Midwest Growth Plan?

[ultrarunner]

My only question in this whole thing is how does TPG get their money back?

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

 

[CitationLover]

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

yeah they'll do that then ask for doj approval on a DAL merger.....ok.....

 

[fam62c]

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

Anything is possible but if NWA buys Midwest from TPG and operates the company as an independent division I think they run into scope issues due to the size of the Midwest planes. I think if they buy it they have to merge it and I'm not sure they want to do that, especially now in the shadow of DAL/NWA. I think that if Midwest merges it will be post DAL/NWA merger. This will be very interesting but in the end TPG has to get their money from somewhere, they are deep in the hole with this buyout and it will keep getting worse if Midwest bleeds money that comes out of TPG's pockets. I'm not sure that if TPG knew then what it knows now they would have gotten involved with this caper. I just don't see a return on investment here.

 

[CitationLover]

Anything is possible but if NWA buys Midwest from TPG and operates the company as an independent division I think they run into scope issues due to the size of the Midwest planes. I think if they buy it they have to merge it and I'm not sure they want to do that, especially now in the shadow of DAL/NWA. I think that if Midwest merges it will be post DAL/NWA merger. This will be very interesting but in the end TPG has to get their money from somewhere, they are deep in the hole with this buyout and it will keep getting worse if Midwest bleeds money that comes out of TPG's pockets. I'm not sure that if TPG knew then what it knows now they would have gotten involved with this caper. I just don't see a return on investment here.

the people at TPG knew EXACTLY what they were getting into. these people aren't idiots. they will make their money one way or the other. they aren't pilots throwing darts at a dartboard to pick stocks.....

 

[Island Hopper]

The sale of the aircraft and the gates to other carriers will help to start the return on investment and the rest can be used to show a loss on a balance sheet. Perhaps offsetting some of TPG's other profitable investments.

 

[BobbyBiplane]

the purge has begun. Kolshak is TH's replacement and will basically run the show.

You had better hope not!

 

[ultrarunner]

I don't think Midwest will get merged at all. TPG MUST get a return on their money. And IMO, nothing will happen to MEH until AFTER the NWA/DAL merger is completed, although plans for MEH will be done concurrently.

I think MEH's asset's are relatively few:

The Skyway and Midwest Operating Certificates are likely the most value of anything else.

The 717's are leased if I recall, as are the hangars I believe.

Not sure about their HQ.

Skyway is getting shutdown the the certificated is being shopped. I don't see that Skyway has any value at all except the Certificate.

There just isn't much there that I can see.

The certificate and gates/operating authority are what will bring in the bucks.

But I would agree with CitationLover: TPG has thought WAY ahead, and has take ALL of this, and stuff not even talked about yet, into account when they bought in. They smarts in that group are beyond belief. Rest assured they will 'Make Their Number', no matter what. And I think that is what a large number of folks here don't understand.

TPG's involvement here is ONLY about money and profit. PERIOD. It's about 'making the number'.

They don't give a rats doo doo about keeping a company intact, keeping folks employed, etc...

Don't believe any of TPG's lip-service.

TPG put up 200 PLUS million of investors money. You can damn well bet they will make their number!

 

[CitationLover]

you people are all starry eyed or something....

AAI is a publicly traded company. Fornaro is ALL about money PERIOD. AMR is a publicly traded company. Arpey is ALL about money PERIOD. etc etc etc.

in fact i would bet in the course of your life YOU are ALL about money and paying your bills. why else would you work?

 

[meigwo]

Um.... the words "Midwest" and "Growth" should never be uttered in the same sentence.

The media blitz about the Skyway pilots aint gonna work. No one in the town cares about these 'small' airplanes. Just give them a cookie and they will be happy.

 

[Island Hopper]

TPG ......... Gordon Gecko
Midwest Airlines......Blue Star Airlines

It maybe the beer, But I think I am seeing a familiar story here.