Company Watch - AirTran Airways.

Apr 30, 2007

Hedge fund urges Midwest to negotiate with AirTran Hedge fund Octavian Advisors is urging Midwest Air Group to begin talks with AirTran Airways. The fund says it owns about 6% of Midwest. "In light of AirTran's materially increased offer, both sides should now come together for good faith negotiations," Octavian CEO Richard Hurowitz said in a letter to Midwest CEO Timothy Hoeksema made public Thursday. Midwest could not be reached for comment. AirTran's offer will expire May 16 Apr 27, 2007

AirTran Holdings reported net income of $2.4 million for the first quarter ended March 31, reversing the $8.8 million loss posted in the same period a year earlier. Revenues jumped 21.3% to $504.5 million while expenses rose 14.9% to $491 million, producing an operating profit of $13.4 million compared to an operating loss of $11.3 million in the 2006 quarter. "We obviously feel a sense of satisfaction with the first quarter even though the profit is not larger," Chairman and CEO Joe Leonard said. "The first quarter is always a tough quarter because of January." Apr 26, 2007

AirTran carried a record 5.5 million passengers in the period. The addition of 20 Boeing 737-700s and two 717-200s to the fleet boosted ASMs 20.5% to 5.21 billion. ASMs grew 19.2% to 3.65 billion, lowering load factor 0.7 point to 70.1%. Although fuel expense was up 13.7% to $166 million, CASM fell 4.7% to 9.4 cents and nonfuel CASM declined

4.1% to 6.24 cents. RASM was down 0.4% to 9.2 cents but yield improved 0.6% to 13.13 cents. Leonard said the carrier will continue to pursue acquisition of a reluctant Midwest Airlines. "We are confident that at the end of the day we will prevail," he said. Apr 26, 2007

Editor: Aram Gesar, eMail: [e-mail] For Air Transport & Travel Business Experts contact eMail: [e-mail]

For more global news, reviews, features and analysis, please subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news

To Advertise: [e-mail]

AirGuideFlightTracker is a new, free service that aims to keep travelers informed flight and airport status via the Web. For more go to http://www.airguideonline.com/airline_tracker.htm

Copyright [c] 2007 Air Travel Media / Pyramid Media Group. All rights reserved.

Apr 23, 2007