Midwest getting desparate

[737 Pylt]

In Direct Plea To Shareholders, AirTran Ups Bid For Midwest
Friday January 12, 6:40 am ET

The words of AirTran CEO Joseph Leonard were direct and to the point: "You gave us no choice, but to bring our offer directly to the owners of the company," he said in a letter to Midwest Air Group's board. After Midwest rejected an earlier offer by AirTran to buy it out for $11.25 a share ($290 million) on the grounds it undervalued the company, AirTran upped its bid to $345 million, or $13.25 a share, while taking the case directly to Midwest's board. The offer as it now stands is for $13.25 a share, made up of $6.625 in cash and 0.5884 AirTran shares, and is due to expire on February 8 but could be extended. Midwest's shares ( pictured) rose $0.50, or 3.9%, to $13.40 as a result of the increased offer. The deal comes on the heels of other high profile buyouts in progress in the Airline sector including U.S. Airways hostile bid for Delta and a possible Northwest-Delta merger.

Sounds familiar Joe. I hope you are successful in your takeover.

737

 

[Lear70]

I hope not, but I still think this is a done deal.

In an unrelated thought, did you HAVE to pick that picture as your avatar?

Single most embarrassing moment of the entire season. Unbelievable. They HAD that game, then p*ssed it away...

Oh well, at least Peyton will have a chance for a ring.

 

[737 Pylt]

In an unrelated thought, did you HAVE to pick that picture as your avatar?

Single most embarrassing moment of the entire season. Unbelievable. They HAD that game, then p*ssed it away...

Lear:
I used it because I think the cowboys are a lousy team, as long as Jerry Jones is the owner and wants to pull the puppet strings.

737

 

[Wiskey Driver]

I hope not, but I still think this is a done deal.

In an unrelated thought, did you HAVE to pick that picture as your avatar?

Single most embarrassing moment of the entire season. Unbelievable. They HAD that game, then p*ssed it away...

Oh well, at least Peyton will have a chance for a ring.

Ya know Lear, some people just have no class!! As a Cowboy fan for the past 30 years and a Cowboy fan down to the bone, it pains me to see that he has chosen this as his avatar. The gloves are now off an war is being declared on 737plyt:uzi:

WD.

 

[Whataburger]

Cowboys are definetly lousy. They ONLY made it to the playoffs this year.

 

[Yuppyguppy]

Go Bears!

 

[EMB170Pilot]

what were we talking about?

 

[Taildragon]

I cant ever remember with your avatar :0 give um the O face

 

[gt1900]

Just so you guys know.. As of Jan 31 a total of 38,966 shares of midwest stock had been tendered to Airtran.. Thats an amazing 0.2% of the midwests total of about 18.6 million shares... Thats why AAI had to extend the offer until March 8th... If Airtran is gonna get midwest, they have a long way to go....

 

[Ty Webb]

I wonder why we don't just rescind the offer . . . watch the shares plummet back to 6 bucks, where they belong . . . . and just start buying them up on the open market.

But, what do I know, I'm just a yoke and throttle operator . . . . unlike our highly-esteemed, brilliant management types, that can never do wrong . . . or at least never accept responsibility . . . . . .

If this deal does not go through, then I hope Wall Street will take them to task for the past three years of "buffoonery/bonus/buffoonery/bonus" . . . . but I doubt they will.


.

 

[FlyAirtran]

Just so you guys know.. As of Jan 31 a total of 38,966 shares of midwest stock had been tendered to Airtran.. Thats an amazing 0.2% of the midwests total of about 18.6 million shares... Thats why AAI had to extend the offer until March 8th... If Airtran is gonna get midwest, they have a long way to go....

If I understand correctly, Midwest still refuses to give Airtran a list of the stockholders so they can contact them directly and send the the correct propaganada (I believe they are still in court over this).

 

[mnboyev]

nope...dismissed...

 

[Lifter]

I'm pretty sure the dismissed case was the individual stock owner sueing Midwest.

Midwest Air Group Comments on Dismissal of Shareholder Suit

dap('&PG=INVNWS&AP=1089',300,250);

MILWAUKEE, Jan. 31 /PRNewswire-FirstCall/ -- Midwest Air Group, Inc. MEH, parent company of Midwest Airlines, today commented on the formal dismissal yesterday by Judge David A. Hansher of Linda Garrett vs. Midwest Air Group, Inc. et al, a shareholder lawsuit filed against the company and its board of directors, in Milwaukee County, Circuit Court, Civil Division.




"We are very pleased to see that this suit was voluntarily withdrawn, which allows all of us at Midwest Airlines to avoid the effort, costs and time associated with such litigation," said Carol N. Skornicka, senior vice president, general counsel and secretary to the board of directors. "We can now continue to fully focus all of our efforts on pursuing our long-term strategic plan and providing our customers with 'The best care in the air.'"

The judge determining the lawsuit in New York about the shareholder names hasn't reached a decision yet.

 

[likeitis]

If I understand correctly, Midwest still refuses to give Airtran a list of the stockholders so they can contact them directly and send the the correct propaganada (I believe they are still in court over this).

