxnet or on the public site?
 
bizjournals.com
Sen. Kohl: AirTran deal for Midwest to be closely scrutinized
Wednesday January 24, 4:11 pm ET
U.S. Sen. Herb Kohl of Wisconsin has sent a letter to AirTran Holdings Inc. chairman and chief executive officer Joe Leonard indicating his intention to closely review the proposed AirTran to buyout Midwest Air Group Inc. of Oak Creek.
As chairman of the Senate Subcommittee on Antitrust, Competition Policy, and Consumer Rights, Kohl's said he and others on the panel are concerned about consolidation in the airline industry, saying that further consolidation could lead to higher prices, lower quality of service, and loss of competitive choices.
Kohl expressed concerns specifically over AirTran's proposed takeover of what has become known as "Milwaukee's Hometown Airline," noting that Midwest: "is a company that is run by people who live and work here, who have a connection to our communities and who have earned loyalty that will not be replicated in an acquisition of Midwest Airlines by AirTran," Kohl's letter said.
"We are concerned that this merger could jeopardize the enormous consumer benefits realized by many thousands of travelers throughout Wisconsin, and compromise the frequency and efficiency of the service offered by Midwest Airlines at its Milwaukee hub and throughout the state."
Kohl also said it "is in the interest of Wisconsin consumers, as well as the greater Milwaukee economy, for Midwest Airlines to operate as a locally based, independent airline."
If AirTran continues to pursue its offer to acquire Midwest, Kohl told Leonard, "you can expect that the Antitrust Subcommittee will examine this proposed acquisition very carefully to ensure this transaction does not harm the interests of Wisconsin consumers or airline competition generally."
Kohl's letter, released by his office Tuesday, was written in response to a letter Leonard wrote to Kohl.
Published January 24, 2007 by The Business Journal</I>
 
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KholWest Airlines?:D Selling Kohl's merchandise on every flight? A Kohl's department store in the D concourse hammerhead?:D
 
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Now if Sen. Kohl were to step up to the plate and become a major shareholder? Does anyone know if he has a stake in this as well?
 
FlyWolf said:
LOL.... does he own Khols stores???
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Family business was sold in '79 I guess.

Just some background info...courtesy of wikipedia


Senator Kohl was born to Jewish parents in Milwaukee, Wisconsin. He earned his bachelor's degree from the University of Wisconsin-Madison in 1956, and a master's degree in business administration from Harvard University in 1958. He served in the United States Army Reserve between 1958 and 1964. He served as the chair of the Democratic Party of Wisconsin between 1975 and 1977. He has served in the United States Senate since his election in 1988. He was reelected in 1994, 2000 and 2006.
Before his election to the Senate, Kohl helped build his family-owned business, Kohl's grocery and department stores. He served as President from 1970 through the sale of the corporation in 1979. Kohl is currently the richest U.S. senator with an estimated net worth between $219,098,029 to $234,549,004,[1] while he could have a net worth of $279 million.[2] This has inspired his use of the catchphrase "Nobody's Senator but yours" on campaign commercials, implying that he is immune to bribery, whereas other senators may not be.
Kohl is recognized as an avid sportsman. In 1985 he bought the Milwaukee Bucks NBA team to ensure the basketball team remained in Milwaukee. Kohl also donated $25 million to the University of Wisconsin-Madison for construction of their new arena, which was named the Kohl Center. It was the largest single donation in University of Wisconsin System history.
 
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I hadn't known that he bought the Bucks back in '85 to ensure that they stayed in MKE. Interesting...........
 
If MEH thought they has such a great deal for their own shareholders, AAI wouldn't have to get a court-order to have the list released.

Not much else raises as big a red flag as that.

Remember, shareholders own the company, NOT the BOD. I fully expect MEH to be found in violation, having seen this happen in the past, and AAI will take their offer directly to the shareholders, as they have the legal right to do.

And if MEH is such a great deal, and management thinks they've put a great sping on it, the folks in the cookie palace have nothing to worry about.

Suck it up and let the owners of the company vote.

And remember, if MEH invokes the posion pill provision, it will just dilute the stock price making the offer on the table look even better.
 
ultrarunner said:
If MEH thought they has such a great deal for their own shareholders, AAI wouldn't have to get a court-order to have the list released.

Not much else raises as big a red flag as that.

Remember, shareholders own the company, NOT the BOD. I fully expect MEH to be found in violation, having seen this happen in the past, and AAI will take their offer directly to the shareholders, as they have the legal right to do.

And if MEH is such a great deal, and management thinks they've put a great sping on it, the folks in the cookie palace have nothing to worry about.

Suck it up and let the owners of the company vote.

And remember, if MEH invokes the posion pill provision, it will just dilute the stock price making the offer on the table look even better.
Click to expand...

Didn't know we had a member of the New York State Supreme Court on FlightInfo.com

Thanks for your ruling:D
 
ultrarunner said:
Suck it up and let the owners of the company vote.
Click to expand...


