Here's why Midwest wouldn't sell to Airtran

[Schwanker]

Continental bought out of NWA as soon as they could. They called it "Independence Day" at CAL. Cost CAL a lot of cash but they wanted out of NWA's grasp as soon as possible.
Good luck.

They're still not completely out of NWA control as NWA still has the "golden share." This could cost a very shiny penny to buy back if consolidation hits.

Schwanker

 

[Britpilot]

They're still not completely out of NWA control as NWA still has the "golden share." This could cost a very shiny penny to buy back if consolidation hits.

Schwanker

That is true, I forgot about that.

 

[Britpilot]

my understanding was they both own 15% of each other. is this not the case anymore?

Never heard that one before.

 

[DH106]

Getting back to Uncle Tim getting rich, he disgusts me. He fired and furloughed hundreds of people, and now he's rewarding himself with $10 million. The man is disgusting... if you can call him a man.

 

[CitationLover]

Getting back to Uncle Tim getting rich, he disgusts me. He fired and furloughed hundreds of people, and now he's rewarding himself with $10 million. The man is disgusting... if you can call him a man.

anyone who owned stock is getting money. tim didn't issue more stock strictly for himself.

 

[RVSM]

Folks keep thinking that that deals like this need to put the employees first...and those folks don't understand how the system works. SHAREHOLDERS come first folks, that's the bottom line.

And look how that it working out for America as a whole.

 

[Propsync]

anyone who owned stock is getting money. tim didn't issue more stock strictly for himself.

I think you missed what DH106 was trying to say. Tim mismanaged Midwest wonderfully to a point where they had to sell to somebody. The cash was better for the shareholders, management included. If the sale was to Airtran, I don't know if management's shares would have a vesting period or not. I think 106's point was Tim's getting 10 millon cash for being a complete f-up.

I'm really curious what TPG will do here. This deal is so overpriced, I don't know how they can possibly put any more into Midwest and get any decent return on the investment. The murder that Skywest alone is doing to the RASM/CASM on the connect side is shocking. I'd guess as soon as Skyway can get out of the EAS, they'll be gone. I just don't see anything else but Northwest taking over and putting 170/5's (whichever was ordered) and 900's to replace the 717 fleet. My worst fear is a staple/furlough/J4J to Compass/Mesaba. Some body tell me this will work out any better than this.

 

[CitationLover]

I think you missed what DH106 was trying to say. Tim mismanaged Midwest wonderfully to a point where they had to sell to somebody. The cash was better for the shareholders, management included. If the sale was to Airtran, I don't know if management's shares would have a vesting period or not. I think 106's point was Tim's getting 10 millon cash for being a complete f-up.

I'm really curious what TPG will do here. This deal is so overpriced, I don't know how they can possibly put any more into Midwest and get any decent return on the investment. The murder that Skywest alone is doing to the RASM/CASM on the connect side is shocking. I'd guess as soon as Skyway can get out of the EAS, they'll be gone. I just don't see anything else but Northwest taking over and putting 170/5's (whichever was ordered) and 900's to replace the 717 fleet. My worst fear is a staple/furlough/J4J to Compass/Mesaba. Some body tell me this will work out any better than this.

with Air Tran a change in control in management would have happened and then their "golden parachutes" would have kicked in and thus Tim would have gotten MORE (a change in control would immediately vest any outstanding shares, etc for mgmt personnel, its part of their poison pill). i think it was more pride in Tim's part for not wanting the Air Tran deal to go through. as far as his "mismanaging" did anybody manage their airline well post 9/11 that had been around for 20 years or more? make no mistake, he doesn't perform, he will be gone according to TPG's past history.

as far as growth, they will get 12.5% growth strictly via the 717 new seating configuration without spend that much money. we shall see what will replace the MD80.

i don't buy a staple to compass. has any airline that american bought stapled to eagle's list? no. it will work out better than you think.

to me the worst thing of this deal is still the uncertainty. with the contract entering negotiations in 2008 i am sure we will use some bargaining capital on mergers and acquisitions that we could have used on getting back some of the concessions.

all this and the bears are 1-3 and the packers are undefeated............