Latest rumors about Midwest

[Colonel Savage]

...spending all the cash in the bank and loading up an a troubled carrier doesn't seem like good business. Better to stick with the current plans for MKE and let the DAL/NWA thing settle out and apply for more gates that way...

Gotta say I like that plan...Someone hire this man!!

 

[CitationLover]

I hope AirTran doesn't consider a buyout of Midwest from NWA if the opportunity presents itself. It's overpriced considering the state of the industry, and for TPG/NWA to make any money off the deal they'd have to ask for much more than AirTran should be willing to pay. In addition, AirTran is well enough set with cash for this current economic crisis; spending all the cash in the bank and loading up an a troubled carrier doesn't seem like good business. Better to stick with the current plans for MKE and let the DAL/NWA thing settle out and apply for more gates that way, and watch what happens to Midwest with the merger in the meantime.

Being forced to sell something drives the price WAY down. The market cap of AAI right now is close to the value of the MEH buyout last summer. There is no way DAL/NWA/TPG could command a price like that in this environment. AAI's "cash" offer was really using MEH's cash anyways and I am sure some accountants could get creative in a fire sale.

Our MEC stated that TH's first choice, before AAI's initial offer, was a code share with Delta. It looks like he got exactly what he wanted in the end, albeit he now has a boss at TPG (Dick Shifter) and not Wall Street.

 

[Eagle757shark]

I hope AirTran doesn't consider a buyout of Midwest from NWA if the opportunity presents itself. It's overpriced considering the state of the industry, and for TPG/NWA to make any money off the deal they'd have to ask for much more than AirTran should be willing to pay. In addition, AirTran is well enough set with cash for this current economic crisis; spending all the cash in the bank and loading up an a troubled carrier doesn't seem like good business. Better to stick with the current plans for MKE and let the DAL/NWA thing settle out and apply for more gates that way, and watch what happens to Midwest with the merger in the meantime.

AirTran is not commenting. Why, AirTran may be involved in something totally different therefore making this a non-issue. For those that work at AirTran know what I mean. There have been many rumors and speculation about mergers among the low cost carriers. Everyone is talking about the legacies getting larger. Hey, the low-cost carriers may get in the game as well. Example, a few articles hint to this today, the day after the announcement of Delta and Northwest: Carriers like American and Continental may look to acquire smaller carriers like Alaska or others to bulk up. Southwest's CEO was quoted as saying that if consolidation begins in 2008, Southwest would be apart of a merger in 2008. So there may be more happening than we all know. In fact more is happening than we all know at this point. Stay tuned!

 

[Captainjerky]

AirTran is not commenting. Why, AirTran may be involved in something totally different therefore making this a non-issue. For those that work at AirTran know what I mean. There have been many rumors and speculation about mergers among the low cost carriers. Everyone is talking about the legacies getting larger. Hey, the low-cost carriers may get in the game as well. Example, a few articles hint to this today, the day after the announcement of Delta and Northwest: Carriers like American and Continental may look to acquire smaller carriers like Alaska or others to bulk up. Southwest's CEO was quoted as saying that if consolidation begins in 2008, Southwest would be apart of a merger in 2008. So there may be more happening than we all know. In fact more is happening than we all know at this point. Stay tuned!

Dammit, everyone remember your Powerball tickets for tonight. And if you win, remember I told you to do it, so I'll expect a kickback... This airline thing is getting scary...

 

[SkiFishFly]

The best thing that happened for AAI

in 2007 was NWA and TPG paying waaay too much for Midwest. Hopefully our management is smart enough to sit back and let this one play out. No sense spending any cash we don't have to spend.

We have 4 gates in MKE now. We can run a heck of a lot of flights through 4 gates every day.

 

[CitationLover]

We have 4 gates in MKE now. We can run a heck of a lot of flights through 4 gates every day.

That is EXACTLY where DAL/NWA wants you at, 4 gates.

 

[Sunking]

That is EXACTLY where DAL/NWA wants you at, 4 gates.

And that's exactly how the DOJ will look at it too!

 

[Captainjerky]

Mke

I'm not sure how much say NWA/DAL would have in gates in MKE. It's not their call who gets them; now, if they give up some, that's obvious. But when AirTran applied for more gates in MKE, it went through the county fast and without problems. I figure if there's a way for the airport to make more money via renting AirTran more gates, it'll happen, there's room to grow in MKE with the gates they already have built.

 

[Thunderchief]

I'm not sure how much say NWA/DAL would have in gates in MKE. It's not their call who gets them; now, if they give up some, that's obvious. But when AirTran applied for more gates in MKE, it went through the county fast and without problems. I figure if there's a way for the airport to make more money via renting AirTran more gates, it'll happen, there's room to grow in MKE with the gates they already have built.

Good point, I'd be curious to know how many of the non-Aitran gates on the new wing are partial use leases. AiTran may be able to pick up two or three gates for an additional couple of flights on each gate a day.

 

[FlyWolf]

As a matter of fact there are sevral available gates right now in Milwaukee, you don't have to wait for Delta/NWA to give up gates.

 

[Thunderchief]

As a matter of fact there are sevral available gates right now in Milwaukee, you don't have to wait for Delta/NWA to give up gates.

What concourse are they on?

 

[CitationLover]

What concourse are they on?

Not AAI's current one. It's old gates are being used sparingly by Apple Vacations or Funjet Vacations. The old concourse is where the gates are.

I am sure AAI will not expand at MKE until it sees how well the summer looks (as it's expansion hasn't really yet begun). If their LGA (and possible DCA) runs yield well, I am sure they will expand. This is all provided Fuel prices do not spiral further out of control.

Articles are already appearing in the local MKE papers asking Sen. Kohl to require Midwest to be sold as part of this deal.

http://www.jsonline.com/story/index.aspx?id=740301

Kohl should consider forcing the sale of Midwest as a condition of the merger between Delta and Northwest. This would allow a Milwaukee-based group of investors, or another carrier, to acquire the airline. He should not be swayed by the non-binding promises made by airline executives; I believe this latest act fits perfectly in the plans they had for Milwaukee from the beginning.

 

[RIDETHELIGHTING]

Its the in between time right now and I have been watching the loads out MKE. There running about 85-90% right now on most days. I know its about yields, but if you look at our prices there not that cheap.

 

[FlyWolf]

Yes, the gates available are in the old terminal.

 

[FlyWolf]

Management last town hall meeting, some one asked why we don't increase the ticket prices, they said they can't because of the competition and the economy. We won't be charging for a second bag yet.

Also they are working very hard on the new seat configuration, they said it will save us 35 Millions

 

[FlyWolf]

Big % of our east cost market is business travelers, they will automatically get the 2X2 seats now with 3 inch more pitch, the bargain travelers will find great fares on the 3X2 seats section and will have to pay more for the upgrade.

 

[FlyWolf]

One piece of a good news is that we will be transitioning EWR back slowly to Midwest from Skywest. Its about time.

 

[eightdriver]

Management last town hall meeting, some one asked why we don't increase the ticket prices, they said they can't because of the competition and the economy. We won't be charging for a second bag yet.

Also they are working very hard on the new seat configuration, they said it will save us 35 Millions

Yeah, but lets make sure we re-configure with only 99 seats instead of the 117 that we should have... Hucky will forfeit 18 revenue seats to avoid paying a $18/hr dumbass FA to sit in the jumpseat that is already installed. Brilliant!!! I am sure Mary Blundell had a hand in this decision as well...

 

[deadstick]

So is "Midwest Class" still coach?

 

[contrail67]

Why is it when NWA is involved in anything it just screws people?