AirTran Possibly Raising Cash for ???

[FL717]

AirTran Holdings, Inc. Files Shelf Registration Statement
Tuesday August 16, 4:30 pm ET

ORLANDO, Fla., Aug. 16 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc. (NYSE: AAI - News) today announced that it filed a shelf registration statement with the Securities and Exchange Commission (the "SEC") relating to future offers and sales by AirTran of up to $225,000,000 of its debt securities, preferred stock, common stock or warrants to purchase any of these securities.

Although AirTran does not have any commitments or immediate plans to sell securities under the registration statement, AirTran expects to use any proceeds it may receive from any sales by it for general corporate purposes, which may include the retirement of debt, additions to working capital, capital expenditures, acquisitions of other airlines or their assets, and other investments in strategic alliances, code-share agreements or other business arrangements.

The registration statement has been filed with the SEC, but has not yet become effective. The securities may not be sold, nor may offers be accepted, prior to the time that the registration statement becomes effective. This news release is neither an offer to sell nor the solicitation of any offer to buy any securities. In addition, there shall not be any sale of such securities in any state in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

AirTran Airways, one of America's largest low-fare airlines with 6,700 friendly, professional Crew Members, operates over 500 daily flights to 49 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, where it is the second largest carrier. AirTran Airways recently added the fuel-efficient Boeing 737-700 aircraft to create America's youngest all-Boeing fleet. The airline is also the first carrier to install XM Satellite Radio on a commercial aircraft. For reservations or more information, visit http://www.airtran.com (America Online Keyword: AirTran).

 

[Yank McCobb]

Strike warchest.

Or maybe to buy another carrier...say Alaska perhaps. Someone with a strong presence in the west to compliment their existing route structure.

That's about the best I can do for rumors on short notice.

 

[Phaedrus]

I'd say it's for general corporate purposes, which may include the retirement of debt, additions to working capital, capital expenditures, acquisitions of other airlines or their assets, and other investments in strategic alliances, code-share agreements or other business arrangements.
Just call me Karnac

 

[FL717]

Strike warchest.

Or maybe to buy another carrier...say Alaska perhaps. Someone with a strong presence in the west to compliment their existing route structure.

That's about the best I can do for rumors on short notice.

LOL!

I like your second idea... but if that were to happen, it would probably be the other way around... they would buy us.

Unfortunately the truth of the matter is that even with Alaska's recent wage "concession" (robbery is a better term).... their Pilots still make ALOT more money than us.

I think the money is for a asset purchase of someone or something..... (MidEx is the rumour that refuses to die and in fact has some actual fact to it).

We'll see.

 

[Yank McCobb]

Well, if in fact it has actual fact then you can't argue with that fact.

 

[I.P. Freley]

Maybe they're raising money to buy SkyWest?

 

[roughneck]

They are just trying to keep up with the Jones'. We filed something about a month ago for $995M. They are just trying to keep in step because they know we are usually about 3 steps ahead of them and they aren't sure whats up our sleeve. They are just laying the ground work to try and raise money if we hic-up and they find out what we are planning.

They would have gone for $995M, they just aren't worth enough to get that much.

 

[XRMEFLYER]

They are just trying to keep up with the Jones'. We filed something about a month ago for $995M. They are just trying to keep in step because they know we are usually about 3 steps ahead of them and they aren't sure whats up our sleeve. They are just laying the ground work to try and raise money if we hic-up and they find out what we are planning.

They would have gone for $995M, they just aren't worth enough to get that much.

Where's the LUV?

 

[SDF2BUF2MCO]

Well I did put down my salary requirements on the app. the other day but it wasn't quite that much.

 

[FlyingCricket]

I like your second idea... but if that were to happen, it would probably be the other way around... they would buy us.

Unfortunately the truth of the matter is that even with Alaska's recent wage "concession" (robbery is a better term).... their Pilots still make ALOT more money than us.

Alaska pilots do not make "ALOT" more than AirTran pilots anymore especially when you consider upgrade times. Alaska pilots are taking nearly a decade to upgrade to captain while AirTran pilots are doing it in just less than three years. Alaska new hires have recently been on reserve for 4.5 years while AirTran new hires are getting away with two or three months. Alaska's upgrade time will likely shorten as the rumored hiring there materializes but it will probably not get anywhere close to AirTran. In fact, in a rough straight-pay calculation, based on a 26-yr career at 85 hr's per month using hourly pay rates published on AirlinePilotCentral (not including per diem, retirement, or tax benefits), an AirTran pilot will have earned very slightly more (about $40K more) than an Alaska pilot. This comparison was done with an AirTran pilot upgrading at the end of three years and the Alaska pilot at the end of six years. Note that this also does not include the effects of the time value of money.

I have heard the Alaska rumors from quite a few sources at AirTran. However, no one at Alaska seems to even know what AirTran is ("some sort of regional?", they may ask as they scratch their head). The routes are almost perfectly complementary and the fleet types are very similar. Both airline's fleets are almost exactly the same size (right around 100). AirTran is going to 162 total aircraft and Alaska probably to about 125 or 130 total. Alaska has a lot more market cap and current assets, but AirTran has much more cash on hand. I really have no idea what kind of financial implications any of that has or how it may play out if the two companies were actually talking. If a merger between the two were successful, it would be a formidable company with a strong national presence. It could possibly challenge SWA. We all know, however, how well airline mergers in the past have generally gone.