More Competition in Milwaukee for Midwest

[SkiFishFly]

I for one hope the MEH pilots find themselves at NWA or the combined NWA/Delta.
I wish that AAI had been able to buy you guys but I think AAI will do ok without you. I think our management made it very clear that MKE was part of our growth plan and with recent announcements , everyone can see that we are continuing to implement these plans.
Hopefully you MEH guys will be OK.

 

[Propsync]

So simply buy MEH and let it whittle or use its assets (airplanes and gates) and employees (they were planning on hiring 1/2 the amount of Midwest's pilots this year, their DTW FA reserve list is the number of our FA's)? MEH is a small speed bump in the grand scheme for NWA and integrating them. No doubt Compass is going to be used, but so will the MEH 717's and people who operate them already qualified.

But we shall see, if we're stand alone TPG better buy new airplanes......

Yes. But they'll only take the gates and slots. Nothing else. No integration. Everybody can reapply and start over. I think NW was the labor-friendly airline that broke the mechanics union not long ago. To think you stand a shot is laughable.

Someone else said TPG has never done anything like people are saying before. Was TPG involved in any other deals that included buyout options? Mergers? Were not the other deals just equity stakes?

 

[IdRtherBsailing]

Yes. But they'll only take the gates and slots. Nothing else. No integration. Everybody can reapply and start over. I think NW was the labor-friendly airline that broke the mechanics union not long ago. To think you stand a shot is laughable.

Someone else said TPG has never done anything like people are saying before. Was TPG involved in any other deals that included buyout options? Mergers? Were not the other deals just equity stakes?

This makes perfect sense.....in the bizarro world of Superman.

 

[Propsync]

This makes perfect sense.....in the bizarro world of Superman.

Even CL can do better than that. If you think otherwise on this topic, go for it, we'd love to hear it. Making posts that make myself wonder if you're mentally fit for a medical really doesn't do much here. So how's it going to go IRBS?

 

[CitationLover]

Yes. But they'll only take the gates and slots. Nothing else. No integration. Everybody can reapply and start over. I think NW was the labor-friendly airline that broke the mechanics union not long ago. To think you stand a shot is laughable.

So 450 million for leased gates for our small op and 20 or so slots at LGA and DCA? come on. I realize you hate TH but please think.

NWA now has 717's and capable crews to train with a simple Indoc course to be at NWA. Cost very little additional money than what they already have.

No instead they will fire everyone, rehire people, pull Dc9 pilots off revenue flights and train them for 2 months for 717 training, meanwhile having to hire pilots to replace the Dc9 guys transitioning, and still having to hire the 200+ pilots they're needing in 2008. it makes no sense whatsoever.

The pilot shortage is working to our benefit here. You should be FOR more higher paying jobs at NWA rather than wasting energy saying it isn't going to happen, because of your beef with Tim.

 

[Propsync]

So 450 million for leased gates for our small op and 20 or so slots at LGA and DCA? come on. I realize you hate TH but please think.

Yup. If you can't see 450 million as being cheaper than going head to head with AT, you deserve the worst. TH is an idiot, but not understanding where you are in the grand scheme of things is even worse. If you really think NW will keep 25 717's, you really need help.

The pilot shortage is helping NW. They are replacing 9's with 900's and 175's. They place the burden on their feeders. Pinchnickel just paid NW a couple for lack of service. Keeping a whole other company is just a drain for NW. Two of everything, no economy of scale. You'll be done, just like Skyway.

 

[CitationLover]

You'll be done, just like Skyway.

I'm putting a gun to my head now as propsync says the sky is falling. woe is me.

is TH the "beast" in the book of revelation?

 

[CitationLover]

whoops i missed, sorry can't do that right either propsync.

 

[Eagle757shark]

NWA now has 717's and capable crews to train with a simple Indoc course to be at NWA. Cost very little additional money than what they already have.

Northwest doesn't have 717s. Northwest put in 47% of the money to allow the TPG to purchase Midwest and then take it Private. Northwest doesn't own Midwest, so Northwest doesn't have 717s. Citation, you are HOPING Northwest and Delta will merge so you will get your shot at the big boys because you can't get there any other way. I personally don't hate TH. I don't know the man and don't have a reason to hate him. I don't dislike or have bad feelings toward Midwest either. I posted the articles that were written regarding this transaction and that was all I did because it was news and many pilots at AirTran and Midwest were interested in the information. This transaction could have affected us all. AirTran is still growing and tweeking their business and so is Midwest. Good and let it be that.

Citation your constant jumping around on this board and attacking people because they have an opinion is getting old. If you want to go work for Delta or Northwest or AirTran, they are all hiring. I'm sure you are more than welcome to apply. Now that the deal is done, that chapter for AirTran and Midwest are done, for now. Now they will spend the rest of 2008 competeing head to head in MKE. What AirTran is doing in MKE, is similar to what Southwest is doing in Denver. Citation think of it like this: Southwest and AirTran are like a Great White SHARK and a Mako SHARK respectively. One is bigger than the other but both are mean preditors. They see wounded bloody seals swimming in the water. Hmmm....says the sharks, theres my SUMMER dinner. Citation, you better hope consolidation kicks off soon, because that may be the only bait that distracts these SHARKS! Best of luck to you......CITATION!

 

[FlyWolf]

Press ReleaseSource: Midwest Air Group, Inc.

