Will SWA and AT truly merge?

[malibuVride]

I found this on AIRLINE BIZ blog. Its pretty interesting.

• The merging companies are AirTran and Guadalupe Holdings Corp., a Nevada corporation and wholly owned subsidiary of Southwest Airlines. Guadalupe will be merged into AirTran, which will then become a wholly owned subsidiary of Southwest Airlines.

• After the merger closes, AirTran will be merged into a new limited liability company set up as a Texas company, LLC Sub, which will become a wholly owned subsidiary of Southwest.

I think Southwest will control Airtran as a wholly owned subsidiary and will mold them into a Southwest operational model. If the model becomes more profitable, over time, Airtran's 717s will be refleeted with the 737-800 to simplify operations and gain additional cost efficiencies. If the model is profitable, and refleeting is completed, then and only then would the Airtran operation be merged into Southwest.

I'm curious what impact this could have on SLI, or if it's even required for that matter.

 

[scoreboardII]

They can do whatever they want but they only have 24 months to use Guadalupe Holdings without the unions approval or it violates the contract.

 

[GuppyWN]

My vote to extend seperate ops could be bought - for a price.

Gup

 

[XR650R]

Good question. Obviously I'm not a M&A attorney but my guess is that the above would be completely transparent to the employees of both companies. At SWA, we haven't been given any indication other than the company's desire to move this transaction along and have the SWAPA-SWA transition agreement in place in time for the corporate closing planned for March 2011. From a purely corporate point of view, we have been told that the company would like to see the SLI in place ASAP, although they realize and understand that it could take some time.

 

[Max Powers]

My vote to extend seperate ops could be bought - for a price.

Gup

Of course it could be. Why? Because you lack experience in the airline world. And because your one of the biggest tools on this web board. You're the exception to the rule at southwest.

 

[seerickyfly]

Could be a little bargaining chip hey Gup??? You know a side letter could remove that 24 month requirement..... just saying if somebody doesnt play nice...

 

[CaptWidgeon]

Of course it could be. Why? Because you lack experience in the airline world. And because your one of the biggest tools on this web board. You're the exception to the rule at southwest.

this doesn't even make sense. switch to decaf bro, you're family will appreciate it.

 

[Sy-bill]

Someone finally gets that this is a purchase of assets. Not a merging of companies. SWA has the right to decide what to do with these assets. And the culture at SWA has been and always will be a major concern for leadership.

Apparently the SWA training department has the ability to train 700 new pilots a year. You do the math.

Just being real about this transaction. And so should the pilots of both Airtran and Southwest.

 

[ACL65PILOT]

Guppy be careful with that. As you know that would be a cutout in your Scope. One there is a cutout, there is room for more.......

 

[Midge]

Someone finally gets that this is a purchase of assets. Not a merging of companies. SWA has the right to decide what to do with these assets. And the culture at SWA has been and always will be a major concern for leadership.

Apparently the SWA training department has the ability to train 700 new pilots a year. You do the math.

Just being real about this transaction. And so should the pilots of both Airtran and Southwest.

AAAAAH, the arrogance. Gotta love it.