Midwest attacks Airtran

[meanstreak]

Ouch!!!!

http://biz.yahoo.com/prnews/070228/nyw054.html?.v=77

 

[MD80DRVR]

Ouch!!!!

http://biz.yahoo.com/prnews/070228/nyw054.html?.v=77

That was pretty harsh!

 

[400ADude]

Spot on.

 

[FlyWolf]

Really didn't think our management had claws , March 8th. is right around the corner and airTran will have to disclose how many shares have been tendered.

 

[ACL65PILOT]

I am glad to see them go after Airtran. It would be a shame for one of the few good airlines to be lost.

 

[maxblast72]

"To further compound the problem, AirTran has committed to purchasing an
additional 60 planes with no clearly articulated strategic plan to
deploy and utilize these planes on a profitable basis."


I am not a business major so maybe someone can explain this to me. How is having 60 airplanes bought in 2003 somewhere in the mid 30 millions range a bad thing when the airplanes are now going for 5 to 10 million more in the world market (and maybe more with Southwest driving the demand up). I believe we have already sold 2 to a Nigerian airline for a decent profit.

Having the ability to grow if the markets are there or having to the ability to sell planes for a profit seems like a good spot to be in to me.

 

[General Lee]

Well, Airtran is getting a bunch of planes and so far haven't given anyone a clue on what the plan to do with them, or where they plan to put them. ATL is maxed out, with no new terminal in sight for awhile. I guess a good place to put them would be Millwakee and replacing Midwest's older MD80s.

Bye Bye--General Lee

 

[maxblast72]

Actually, Atlanta isn't maxed out yet. Per Bob Fornaro on the last earning conference call, we were operating 240 departures a day out of Atlanta but had the gate footprint to do up to 300 departures a day since the spent the effort putting extra flights into the use em or lose em D gates that opened up last fall. That means a 25% growth of Atlanta possible during 2007 (I guess that is how we can start Newburgh, Phoenix, San Diego, St. Louis, and Charleston all to ATL).

 

[AFcitrus]

WOW! Those are some pretty scathing acusations being thrown by Midwest. However, I had to laugh on most of them. It's funny how you can make statistics say anything you want as long as you spin them your way. For Example - AAI has lost money 3 of the last 4 quarters while Midwest hasn't. This failed to mention AAI has made increasing profits for the past 8 years while Midwest has lost money the last 5 years (with the possible exception of this past year). Here's another doosy - Midwest loads increasing while AAI's decreasing. Fails to mention that this a normal initial occurence when a company adds capacity and grows a market. Meanwhile a stagnant company adds nothing in over 5 years, their loads will grow - but for how long.

It's interesting that AAI has had nothing but good things to say about Midwest through this effort. With the exception of comments about the Midwest board who are more interested in pulling the wool over their shareholders eyes with some warped RJ expansion program so they can keep there cushy "cash cow" jobs. And then a week before the deadline, Midwest comes out bashing AAI. Classy, Real classy.

I've found in life that usually when a company/individual goes on the defensive it is because they have run out of intelligent ideas and are getting desperate. It will be interesting to see how many shares have been tendered but you can bet Midwest management knows that number and based on this unprofessional bashing I'm guessing that number is signifigantly higher than most people think.

Incidentally, the views/opinions expressed by Midwest in this story are completely out of line with what industry experts believe. Who would you believe more - objective industry experts or the beseiged leadership of an airline whose shareholders may be starting to see the light.

I wish the best for all Midwest and AAI employees but quite frankly I'd rather this aquisition not go through. Let's see how big Timmy boy talks when AAI and NWA come rolling through MKE profitably charging half of what Midwest needs to charge to make a profit. Let the capitalism roll!!!

 

[metroplex]

NWA and Citrus tried that before. Did not work, because their product sucks.Airtran employees have even indicated that things are slowing down.Any reason for the attrition at Airtran.....maybe pilots see the writing on the wall.