What will AirTran's response be?

[FlyWolf]

gt1900, I am always NOT a 100% correct

Off course Northwest can outbid Airtran and that we are a public company and I know exactly what you'r saying, but I was trying to make a point that even though we are a publicly held company our BoD don't want to sell, and its shown by not sitting down with airTran to negotiate.

There is a very good reason that Airtran keep extending the offer and not dropping the offer all together (and keep the Midex stock inflated) its exactly for what you are saying, if AAI drop the offer and it goes down to $9-10 area I bet they will take it private, they just don't want to do it at $15 and Airtran doesn't want to drop the offer and go away for now, otherwise would have went private.

From what I heard, one of the BoD have enough $$$ to buy all of Midwest stock back, forget about the rest of the members.

Also gt. do you really think that the shareholders list will make that much difference? investors are not idiots, they have been following the news very closely.

 

[FlyWolf]

I think it could be interesting going down the stretch....I don't think NWA is interested in Midwest, but I do think they'd be interested in making a bid for Midwest just to try and get it away from AirTran or drive the price up.

Flywolf, I understand what you are saying. I know Midwest isn't for sale. However, I wouldn't be surprised if NWA coming out of ch.11, made a competitive bid for Midwest just to block AirTran or drive up the price.

It's funny, but history has a way of repeating itself. Back in 2004, Southwest came out of no where to make a competitive bid for ATA trumping AirTran in their quest for Midway gates. AirTran could have raised their bid, but chose not to. Could the same scenario happen again, but this time in MKE? The next 30 days will be interesting.
Now off to some Saturday fun!

I see what you'r saying Eagle, I also wouldn't be surprised to see a NWA bid, very interesting time ahead indeed. Enjoy your Saturday night fun

Cheers

 

[CitationLover]

well MEH's market cap is holding right at the offer ~$385 million. anyone see this nut Eden whose suing MEH now?

http://www.jsonline.com/story/index.aspx?id=572342
http://finance.google.com/group/google.finance.657944/browse_thread/thread/27f05f99ce2c9b2e

 

[FlyWolf]

What an idiot

 

[Fly4hire]

If AirTran is successful in their bid for Midwest, they could establish a major hub dead smack in the middle of two of Northwest's major hubs. Again, could Northwest be gearing up to make a competitive bid for Midwest to block AirTran?

NW has always been brutal about protecting their turf. Remember they were the spoiler for a CAL/DAL merger a few years back. They still hold the golden share for CAL, and now have an anti-merger poison pill in their stock offering, while DAL gave up their poison pill. NW management may be ruthless with their employees, but they are even more so with competitors and vendors.

Not sure where this is going, but I guarantee it's not fluff. If NW can spoil the MEH deal it protects it's turf AND puts a big crimp into AT's expansion plans. What will AT do with all those acft on order if they don't have a place to put them?

This will get really interesting in the next month. While all the talk has been of big mergers, it could in fact be with the consolidation of various smaller LCC into legacy carriers for incremental expansion vs. the mega-merger...

 

[Eagle757shark]

NW has always been brutal about protecting their turf. Remember they were the spoiler for a CAL/DAL merger a few years back. They still hold the golden share for CAL, and now have an anti-merger poison pill in their stock offering, while DAL gave up their poison pill. NW management may be ruthless with their employees, but they are even more so with competitors and vendors.

Not sure where this is going, but I guarantee it's not fluff. If NW can spoil the MEH deal it protects it's turf AND puts a big crimp into AT's expansion plans. What will AT do with all those acft on order if they don't have a place to put them?

This will get really interesting in the next month. While all the talk has been of big mergers, it could in fact be with the consolidation of various smaller LCC into legacy carriers for incremental expansion vs. the mega-merger...

Very well put!

 

[c9skytrain]

If airtran gets yx airplanes and has more on order, where are the furloughs, sounds like propoganda too me sen. mccarthy

Can we get a cogent translation of the above setence please, Mr. Moustache?

 

[gt1900]

Ummm... AAI will probably put them in one of the 15 gates IND has offered them... AAI will have no problem placing thier 737's in markets.. Thats why they are talking with Boeing for more 737's....

 

[Fly4hire]

Ummm... AAI will probably put them in one of the 15 gates IND has offered them... AAI will have no problem placing thier 737's in markets.. Thats why they are talking with Boeing for more 737's....

And NWA is the single largest carrier out of IND right now. I don't think the plan is to roll over and play dead for AAI. I heard they are getting a major gate presence at the new terminal as well and were going to fly international out of there.

 

[gt1900]

Either way... Major hubs for NWA at MSP, DTW, and either MKE or IND do not make good business sense... They can't make another hub at MKE and IND... NWA is gonna have to give somewhere, either way, AAI stands to do very well in MKE or IND.... You will not see NWA with major hubs at MSP, MKE, IND and DTW.... You could however see AAI with an ATL hub and a MKE or IND hub..... NWA will lose this battle....

 

[Fly4hire]

will not see NWA with major hubs at MSP, MKE, IND and DTW.... You could however see AAI with an ATL hub and a MKE or IND hub..... NWA will lose this battle....

I don't think it's NWA's strategy to have a hub at all of the aforementioned. All they have to do is to have enough presence to keep AAI from having them.......

 

[gt1900]

Common..... your telling me that NWA is gonna have enough of a presence at MKE and IND to keep AAI from having a major hub at either?? There is no way in hell NWA can keep AAI from having a major hub at MKE or IND... NWA may be able to protect 1, but not both..... You can't honestly believe that NWA is gonna keep AAI out of MKE and IND do you?? ........... Trust me "enough of a presence" aint gonna work to keep AAI out of MKE or IND.. The only way NWA is gonna keep AAI out of both is if NWA gets all the gates at both airports and keeps AAI out that way.. This aint AA vs. AAI in DFW.. That was a war that AAI couldn't win.. However, AAI could very easily hand NWA their @sses at MKE and IND... NWA doesn't have the pricing power or the presence at either to keep AAI out....

 

[SkiFishFly]

I don't think it's NWA's strategy to have a hub at all of the aforementioned. All they have to do is to have enough presence to keep AAI from having them.......

No. NWA needs to focus on making a profit. Chasing AAI will not work for them.