AirTran's Midwest Merger Presentation

[EX_CV580FR8Dawg]

Im sure they will ultra....not too fond of MEH it seems?

 

[ultrarunner]

Im sure they will ultra....not too fond of MEH it seems?

Not at all. Great product, great folks. I just don't think the product is viable in today's market place, in it's current form.

Over that last several decades, airline revenue load factors have averaged about 55%. You just can't make consistent money flying around with half the seats filled. Look how quick it caught up with legacy carriers. And flying around a 110 seat airplane with 80+ seats in it REALLY means you have to charge a premium fare. But in MKE you have a dwindling population and those which are left are very price sensitive.

Regardless of the spin you read, if MKE becomes an LCC base, they will do well both on the business side and the leisure side.

Midex just can't tolerate excessively high costs for any significant period of time. They can only beat up the working groups so much.

The shift is happening. Think about it, they are growing the airline by contracting out the flying. Do you think that some of SkyX flying won't be replaced? I think it will. And if MEH replaces SkyEX flying with contract work, is there any reason not to replace unprofitable MidEX flying with the same?

Good topics for discussion.

 

[EX_CV580FR8Dawg]

Point taken Ultra.....Yes I agree, a very good topic for discussion. Well if anything, our load factors are up and I think when we do get the next fleet type at MEH there will be a two- class configuration albeit a more comfortable one than what you see at AirTran. If you want to believe the schpiel that YX is giving us SYXers is that this is currently the fastest and most economical way to grow SYX short term (5yr contract) without using their own funds. Which they need in anticipation of the new fleet type. Now as you probably can tell by my previous posts, I don't know sh!t so if someone knows what they are talking about, please expound!

 

[appendix]

Uncle Tim said he will sell at the right price. They hired Goldman Sachs to figure out exactly how much MEH is really worth.

MEH has to make a deal with AirTran, shake hands and be friends or else AirTran will pour millions of $ into MKE flying and put MEH out of bussiness in a couple of years (hostile) anyway.

For the Skyway pilots, the AirTran deal is a life saver and a well deserved growth opportunity for the pilots and FAs who have worked so hard for so many years with so many empty promises (analysis paralysis by magmt)!

 

[pilotmyf]

For the Skyway pilots, the AirTran deal is a life saver and a well deserved growth opportunity for the pilots and FAs who have worked so hard for so many years with so many empty promises (analysis paralysis by magmt)!

Mmmmm Koolaid!!!!!!

 

[pilotmyf]

I can't imagine they are excited about anything right now...oh wait, they're getting two more Do-jets. Never mind.

Don't be a dick

 

[EX_CV580FR8Dawg]

Midwest hires Goldman Sachs as adviser

The parent company of Midwest Airlines said today it has hired an investment banking firm to provide strategic advice, one week after it was disclosed that the company had rejected an unwanted takeover offer from AirTran Airways.

Midwest Air Group Inc. (MEH) announced that it has hired Goldman, Sachs & Co. (GS) as a financial adviser. The announcement came at 3:30 p.m., after trading closed. Midwest stock closed at $11.07 a share, down 4 cents.

Midwest Air will "be working with its financial adviser to further develop the company's strategy to grow its business and maximize shareholder value," said a statement from the Oak Creek-based company. The statement provided no other information on the decision to hire Goldman, Sachs, and a Midwest spokeswoman couldn't be reached immediately for comment.

However, the hiring of an investment banking firm like Goldman, Sachs is often done by companies that are evaluating business strategies, as well as considering acquisition offers.

"I think that Midwest might have realized there was a little more value it could unlock as a company. And they are just exploring it," said Chris Armbruster, a research analyst for Al Frank Asset Management Inc., which owns a 1.3% stake in Midwest.

By hiring Goldman Sachs, Midwest can better determine its value to a company that might want to acquire it, Armbruster said.

AirTran (AAI) disclosed last week that Midwest had rejected its $290 million offer. AirTran made the announcement in hopes of bringing shareholder pressure to bear on Midwest's board of directors to reconsider the offer.

That offer was at $11.25 a share, which some analysts have said is too low. AirTran Chairman and CEO Joseph Leonard said AirTran would be willing to pay more if it could review Midwest's proprietary financial data, and determine whether the company had additional value beyond what was reflected in the initial offer.

Midwest's ongoing strategic growth plan, which includes a new regional jet service that launches in April, has a "significantly higher" value than the AirTran offer, Timothy Hoeksema, chairman, chief executive officer and president, said this week.

That plan forecasts 10% annual passenger capacity growth - and even higher profit growth - over the next three years. It was formerly detailed on Thursday, but drew little reaction from the stock market.

Hoeksema also told reporters that the company's board would have a duty to shareholders to review any "credible" offer.

Hey appendix...you also forgot to add that they are working with GS to further their growth strategy. Funny how you leave key points out of your statement? How's the Tranny Koolaid tastin'?

 

[RIDETHELIGHTING]

That dude looks like he is almost dead holding that sign in your avart. Maybe he needs a cookie?

 

[FlyWolf]

That dude looks like he is almost dead holding that sign in your avart. Maybe he needs a cookie?

lol..