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.