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.

 

[Sy-bill]

AAAAAH, the arrogance. Gotta love it.

About what? I have no dog in this fight.

Its called being real. Try it some time instead of wishful thinking.

 

[Midge]

About what? I have no dog in this fight.

Its called being real. Try it some time instead of wishful thinking.

I have no dog in this fight either.

It's called being legal. Try it sometime instead of follish talking.

 

[Sy-bill]

It's called being legal.

Please explain.

 

[Kharma Police]

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.

I'm going to take a guess given your views on, "fair mergers" the you work for AA? If so, thank you!

 

[Midge]

Please explain.

Sy-bill:
My bad. I had to re read the thread. There are so many pissing contests about the SLI that I thought this was just another food fight.
You're probably right, nothing stopping SWA management from pulling an Ichan on AT. Let's hope not for the sake of the AT employees.

 

[texman]

Here we go.

 

[texman]

All I know we will surpass our 15% on ROIC once the deal is done. Grow this MOFO!

 

[redflyer65]

Maybe that's the reason we are hearing about over 800 newhires for 2011. Interesting times for sure..

 

[Ty Webb]

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.

OK, Chief.. . . . Let me spell it out for you. AirTran pilots also have a contract . . . . and that contract is binding on anyone who merges with us, or buys 51%.

Number two- Smarter pilots than yourself already understand that the faster AirTran pilots are on the SWA contract, the better it will be for both parties. Otherwise, where do you think the growth will be- the cheaper operator who has options on 25 more 717's available for pennies on the dollar, or the domestic-only airline with the higher CASM that requires purchases of additional 737 to expand?

Hmmmm . . . . Geee . . . . . I wonder. :laugh:

 

[Ty Webb]

Maybe that's the reason we are hearing about over 800 newhires for 2011. Interesting times for sure..

Mmmmm . . . . yeah. Wow, you guys have even more ridiculous rumors on the line than we ever did. :laugh: