SWA buys ATA

[njcapt]

I don't! It's bad enough no one outside HI and the military knows who we are.

Don't feel bad, Hal. Last Saturday I was sitting in the SFO Sheraton Crew Room before my show (I was in full uniform). There was a UAL FO (nice lady, obviously a recent recall) there who asked me who I flew for. I told her 'AirTran' and she responded 'you mean ATA'?

She had never heard of AirTran.

 

[mnboyev]

Did she have mousy black hair with an oily sheen that drooped out of her lid.. ? OH... and was wearing Doc Martins.....All in good fun.. of course.

 

[HalinTexas]

Don't feel bad, Hal. Last Saturday I was sitting in the SFO Sheraton Crew Room before my show (I was in full uniform). There was a UAL FO (nice lady, obviously a recent recall) there who asked me who I flew for. I told her 'AirTran' and she responded 'you mean ATA'?

She had never heard of AirTran.

Oh, man.

 

[Whine Lover]

NOT A MERGER:


Types of acquisition

An acquisition can take the form of a purchase of the stock or other equity interests of the target entity, or the acquisition of all or a substantial amount of its assets.

Asset purchases - in an asset purchase the buyer buys the assets of the target company from the target company. In simplest form this leaves the target company as an empty shell, and the cash it receives from the acquisition is then paid back to its shareholders by dividend or through liquidation. However, one of the advantages of an asset purchase for the buyer is that it can "cherry-pick" the assets that it wants and leave the assets - and liabilities - that it does not. This leaves the target in a different position after the purchase, but liquidation is nevertheless usually the end result.

--------------------------------------------------------------------------

"Why buy the cow when the milk is free?" - You want the beef too.

"... IF this were to occur, what would SWA do about the FEFOs and FECAs??" - Nothing. They are current and qualified.

"What about the guys who don't have a 737 type rating??" - Give em' 6 months to buy one. Just like new hires. OR...SEE BELOW.

"What about the guys who don't have the 1500 (or whatever it is) hours of turbine PIC??" - SWA makes the minimums. SWA can change the minimums.

"What about the guys on the DC-10, the L-10, and the 757??" - Not a merger. An asset acquisition. 737's sched. service codeshare only will be acquired.

"What about all the furloughees, both voluntary and involuntary??" -Not current. So sorry. Buh Bye. NOT A MERGER. An Asset Acquisition. 737 current and qualified only.

"Speaking of the voluntary furloughees, what about those who are very senior, and could come back right away??"- So sorry. See above. Bad roll of the dice for some folks.

"..PHX and LAS to HI ain't gonna happen on any B737" - 737-900/900 ER


Next....



YKW

 

[HalinTexas]

NOT A MERGER:


Types of acquisition

An acquisition can take the form of a purchase of the stock or other equity interests of the target entity, or the acquisition of all or a substantial amount of its assets.

Asset purchases - in an asset purchase the buyer buys the assets of the target company from the target company. In simplest form this leaves the target company as an empty shell, and the cash it receives from the acquisition is then paid back to its shareholders by dividend or through liquidation. However, one of the advantages of an asset purchase for the buyer is that it can "cherry-pick" the assets that it wants and leave the assets - and liabilities - that it does not. This leaves the target in a different position after the purchase, but liquidation is nevertheless usually the end result.

--------------------------------------------------------------------------

"Why buy the cow when the milk is free?" - You want the beef too.

"... IF this were to occur, what would SWA do about the FEFOs and FECAs??" - Nothing. They are current and qualified.

"What about the guys who don't have a 737 type rating??" - Give em' 6 months to buy one. Just like new hires. OR...SEE BELOW.

"What about the guys who don't have the 1500 (or whatever it is) hours of turbine PIC??" - SWA makes the minimums. SWA can change the minimums.

"What about the guys on the DC-10, the L-10, and the 757??" - Not a merger. An asset acquisition. 737's sched. service codeshare only will be acquired.

"What about all the furloughees, both voluntary and involuntary??" -Not current. So sorry. Buh Bye. NOT A MERGER. An Asset Acquisition. 737 current and qualified only.

"Speaking of the voluntary furloughees, what about those who are very senior, and could come back right away??"- So sorry. See above. Bad roll of the dice for some folks.

"..PHX and LAS to HI ain't gonna happen on any B737" - 737-900/900 ER


Next....

You don't work for SWA do you? Why change the rules for a couple of hundered pilots, while all the rest played by the rules? Not interested in employee harmony, are you?

I'll say again, no 737 has the performance to get out of LAS or PHX to HI. You'd have to go with many empty seats. the 900 has the same engine as an -800, 27k. I'd put my money on the 787 over the -900 any day.

ATA is putting B757's back on the LAX to HNL flights. Largely due to it's cargo carrying capacity. This is the real bread and butter. Our -800's with 158 full seats (2 class) can barely carry 2000 lbs. of cargo. Our B757's are 185 pax (2 class) and can carry 8-10000 lbs. of cargo, and they'll out perform any B737, any day.

As far as the asset aquisition you mentioned: can't disagree much there. My guess is that if it's going to happen it will be something like that. However, PHX and LAS to HI will have to be dealt with in some manner.

 

[Whine Lover]

"Expect this to be announced soon."


Well?

We're waiting...


YKW

 

[BVT94]

You don't work for SWA do you? Why change the rules for a couple of hundered pilots, while all the rest played by the rules? Not interested in employee harmony, are you?

I'll say again, no 737 has the performance to get out of LAS or PHX to HI. You'd have to go with many empty seats. the 900 has the same engine as an -800, 27k. I'd put my money on the 787 over the -900 any day.

ATA is putting B757's back on the LAX to HNL flights. Largely due to it's cargo carrying capacity. This is the real bread and butter. Our -800's with 158 full seats (2 class) can barely carry 2000 lbs. of cargo. Our B757's are 185 pax (2 class) and can carry 8-10000 lbs. of cargo, and they'll out perform any B737, any day.

As far as the asset aquisition you mentioned: can't disagree much there. My guess is that if it's going to happen it will be something like that. However, PHX and LAS to HI will have to be dealt with in some manner.

We've got a lot of great Morris pilots that didn't have the 1000 hrs turbine PIC time when we bought them. The last thing the GO is going to be concerned about is the resumes of the ATA guys. I think everyone is getting spun up about nothing here. Gary Kelly has said numerous times that the only reason we did the ATA deal was for the MDW gates. The codeshare was simply a tool to get what we wanted, the MDW operation. The codeshare has been a nice revenue maker for everyone, and most likely it will stay like that.

 

[Whine Lover]

Hal,

From Boeing:

"737-900ER - The 737-900ER is the newest addition to the Boeing 737 line and was introduced to meet the range and passenger capacity of the discontinued 757-200."

and:

" Boeing decided against further investment in the 757 family and focused efforts on the 737 Next Generation series (specifically the 737-900ER which Boeing believes will be a suitable 757-200 replacement for most passenger applications). "



YKW

 

[iflyhigh]

Information like SWA buying ATA could not be released to the employees of the company or anybody else, due to SEC rules. This affects stock price and is considered inside information. I highly doubt some VP is going to give this kind of information out with the possibility of getting in trouble later.

 

[HalinTexas]

Hal,

From Boeing:

"737-900ER - The 737-900ER is the newest addition to the Boeing 737 line and was introduced to meet the range and passenger capacity of the discontinued 757-200."



YKW

Of course they're going to say that, they're selling airplanes!

Another example:

Summer time MDW going to the west coast. On the B757 with all coach seating (208 I think) normal flaps are 20 degrees max power. Not too much of a problem. I didn't fly that airplane that long and it's been almost 5 years. But I never remember bumping passengers on these types of flights. The B737-800 with 27K engines (same as on the -900), all coach 175 pax limit. The B737 could never take a full load and would use flaps 25, max blast and occasionally bleeds off to get off the runway on an 85 degree day. We were lucky to take 165 pax under these identical circumstances. It was still better than the Airbus.