Acquisition of Midwest Air Group By TPG Capital Closes Today
Thursday January 31, 4:05 pm ET Partnership Brings TPG's Considerable Aviation Experience to Midwest Airlines and Launches Enhanced Commitment to the Environment

MILWAUKEE, Jan. 31 /PRNewswire-FirstCall/ -- Today's closing (at 5 p.m. Central time) of the sale of Midwest Air Group, Inc., parent company of Midwest Airlines, to Midwest Air Partners, LLC, an affiliate of TPG Capital, is the start of a new era for "The best care in the air," according to Timothy E. Hoeksema, chairman and chief executive officer since the airline took to the skies in 1984.

"We're looking forward to capitalizing on TPG's considerable experience in the airline industry to help us continue to meet -- and exceed -- the expectations of the traveling public," said Hoeksema. TPG's 15-year record of investing in the aviation industry includes Continental Airlines, America West, Ryanair, Hotwire.com, Gate Gourmet, Sabre and other well-respected brands.

Hoeksema said Midwest would benefit from TPG's strength and expertise as the airline executes its comprehensive strategic plan. In 2008, that includes the implementation of seating choice throughout the airline's mainline fleet; growth and enhancement of its existing codeshare agreement with Northwest Airlines; and the introduction of a wide-ranging environmental initiative that the airline has named "The best care for the air."(sm) (Editor's Note: A logo for the new initiative is available by e-mailing [email protected].)

The environmental initiative will build on the TPG companies' long-standing environmental stewardship and Midwest's track record of environmentally conscious decision-making. Over the last five years, Midwest has reduced its carbon emissions rate more than 20% through fuel-conservation efforts that include:

-- Replacement of its DC-9 aircraft fleet with new, fuel-efficient Boeing 717 aircraft. -- Full-scale use of electric ground power and preconditioned air units at its Milwaukee hub. -- Increased implementation of single-engine taxiing, along with improved aircraft flight control surface rigging and trim, reduced aircraft weight and minimized aircraft idle time. -- Increased use of aircraft pushback tractors and electric-powered ground support vehicles.
As part of the initiative, Midwest will partner with Boulder, Colo.-based Sustainable Travel International to offer travelers environmentally responsible travel planning choices -- including a carbon-offset program. Additional details will be announced as the program is rolled out during 2008.

"We are proud to support this venture given Midwest's commitment to energy efficiency and the TPG companies' long-standing environmental stewardship," explained Brian T. Mullis, president of Sustainable Travel International. "We are looking forward to helping Midwest and their customers to protect the environment by enhancing the company's sustainability initiatives."

In terms of the transaction, Hoeksema pledged that the airline's commitment to providing outstanding customer service would also continue under the new ownership structure. The acquisition by TPG will preserve Midwest as Milwaukee's hometown airline and the popular Midwest brand -- known for its comfortable seating, high level of customer service and baked-onboard chocolate chip cookies.
"We're excited to partner with TPG," Hoeksema said.

"The management of TPG genuinely shares our dedication to quality, and respects our brand and what we've achieved. They've expressed confidence in our business plans, leadership and employees."
Richard P. Schifter, partner, TPG Capital, added, "We at TPG are very enthusiastic about the future of Midwest. We see significant value in Midwest's rich legacy as a leading provider of customer-oriented air service -- and that's why we are investing in Midwest.

Our goal is to work with Midwest's excellent management team and loyal workforce to look for opportunities to grow and enhance service for customers in the greater Milwaukee and Kansas City metropolitan areas and throughout the airline's network."

Additionally, Midwest will work with Northwest Airlines -- a passive, minority investor in the new ownership structure -- to enhance its existing codeshare partnership and to achieve cost synergies in areas such as aviation insurance and fuel purchases, especially important in light of the expected high cost of fuel in 2008.

"As we enter this new era for our airline, we'd like to take the opportunity to express our sincere thanks to our customers, the communities in which we do business, employees and former shareholders for their tremendous support," said Hoeksema.

The airline will celebrate "A Dozen Thanks Day" on Tuesday, February 12. Midwest employees will hand out the airline's popular chocolate chip cookies at Milwaukee's General Mitchell International Airport and Kansas City International Airport. Members of the airline's Midwest Miles program who fly that day will receive 1,200 bonus miles. And customers who receive the airline's weekly fare special e-mails will receive a code that entitles them to a 12% discount on tickets purchased that day. (Visit http://www.midwestairlines.com to join the e-mail list.)

Trading of Midwest Air Group stock on the American Stock Exchange concluded as of the close of trading today. Shareholders will be notified of the process to liquidate their holdings, which will vary depending on how the stock is held. Distribution of payouts will occur as soon as practicable.
About Sustainable Travel International
Sustainable Travel International (http://www.sustainabletravelinternational.org) is a 501(c)(3) non-profit organization whose mission is to promote sustainable development and responsible travel by providing programs that enable consumers, businesses and travel-related organizations to contribute to the environmental, socio-cultural and economic values of the places they visit, and the planet at large.
About TPG Capital
TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992, with more than $35 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Minneapolis, Fort Worth, Melbourne, Menlo Park, Moscow, Mumbai, Shanghai, Singapore and Tokyo. TPG Capital has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG Capital's investments span a variety of industries including travel, technology, retail/consumer, media and communications, industrials, financial services and healthcare. Please visit http://www.tpg.com.
About Midwest Airlines
Midwest Airlines features jet service throughout the United States, including Milwaukee's most daily nonstop flights and best schedule to major destinations. Catering to business travelers and discerning leisure travelers, the airline earned its reputation as "The best care in the air" by providing passengers with impeccable service and onboard amenities at competitive fares. More information is available at http://www.midwestairlines.com.



Source: Midwest Air Group, Inc.