Actually it was explain to me that Midwest has sent all of Airtran's info to all the stockholders and Airtran has paid them for the postage, etc. Midwest is very anal about customers privacy and they feel that they should respect their stockholders privacy as well by not giving out their personal information. I don't really agree with this but this is their explanation for not just releasing the personal information. I haven't heard of any stockholder who hasn't received AirTran's info.

 

[FlyWolf]

As a pilot who only have few shares I have received the airtran paperwork asking me to tender my shares.

 

[Lear70]

As a pilot who only have few shares I have received the airtran paperwork asking me to tender my shares.

Did it come with just the AirTran letter and offer or did the Midwest management enclose stuff with it providing their stance as well?

 

[Donsa320]

Did it come with just the AirTran letter and offer or did the Midwest management enclose stuff with it providing their stance as well?

Mine came as its own packet, MEH's came a day later with the rebuttal.

The sentiment around MKE certainly does not seem to favor a merger. I know people who are so incensed that they are booking away from AirTran now, even when they used to use AAI normally, like to JAX.
Kind of like a reverse carpetbagger syndrome. It is not sitting well.

I guess we will see what we will see.

 

[Lear70]

I guess we will see what we will see.

Steven Seagal, Under Siege. Great movie.

It's still enough anti-AAI sentiment to keep my staying separate hopes alive, that's for sure...

Thanks for the info. Enjoy the game!

 

[Donsa320]

Steven Seagal, Under Siege. Great movie.

It's still enough anti-AAI sentiment to keep my staying separate hopes alive, that's for sure...

Thanks for the info. Enjoy the game!

You bet.

BTW I went through 3 mergers. North Central and Southern Airways became Republic. Then Republic and Hughs Airwest, (which nearly then went bankrupt. A really close one). And then Republic and Northwest in 1986. That was a 3 year battle in which the Arbitrator's final award tenants just ran out last year, 2006. All went date of hire, in the end, with many restrictions. The number 1 position on the combined Northwest list went to a former Airwest pilot!

Hang on for the ride.

 

[Eagle757shark]

Lear 70, I saw where you used in one of your post the airline pilots favorite phrase " IT'S A DONE DEAL". I can't tell you how many times in my airline career I have heard this phrase used. This phrase generally means in this industry the deal is not done and will not get done. I think that AirTran extending the window indicates they are a long way off from what they were looking for from the shareholders. I have a hard time believing any shareholder with a pulse has not looked at AirTran's offer by now. The extension could be an indication that AirTran is looking at increasing the offer. I've heard people say AirTran can just move into MKE on their own and crush them. I highly doubt that, the community would probable boycott AirTran. This would cause AirTran to lose millions. Not to open up old wounds, but if AirTran had just upped their offer to ATA 27 months ago, would they be in this predicament. I've heard both sides of this argument. Delta and Northwest will soon be out of Ch.11 leaner and meaner than before. When Northwest comes out of Ch.11, they will probable try to defend MKE if the merger hasn't taken place. Delta will continue to beef up Atlanta. I believe AirTran management has shown its hand. Every airline executive knows this and will be watching. Frontier or Alaska could be of interest by the end of the year. We shall see.

 

[FlyAirtran]

Just for the record, I dont think they are booking away from Airtran either. This last week I went through MKE twice and we were oversold both times. Once to ATL and once to MCO the ATL flight had 2 jumpseaters. Most of the travelling public probably doesnt care either way they are just looking for an open seat and cheap ticket.

 

[Eagle757shark]

Just for the record, I dont think they are booking away from Airtran either. This last week I went through MKE twice and we were oversold both times. Once to ATL and once to MCO the ATL flight had 2 jumpseaters. Most of the travelling public probably doesnt care either way they are just looking for an open seat and cheap ticket.

Good to see. The problem is load factors don't equate to profit. Yield does. You bring up a great point, the traveling public only cares about price. But at what price to the airline? If you sell your seats so low that you don't cover the cost to operate the flight, that ain't good. Northwest did this in Indianapolis when ATA was in Ch. 11 trying to run them out of business. Nine months later Northwest was in Ch.11. As crewmembers we tend to equate load to profit. I'd rather see a 60% load and break even, than a 100% load and lose money. When you are trying to stick it to your competition, you tend not to care about making money. It's about whose pocket is deepest. The question, can AirTran afford to do this if it comes down to this in the future?

 

[Lear70]

Lear 70, I saw where you used in one of your post the airline pilots favorite phrase " IT'S A DONE DEAL". I can't tell you how many times in my airline career I have heard this phrase used. This phrase generally means in this industry the deal is not done and will not get done. I think that AirTran extending the window indicates they are a long way off from what they were looking for from the shareholders. I have a hard time believing any shareholder with a pulse has not looked at AirTran's offer by now. The extension could be an indication that AirTran is looking at increasing the offer.

All valid points, and quite possibly all true.

I've heard people say AirTran can just move into MKE on their own and crush them. I highly doubt that, the community would probable boycott AirTran. This would cause AirTran to lose millions.

I highly doubt it as well, although for different reasons. I don't believe the community would "boycott" anyone, but I don't believe we have the resources to wage that war, nor would we want to.

