Midwest Says U.S. DoJ closes investigation

[CitationLover]

The next act in this play will be the exit of TPG. I'm curious to see how they get their 200+M +profit out of this deal. My bet is that NWA lets them suck the cash out of MEH until it's gone and then pays them the rest of what they are owed in a year or two. I think that anything that doesn't directly generate revenue will be jettisoned for cash and additional cost savings/productivity will be squeezed out to try to limit the losses. MEH is going to get bled dry then NWA will take what they want and liquidate the rest. NWA will use their equipment on the few routes that need bigger planes and when the Skywest deal expires in 4 years a NWA wholly-owned will move in with 70 seaters and hold down the rest. MKE will basicaly be a NWA RJ hub in a few years. Look at what AMR did with STL after they bought TWA........that's the future of MKE.

Goto business school, please!!!

TWA/AA is NOT a valid comparison at all. TWA had a lot of airplanes and AA still maintains a large domicile in STL and even though they shrunk the original flying is actually going back and adding flying now. They stupidly tried to play down their TWA 757 lease costs and got burned badly when the leasing company said, ok Delta will pay our rates we're giving them to Delta. We are talking about 400 pilots and FA's at MEH which are about equal to NWA reserve requirements (and they are hiring like mad).

It may take awhile but I'll be surprised if it doesn't go down pretty much like this in the end. NWA was trying to put MEH out of business and take the MKE market in the past. MEH proved to be a tough little nut to crack and NWA ran into bigger problems with Chapter 11 before they could win the battle. This time they will win the war without having to even fire a shot.

they've already fired a shot and bought 47% of the company. you don't buy an asset, strip it, then spend MORE money to train your pilots, when you could simply integrate the small amount of MEH pilots.

As long as I'm being Nostradamus here I also predict that TH retires in the next 6 months and leaves as a "hero" because he fought off AAI and got the shareholders the best deal. He won't stay around to preside over the dismantling of his baby.

if NWA doesn't buy us outright in 6 mos., TH will "retire" within a year (that's what the public announcement will say), but he'll be fired by TPG and hopefully a REAL management team with vision (a la Bethune) is brought in.

 

[hyperboy]

Whoops stock is at 16.97 and counting not to far from the 17 per a share they bought it for huh?! So many of you act like you know everything and sad to say know about nothing!

 

[Propsync]

they've already fired a shot and bought 47% of the company. you don't buy an asset, strip it, then spend MORE money to train your pilots, when you could simply integrate the small amount of MEH pilots.

I don't know. I think it would be cheaper to put you out of work. NW's orders are firm, expense for training is accounted for. Pilot training, while expensive, is not going to be the reason ME is kept as is. You can always move 90 seat RJ's to replace the 717. NW can move off losing routes and put re-utilized aircraft in MKE. Increase revenue without having to add more aircraft. Instead of shrinking to profitability, they can redeploy assets to MKE. Why keep another fleet?

Wasn't PanAm, Eastern, and People Express done this way? I need to re-read Hard Landing. I remember Lorenzo did a real number on those guys, and I wonder if much the same will happen again.

 

[Propsync]

Whoops stock is at 16.97 and counting not to far from the 17 per a share they bought it for huh?! So many of you act like you know everything and sad to say know about nothing!

Yeah, I'm so suprised it's trading at so close to what the deal was for. And to think, I was going to buy starting at 17.25. Wonder if it will get that high...............

 

[Gearthrower]

Well, I wish all the MIDEX guys/gals the best of luck. I would not count on TPG to be the savior. My company was bought by a company owned by TPG about two years ago and they are brutal. They have stripped the little infrustructure we had and turned us into a virtual airline. Everything has been farmed out or turned over to a computer program to manage. We make money but it has become a truely differcult company to work at. I do hope you have a different experience than us, but get ready for almost anything these guys are straight out of Lorenzo's training camp. And to boot NW is involved Satan and Baby Satan.

Go luck!

 

[CitationLover]

I don't know. I think it would be cheaper to put you out of work. NW's orders are firm, expense for training is accounted for. Pilot training, while expensive, is not going to be the reason ME is kept as is. You can always move 90 seat RJ's to replace the 717. NW can move off losing routes and put re-utilized aircraft in MKE. Increase revenue without having to add more aircraft. Instead of shrinking to profitability, they can redeploy assets to MKE. Why keep another fleet?

Wasn't PanAm, Eastern, and People Express done this way? I need to re-read Hard Landing. I remember Lorenzo did a real number on those guys, and I wonder if much the same will happen again.

Again the big fish is NWA/Delta, but according to you NWA will spit in the DOJ's face and tell the government, "f@#$ you" and fire everyone. Then come back and say, "Pretty please let us merge with Delta!"

AA/TWA has changed the game from the past.

 

[Propsync]

Again the big fish is NWA/Delta, but according to you NWA will spit in the DOJ's face and tell the government, "f@#$ you" and fire everyone. Then come back and say, "Pretty please let us merge with Delta!"

AA/TWA has changed the game from the past.

No, they'll merge with Delta first, then fire you.

 

[CitationLover]

No, they'll merge with Delta first, then fire you.

Man you are on some REALLY good drugs! Whose your boss so I can call and have them threaten to fire you since you seem to get off saying that?

The deal with us closes TODAY (the DOJ treated this as a NWA buyout). I am sure the Delta merger will happen before Midnight tonight though.