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Choke on it, AirTran!

Discussion in 'Anything goes' started by Gutter, Dec 13, 2006.

  1. Gutter

    Gutter Well-Known Member

    AirTran looking to buy out Midwest Airlines. Midwest is having none of it so far.

    http://www.jsonline.com/story/index.aspx?id=541176
     
  2. DocTalk

    DocTalk Active Member

    Re: Stay away, AirTran

    We lost the midwest feeder service here last year...too sad. What are the odds that after a takeover, the fresh baked cookies and the 2-2 leather seats will be gone.
     
  3. Gutter

    Gutter Well-Known Member

    Re: Stay away, AirTran

    That's what I'm afraid will happen.
     
  4. dixiehack

    dixiehack Well-Known Member

  5. OTD

    OTD Active Member

    Re: Stay away, AirTran

    And United is making a run at Continental.

    Let's see: United: Crappy customer service, even BEFORE bankruptcy. Continental: The only airline left with good service, meals on most flights and extremely helpful flight attendants.

    I think we know which way this will go.
     
  6. Gutter

    Gutter Well-Known Member

    Re: Stay away, AirTran

    Let's hope the Midwest board stands behind its word:

    Mr. Joseph B. Leonard
    Chairman and Chief Executive Officer
    AirTran Holdings, Inc.
    9955 AirTran Boulevard
    Orlando, FL 32827

    Dear Joe:

    Our Board of Directors met today and had an extensive discussion of your
    expression of interest in a transaction with our Company. As you know, we
    have taken your letter very seriously, and since October 20, 2006 the
    Board and the Board Affairs and Governance Committee have spent
    considerable time and effort in a process with their advisors to
    understand and evaluate your expression of interest.

    The Board completed this process today. While the Board has a great deal
    of respect for AirTran and for your leadership, it has concluded that it
    would not be in the best interests of the Company, our shareholders and
    other stakeholders, including customers, employees and the communities we
    serve, to pursue a transaction with AirTran under the current
    circumstances. The Board feels that the Company's strategic plan and
    remaining independent hold the best promise for continued growth and
    increased shareholder value going forward.


    Thank you very much for your interest in our Company and your efforts in
    submitting your letter.

    Best regards for a good holiday season.

    Very truly yours,
    Timothy E. Hoeksema
    Chairman, CEO and President
    Midwest Airlines
     
  7. 2muchcoffeeman

    2muchcoffeeman Active Member

    Re: Stay away, AirTran

    Only? Never had any bad experiences on US Airways --- great service, good meals and very good flight attendants who are usually easy on the eyes. Now, Continental, or as I call it, The Airline Where Everybody Is Premenstrual And Pissed Off Including The Men ... bleah.
     
  8. Columbo

    Columbo Active Member

    Re: Stay away, AirTran

    JetBlue.... or go screw.
     
  9. Norman Stansfield

    Norman Stansfield Active Member

    Re: Stay away, AirTran

    I'll be PISSED if this winds up going through.
     
  10. Re: Stay away, AirTran

    Good for Midwest! (MX)

    I am not in the airline industry but I am a huge fan of airplanes (OK, a nerd) and follow the industry closely. As a matter of fact, I am listening to LAX approach ATC in the background right now from liveatc.net.

    Anyway, I think this was a lowball bid from AirTran. Airtran does not necessarily want or value all of MX. What Airtran wants is the 717s that Midwest owns and the rights that Midwest owns to fly from Milwaukee and, to a lesser extent, Kansas City. By the way, Airtran also flys 717s, which are outfitted in a much more constricted manner than MX's.

    This is a cheap way for Airtran to get its hands on MX's fleet of 717s. I think MX has 17 of them, which means that Airtran would be paying about 17.5 million per 717. I'm not sure if that is low or not as Airtran's bid also includes assuming MX's debt. MX also has a number of MD-88 and 82 aircraft and just signed an agreement to purchase two more.

    Anyway... Midwest came through the slump after 9/11 by changing its business model. Fuel prices have hurt it, as has happened to every airline, but it is becoming more profitable every quarter. It is still a fantastic airline and offers great seat pitch even on its lower-coster "Saver" flights; a full two inches more than Airtranny. And don't forget them cookies!!
     
  11. Norman Stansfield

    Norman Stansfield Active Member

    Re: Stay away, AirTran

    Here's the latest...

    http://www.jsonline.com/story/index.aspx?id=541468
     
  12. Re: Stay away, AirTran

    Sounds like some of the shareholders want to cash out for a profit. Nothing wrong with that. But check out that picture of the AirTran seats and compare it with this:

    http://tinyurl.com/y2ntp8
     
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