It also goes against everything this company has done historically in the last 5 years. They've said it more than once, they do NOT want to go head to head with any other carrier in a fare war - no one wins those. On individual routes? Sure. As an entire front-line offensive? No way.

Not to open up old wounds, but if AirTran had just upped their offer to ATA 27 months ago, would they be in this predicament? I've heard both sides of this argument.

Maybe. Maybe not. I don't think SWA was prepared to lose that one at nearly ANY cost. Smart move on their part.

Delta and Northwest will soon be out of Ch.11 leaner and meaner than before. When Northwest comes out of Ch.11, they will probable try to defend MKE if the merger hasn't taken place.

That would be just as bad an idea as the big ramp-up of MKE flying to begin with. Don't get me wrong, I really enjoyed the 16-18 hour MKE overnights in the Raddison with the Houlihans restaurant in it and the van service down to the waterfront in nice weather (PCL), but I believe it was a REALLY stupid move and a money-loser all around for NWA.

Delta will continue to beef up Atlanta.

Actually, Delta has formally announced just the opposite, that they will scale back in ATL and focus elsewhere. Good news for everyone, actually, as going head to head with us was killing them on every route, as we COULD operate profitably at fares they couldn't possibly match.

Even after bankruptcy. Their CASM is still almost double ours after Ch. 13.

I believe AirTran management has shown its hand. Every airline executive knows this and will be watching. Frontier or Alaska could be of interest by the end of the year. We shall see.

Quite possibly, you just never know.

I could be wrong, it's happened many times before.

 

[737 Pylt]

Most of the travelling public probably doesnt care either way they are just looking for an open seat and cheap ticket.

That's exactly right!!!
There's no such thing as brand loyalty any more!!!! People want the cheapest ticket from point A to point B!

737

 

[Flydaplane]

Not sure how smart Airtran management is. I still don't know why Joe Leonard didn't go public with a big offer last year when our stock was $1.40 a share. He would have won the shareholders over for sure. Too bad he waited until the stock had rebounded and was hovering around $9.50 a share. Hey Joe, Buy low!
Of course Midwest's growth plan of 50 seaters doesn't make much sense either, then again, nobody asked me. Now with the age 60 rule changing, I think it's time to bail....

 

[FlyWolf]

Did it come with just the AirTran letter and offer or did the Midwest management enclose stuff with it providing their stance as well?

Same as Donsa320 here, no, it didn't come with any Midwest info, Midwest paperwork came a day later.

 

[Eagle757shark]

Not sure how smart Airtran management is. I still don't know why Joe Leonard didn't go public with a big offer last year when our stock was $1.40 a share. He would have won the shareholders over for sure. Too bad he waited until the stock had rebounded and was hovering around $9.50 a share. Hey Joe, Buy low!
Of course Midwest's growth plan of 50 seaters doesn't make much sense either, then again, nobody asked me. Now with the age 60 rule changing, I think it's time to bail....

At the end of 2001 when Metrojet pulled out of Baltimore, AirTran kinda went into Baltimore to fill a void, but Southwest rolled in and took over BWI. When US Airways was really down on their luck and went into Ch. 11 the first time, AirTran picked up a few gates in Philadephia and kinda said lets see what happens. Southwest rolls in and has almost 12 gates in Philadephia and becomes number 2 carrier in PHL. When ATA entered into Ch. 11 on Oct 26, 2004, AirTran had an opportunity at 14 gates and DCA and LGA slots. Southwest outbids AirTran and takes over most of those gates in MDW. Now when you look at the court filings, ATA and AirTran entered into an agreement on August 4, 2004 over two months prior to ATA filing Ch.11. Why did AirTran wait so long and allow this to go into a bidding war and lose? Jetblue has 8 to 10 gates in Boston, AirTran has 4. Jetblue, the big carrier at JFK picks up several gates and slots in LGA, AirTran has 2 gates and limited slots.
Yes AirTran has been profitable for the last 8 years. However, there have been some missed opportunities that could have taken AirTran to the next level. As much as most of us hate flying in and out of Philadephia, had AirTran picked up 8 to 12 gates that could have been huge for AirTran. Had AirTran had the assets when Metrojet pulled out of BWI and taken over before Southwest. If AirTran could have picked off those ATA assets. I believe going forward you may begin to see the frustration and why AirTran really wants MKE. You ask why AirTran didn't go public last year when the stock was $1.40, don't know. With 60 firm orders on the books, those aircraft have to go somewhere. We all know they aren't going to Atlanta. Only time will tell.

 

[FlyWolf]

Just got my 3rd airtran info in the mail today asking me to tender my shares, only one from Midwest so far

 

[Eagle757shark]

Just got my 3rd airtran info in the mail today asking me to tender my shares, only one from Midwest so far

If I may ask, what do you think and which plan do you like the best going forward?

 

[FlyWolf]

If I may ask, what do you think and which plan do you like the best going forward?

I always thought that a combined merger would form a better stronger company with a lot of job stability and career advancement, but our union said no, staying alone is better, they must know something I don't