Ty Webb said:
Why the hell would they buy Frontier?
AirTran would be a much more logical choice, with a heavy East coast presence, similar fleet and $350 mil in cash.
Since I don't have anything else better to do this Sunday morning than make WAG's about mergers...
How about AirTran buying (or doing a hostile takeover of) Midwest then Alaska merging with the AirTran/Midwest airline. The new airline would have a West/East coast and Midwest/South presence. Not to mention, AirTran and Midwest share a commonality - the original RJ, DC-9, er 717, Alaska/Midwest share the MD80 commonality, and Alaska/AirTran share the 737 commonality. The new airline would have only 3 types - 717, MD80 series, and 737. Don't forget, Boeing wants to remove any MD-series planes from service and sell more 737's. So, in theory, if this three-way merger were going to happen, it's not inconceivable that Alaska and Midwest would replace their MD80's with 737's and AirTran/Midwest would replace their 717's with 737's. Now you have you a competitor to SWA and flying only one type of plane.
Ty, I know you've already speculated that an AirTran/Midwest merger isn't going to happen (and I believe Midwest's TH will not let it happen either - he'll go down with the ship), but I've heard from several different sources that AirTran execs were at Midwest's HQ recently. Who knows why but Midwest's stock has been climbing this week and several people who are investors are hearing the same merger talk. My concern would be Skyway in a merger scenario. Alaska has Horizon and AirTran doesn't believe in the RJ feed. Merger Horizon with Skyway? Or maybe Midwest MEC and Skyway MEC will agree to a seniority list integration before any merger was finalized.
Who knows...I'm only along for the ride. Time to find a bar...
We know return you to your regularly scheduling programming...
HMM