Airtran may not give up

[-9Capt]

The union needs a seat on the board so that when crazy schemes like this cost AirTran millions of dollars, someone is held accountable. .

I agree with you in concept, but it will never happen. Our current management would shut this place down rather than give up an ounce of operational control. That's the mentality down on Orlando and I don't see it changing.

 

[FlyWolf]

Did you guys hear any new news at Airtran about the merger?

edit; here is the latest article I found
http://www.jsonline.com/story/index.aspx?id=557863

 

[jetdawg]

Airline has been talking to Midwest's top investors
Milwaukee Journal Sentinel 01/27/2007
Author: Tom Daykin
(Copyright 2006)


AirTran Holdings Inc. believes it's making progress in persuading the largest shareholders of Midwest Air Group Inc. to go along with AirTran's hostile takeover attempt, Chairman Joe Leonard said Friday.

Leonard, speaking to a reporter after the company announced its fourth-quarter earnings, said AirTran executives have spoken "numerous times" to Midwest Air's 20 largest shareholders, who together control around half of the company's stock. Leonard believes most of those shareholders are inclined to accept AirTran's offer of $13.25 a share.

Leonard said most of those institutional investors have not divulged whether they will tender their shares to AirTran before the cash-and-stock offer expires on Feb. 8.

But, he added, "We've got a very positive feeling from them."

Most of the institutional shareholders contacted by the Journal Sentinel since the takeover battle started in December have declined to comment on the matter.

Midwest Air spokeswoman Carol Skornicka said any discussion of whether the shareholders will accept AirTran's offer amounts to speculation.

"The real test will come on Feb. 8," said Skornicka, senior vice president of corporate affairs at the Oak Creek-based company, which operates Midwest Airlines Inc. and Midwest Connect.

When the offer expires, AirTran is required by law to disclose how many shares have been tendered to the company. AirTran also has the option of extending the offer.

Even if it falls short of a majority of the shares, Leonard hopes AirTran can secure enough shareholder support to force Midwest Air's board to negotiate a sale of the company. The board this week recommended that shareholders not accept the offer, which it called inadequate.

AirTran two weeks ago raised its offer from the initial price of $11.25 a share.

AirTran reported Friday a fourth-quarter loss of $3.3 million, or 4 cents per share, as higher fuel prices and other expenses overshadowed an increase in revenue. AirTran's loss, which compared with a break-even performance from the fourth quarter of 2005, was in line with analysts' forecasts. Revenue was $461.9 million, a 12.7% increase from $409.9 million.

For the full year, Orlando-based AirTran earned $15.5 million, or 17 cents per share, a 92.1% increase over $8.07 million, or 9 cents per share. Revenue was $1.89 billion, a 30.5% increase over $1.45 billion.

Midwest Air reported Thursday fourth-quarter net income of $3.6 million. For the full year, Midwest Air earned $5.4 million.

Midwest Chairman Timothy Hoeksema cited those earnings as proof that the company's growth plan is working, and Midwest shareholders are better off not accepting AirTran's buyout offer.

Leonard said comparisons between Midwest Air's quarterly profit and AirTran's loss will have little effect on whether Midwest shareholders decided to accept the buyout offer.

He said the company's fourth-quarter earnings were partly affected by rival Delta Air Lines Inc. adding passenger capacity in Atlanta, AirTran's biggest hub. Delta has since said it will reduce capacity at its Atlanta hub, which analysts said will benefit AirTran.

After its earnings were disclosed, AirTran's stock closed Friday at $11.16, down 34 cents. Midwest stock closed at $12.93, up 26 cents.

 

[Lear70]

Delta has since said it will reduce capacity at its Atlanta hub, which analysts said will benefit AirTran.

Well there's at least ONE good piece of news in all that.

 

[newnan]

http://www.wiscnews.com/bdc/business/116693 another article today

 

[FlyWolf]

Well there's at least ONE good piece of news in all that.

Lear70, if you think Delta reducing capacity in Atlanta which is your main hub, is good news, and you know that some of the 4th quarter loss Airtran posted was due to Delta increasing capacity in Atlanta, you should be VERY happy that your management is pushing for this deal with Midwest and trying to get a couple of other bases outside of Atlanta.

I do know very well where you stand in the merger issue, "and I don't blame you since I have been dreaming about the left seat here for a decade", but I also know the stronger the company you work for the more stable is your own job.

I am sure you see your management is pushing very hard for this deal, there must be a reason. Think about it.

I personally was one of the few who kept an open mind and was even excited sometimes about the whole deal but after our union last letter, I do hope for your sake and mine that this deal doesn't go through now. (not that we can do anything to change the outcome anyway)

Said that, I wish you guys all the best

 

[Lear70]

Yeah, I saw that letter - our MEC got it out to the P2P guys (I don't know why they never distributed it via blast email or posted it on the NPA site for people to see).

It was very interesting, especially considering it came pretty quickly after your MEC had a pow-wow with our MEC. Wonder if the Midwest MEC considered it a "negative" meeting and if that was any basis for the later change of position?

One can only speculate...

As far as us needing another hub; you're preaching to the choir. I agree 100%. I'm *hoping* that STL works out and we can do more West-Coast ramp-up with it.

I also like that DAL is backing off again. They lose big-time every time they try to match our fares (simply because of their CASM, which post-BR we'll STILL be quite a bit lower).

The combination of those two will, hopefully, make for an even MORE profitable year in 2007. Especially if we can avoid fast-food promotions, concentrate on a REAL and EFFECTIVE marketing strategy, and keep our airplanes out of the mud.

I also look to see a lot more contract progress made 2nd or 3rd quarter. This time next year we might actually be working under a new (and more lucrative) Agreement!

Good luck to you guys, too! I'll support whatever happens (like you said, not much choice in the matter), and might as well make the best of it. :beer:

 

[FlyWolf]

Especially if we can avoid fast-food promotions

LOL, Agree

 

[FlyWolf]

It was very interesting, especially considering it came pretty quickly after your MEC had a pow-wow with our MEC. Wonder if the Midwest MEC considered it a "negative" meeting and if that was any basis for the later change of position?

No, not at all, as a matter of fact here is what our union mentioned in the last letter:

"Midwest MEC indicated that the Midwest pilot group will continue to work with the AirTran pilots across company lines regardless of whether a merger occurs. “As AirTran pilots continue with their negotiations, we will help them achieve the best possible contract. Midwest pilots are preparing for negotiations next year, and every pilot group that achieves its contract goals enhances our collective strength at the bargaining table,” they said"

 

[fletch717]

I had a conversation with Bob F. (#2) on friday night. He indicated this deal is far from over. I asked what our prognosis would be if this deal does'nt happen. He said we are not in any financial trouble and would continue with our business plan to expand. I think our flexibility is key here. If the medex deal does'nt go, we will move in a different direction.

Fletch