I don't understand the point of this. If Air Tran wants to grow, then grow. Get some airplanes and start service to new cities. Why would you force a merger on someone who doesn't want it? Do they really think that is good for business?
Obviously JL does...
The man's smart about business, no two ways about it. I don't like the move, but I'm not an MBA graduate with airline management experience and a proven track record for profitability in the worst of times.
If he says it's worth it, I gotta believe the man.
Our contract is another issue... That's management trying to get the best value out of US, and up to US to get the best working conditions possible without "breaking the bank".
On the other hand, if it is something that Midwest stockholders want, then why is their management fighting it?
Because their senior management has NOWHERE to go where they will make anywhere NEAR what they're making now.
They're protecting their jobs, and I personally expect the Midwest Board to say "No" to JL based on the closing price of the AAI combined with the cash to still be lower than TPG/NWA's all-cash offer while secretly loving the idea of remaining in control with their salary/benefit package.
I believe this saga will continue to run for a bit, and if NWA gets MEH, you can bet on initial small growth through RJ's, then some draconian rules put on MEH's operation as to not threaten NWA, a few tweaks here and there operationally to start showing some profit (fuel sharing is going to be a nice savings to their bottom line in lower fuel costs), then IPO it later down the road, but guaranteeing MEH doesn't grow much bigger than they currently are now and guaranteeing MEH can't compete on any of their prime routes.
Been there, seen that, have the t-shirt.