What kind of person thinks that Airtran offer to buy all Midwest outstanding shares didn't reach EVERY shareholder???

don't fool yourself

ultrarunner said:
And remember, if MEH invokes the posion pill provision, it will just dilute the stock price making the offer on the table look even better.
Click to expand...

Are you sure you know how's the posion pill process works?
 
Today AirTran sent out to the shareholders of Midwest their offer again and the comparison between what AirTran plans for the future and what Midwest management plans for the future. With all that has gone on the last couple of weeks at AirTran from the offer to the court filing against Midwest, has anyone seen management so determined to get one deal done? Remember back in 2003 when AirTran placed their order for 100 737-700 aircraft what was going on in the industry:

1. US Airways was in bankruptcy and everyone gave them no chance to emerge. Hmmm, plan A be ready to move in and take advantage.

2. In 2004 ATA files for bankruptcy and AirTran plans to takeover gates and slots in DCA and LGA and 14 gates in Midway. Hmmm, plan B be ready to move in and take advantage.

3. Now AirTran makes proposal to purchase Midwest. Is this plan C and a card that AirTran management desperately needs.
a. US Airways has merged and has come out of bankruptcy
b. United has emerged from ch.11
c. Northwest and Delta will emerge soon from ch. 11 much stronger

What do you think? Is it good or bad? Interested in hearing honest opinions.
 
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FlyWolf said:
I know that the company will be inspecting the planes and all the books soon, but didn't hear about the rear galley.
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Spoke with a 80 capt on the way in to ops work the other day and he had just gotten out of school and the guest speaker was head of MX and mentioned that they were good to go except the rear galleys. He estimated sometime in March or early April coming on-line. Again this all speculation.
 
Oh, and is there a specific reason MEH has not countered the offer....it would seem in the shareholders best interest.

I mean c'mon...everyone has a price. Put it on the table and make a deal
 
ultrarunner said:
Oh, and is there a specific reason MEH has not countered the offer....it would seem in the shareholders best interest.

I mean c'mon...everyone has a price. Put it on the table and make a deal
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I believe that sends a pretty clear message in and of itself:

"We're not for sale for ANY price."

Management isn't interested in losing their jobs. Can ya' blame 'em.

This is just the BEGINNING of the lawsuits against MEH, many by their own shareholders and employees, anti-trust, conflict of interest, the list goes on and on.

This is gonna get ugly, and it's unfortunate, as it COULD have been relatively painless. *sigh*

Just remember guys, it's about the SUITS, not about us on the line. No need to take it out on each other... :beer:
 
I think Midwest should turn the buck around and place a bid on AirTran! Now that would be just a perfect "Jerry Springer" moment!

Seriously, would be nice to see this issue finally resolved one way or the other.

Cheers!
 
ultrarunner said:
Oh, and is there a specific reason MEH has not countered the offer....it would seem in the shareholders best interest.

I mean c'mon...everyone has a price. Put it on the table and make a deal
Click to expand...

ultrarunner, we will hear Midwest BOD decision tomorrow, if there is a counter offer or otherwise.

Cheers
 
Eagle757shark said:
3. Now AirTran makes proposal to purchase Midwest. Is this plan C and a card that AirTran management desperately needs.

c. Northwest and Delta will emerge soon from ch. 11 much stronger

What do you think? Is it good or bad? Interested in hearing honest opinions.
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I think it's good. AAI is being proactive about ATL. When Delta comes out of ch. 11, ATL will be an insane battle ground. Big losses may be incurred. On both sides. The best way to dilute those losses is to grow outside of ATL. The best way for AAI to do this is through merger.

I will say this, with the stock at a 'premium' the BOD at Midwest is really hanging it out there saying they can do it alone. If AirTran goes away and the stock goes back to the 6-7 dollar range, there will be a mutiny. These are the good times and we're only making a million or so per quarter. I don't think that's enough for a company this small to weather the next downturn. On top of that, our 50 or so cities we serve will be done by no less than FIVE fleet types. Skywest was a mistake, they should have talked to Airtran first, just to see if what they had to say had merit. Those 50 seaters, although they do provide revenue as Midwest is quick to point out, comes at a staggering cost to the operation. The poison pill is a nonfactor, if they were that worried, they'd have done it by now.

I wished they would have ditched the 2x2 and gone with the 319/320. I wish Skyway could have gotten into the 135/140/145. I don't think five years will be well served by our current business plan: nothing. The time to get out from this outdated business plan is now-- even if I end up jobless.
 
"Hey flywolf. I was thinking about this a few days ago. If the merger does go through and we start the training portion for you guys as to the
Airtran, read Eastern, way of doing things. (sorry couldn't resist). You guys are going to be in for quite a shock as to the corporate culture around here from Captains authority / Chief pilots office and so forth."


Regarding "Captain's authority" I think they don't have enough sometimes especially with some of the BS that goes on everyday in the airline business but it's kinda funny about a certain few that think they own the place. Not only do they know everything there is to flying the 717 but they know what passengers we should wait for, what gate they should go in, which flights we should hold out, how we should compensate misconnects, and what the big picture looks like...

Granted it's a very select few...less than 10 but they do take it to the extreme. CEO behind the yoke syndrome
 

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