Airtran may not give up

[jetdawg]

AirTran vows to push ahead with Midwest bidAirTran vows to push ahead with Midwest bid
Exec says carrier may extend Feb. 8 deadline for tender offer

By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 01/26/07 AirTran Airways will do "whatever it takes" to complete a buyout of Midwest Airlines, a top executive said Friday, despite stiff resistance from the Milwaukee-based company.
"We can't be persuaded to end our bid," AirTran finance chief Stan Gadek said, adding the airline is considering an extension of the Feb. 8 deadline on its tender offer for Midwest stock.

​

Bloomberg

(ENLARGE)​

Fuel costs were up 20 percent in 2006, AirTran executives said, though prices are coming down this year.

His comment came as AirTran posted a fourth-quarter loss, citing high fuel costs, fleet expansion and a costly promotion with the Wendy's hamburger chain.
But the company's full-year profit nearly doubled, marking its eighth consecutive annual profit.
The airline, headquartered in Orlando, said it lost $3.3 million, or four cents a share in the three-month period that ended Dec. 31. The loss was in line with Wall street estimates, and it compares to a $369,000 net profit during the same period in 2005.
The fourth-quarter loss came despite a 13 percent climb in revenue to $462 million.
Gadek said a promotion last year with Wendy's accounted for $1.9 million of the fourth-quarter loss. Wendy's customers could collect drink cups for free flights.
The quarterly loss comes as AirTran seeks to convince Midwest shareholders to accept its tender offer and merge the two carriers. Midwest on Thursday posted a profit and contends its standalone growth plan is better.
"The year 2006 was very challenging with our average fuel prices again rising over 20 percent for the third year in a row," said Joe Leonard, AirTran chairman and chief executive.

AirTran said it made money in November and December, but that wasn't enough to offset losses from October.
For all of 2006, AirTran reported $15.5 million in net income or 17 cents a share, compared to $8.1 million, or 9 cents, in 2005.
Going forward, AirTran has slowed new aircraft deliveries. The airline took on 20 new Boeing 737s and two 717s in 2006.
AirTran's $345 million takeover bid for Midwest is an attempt to gain a second hub. Midwest has rebuffed AirTran's overtures so far, however, and the Milwaukee carrier has numerous "poison pill" provisions it can use to block an unwanted merger.
AirTran costs surged 13.4 percent in the fourth quarter. But fuel costs have declined sharply in the last two months.
The airline's load factor — the percentage of seats filled by paying customers — fell to 69 percent in the fourth quarter from 71.5 percent as seat capacity surged 20 percent.
"We are encouraged by lower capacity levels in our markets and by recent declines in fuel prices," said Bob Fornaro, AirTran president and chief operating officer.

 

[Eagle757shark]

Gadek said," a promotion last year with Wendy's accounted for $1.9 million of the fourth-quarter loss. Wendy's customers could collect drink cups for free flights."

The thing that I find so interesting, these guys come up with these crazy schemes and cost the company millions of dollars. They keep their jobs and in some cases get promoted. The union needs a seat on the board so that when crazy schemes like this cost AirTran millions of dollars, someone is held accountable. If the company did an audit on our scheduling department, we would probable find they cost AirTran the other 1.4 million dollars that the company lost. But some how the pilots get blamed and everyone is told that our contracts cost the company money! BULL, it is incompetence and a lack of accoutability. Again AirTran lost 3.3 millions dollars in the 4th quarter but still made 15.5 million for the year. By their own admission we definitely could have made more. Where is the accountability? With a seat on the board, you can definitely demand one! This is why concessions should not even begin to enter into the negotiations with screw ups like this.

 

[WalterSobchak]

Fairly certain the guys that came up with the Wendy's promotion were politely escorted from the building, so to speak.

Yet, Tennessee Tad got bumped up to VP status...

 

[Oakum_Boy]

That is a neat idea. Collect drink cups from a fast food dive, and redeem them for travel. No wonder I don't get paid anything.

 

[Ty Webb]

If you factor in the excessive cost of the current sick call policy (KG) the Christmas scheduling snafu (JT) the escalating attrition due to the degradation of working conditions (KG, SK, JT, JL) and that Wendy's dumpster-dive . . . we certainly would have made a profit. . . . and that's not even touching on the revenue side of the house.

The fact that we are going to be paying 717 FO's bypass pay because of the attrition levels, that should be a message loud and clear . . . not to mention we even have Captains leaving!

Time for a corporate house-cleaning, IMHO. . . . . .


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[metroplex]

no, it's not all gold at airtran.??? No wonder ME does not want anything to do with them.Please tywebb, don't answer.....

 

[737 Pylt]

AirTran vows to push ahead with Midwest

Thanks for the info jetdawg, let's hope this thing goes through sooner rather than later!

737

 

[Ty Webb]

Please tywebb, don't answer.....

Sorry, but I couldn't let your little piece of stupidity go unanswered. If you don't like my replies, maybe you should engage your brain before posting, or simply refrain from posting altogether.:laugh:

no, it's not all gold at airtran.??? No wonder ME does not want anything to do with them.

The reason MEH "doesn't want anything to do with them" is because the top executives of Midwest are in a fight for their jobs.

They finally had a good quarter . . . that's great, but less then two years ago, they were burning the furniture to heat the house, and their junior guys were recently recalled from years of furlough. A merger with AirTran would be a raise and a quicker upgrade for every pilot on the property at Midex.

AirTran has had 7+ years of profitability, all while growing at 20% or more each year, and the pilot group went from 600 to 1500. Yes, all is not perfrect here, but it ain't that bad, and when we get our new contract, it will be even better.

 

[SWA/FO]

The union needs a seat on the board

dats what UAL had, before.

 

[Eagle757shark]

dats what UAL had, before.

I didn't say employee owned! I said a seat on the board for business purposes. It is time we pilots stop thinking like blue collar laborman and start thinking like the executives we are. We manage a very expensive piece of equipment and have a lot of lives in our hands. The decisions we make, managing our aircraft, the altitudes and speeds we ultimately fly at, diversions, weather avoidance, all the various safety issues, managing an entire crew, these are management decisions that affect the companies bottom line, HOW MUCH MONEY WE MAKE! A seat on the board allows your voice to truely be heard. You have a say in the direction your company is being run. When the company makes poor decisions, you have a say. In addition to fair wages, every pilot should increase their worth by being tied into the performance of the company with stock options, and profit sharing. I've worked for companies where the managements goal was their golden parachutes. Every crewmember on this board is vested in their company once they complete training. All I care about is a management team that is looking after my best interest. My interest is that AirTran remain profitable. If AirTran remains profitable, I get one more year toward retirement and doing what I love to do. If my union has a seat on the board, they have a say in the business which I'm vested. Folks that make mistakes and cost my company money, I have a say rather they stay or go! We have allowed airline managements all over the globe to take advantage of us. It is more evident everyday. Look at the lost pensions, lost wages, and all the contracting going on. The only way you control your future is to truely have a say and be able to do something about it. Whereever you work, your union needs a seat on the board! Think like an executive mr. pilot, not a blue collar worker and we may eventually be able to change this business.