Low Cost Airline News - North America.Dec 18, 2006 AirTran Airways AirTran revealed the $290 million deal Wednesday, saying the two carriers are compatible and together could become a "national low-cost, high-quality airline" generating $3 billion in pro forma revenue next year. Despite the rosy scenario painted by its suitor, Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians and the Rocky Mts. More often it is restricted to the Old Northwest Territory and the neighboring states to the southern border of Missouri, E of the Great Plains. demurred, saying it prefers to go it alone as it has done since it began flying out of its Milwaukee hub in 1984. "We are successful because we provide customers with an exceptional travel experience," CEO Tim Hoeksema said yesterday, reiterating the company's rejection. "Our product and service are unique and are not readily compatible with another carrier." Dec 15, 2006 AirTran Airways AirTran Airways parent AirTran Holdings said it was bidding to take over Midwest Air for almost USD$300 million. Dec 14, 2006 AirTran Airways AirTran believes a merger would generate in excess of $60 million in annual synergies and approximately $3 billion in pro forma revenue next year. The route networks contain little overlap and would offer the combined carrier access to markets throughout the US Southeast, Midwest and East with major hubs in Atlanta and Milwaukee and secondary hubs at Kansas City, Chicago Midway, Baltimore/Washington International and Orlando International, creating more than $40 million in synergies. The other $20 million would come from cost reductions, much of which would be achieved by replacing Midwest's MD-80s with AirTran's new 737-700s. Dec 14, 2006 AirTran Airways AirTran maintains urge to merge despite Midwest's rejection. AirTran Airways revealed yesterday that it continues to be willing to wager approximately $290 million on the notion that opposites do indeed attract, as the prototypical low-cost carrier said it intends to forge ahead in its bid to acquire Midwest Airlines despite the Milwaukee-based full-service carrier's rejection of its initial overture. Dec 14, 2006 AirTran Airways AirTran nine-month revenues of $1.4 billion and a fleet of 123 aircraft comprising 87 717s and 36 737-700s, according to the Ascend CASE database, AirTran is considerably larger than Midwest, which operates 25 717s and 11 MD-80s, according to CASE, and had nine-month revenues of just under $500 million. Together the two account for around 2.2% of US RPKs. Dec 14, 2006 AirTran Airways AirTran responded Wednesday with a press release, presentation and letter from Chairman and CEO Joseph Leonard telling Hoeksema that a merger "better positions the combined company to compete against our larger rivals." But in a counter-statement, Hoeksema reiterated that Midwest wants to stay independent and said, "We view AirTran's offer at only about $5 per share, because it includes approximately $6 per share in cash that already belongs to our shareholders." Dec 14, 2006 AirTran Airways AirTran said it will continue to pursue the acquisition, with Leonard saying that "similar cultures, compatible low-cost business models, complementary networks and fleet commonality" make the carriers "as close to a perfect fit as anyone can imagine." Dec 14, 2006 AirTran Airways AirTran's first offer of $11.25 in cash and stock per Midwest Air Group share, which it said represented a 37% premium on the average closing price for the preceding 30-day period, was presented on Oct. 20 and rejected by Midwest Chairman, CEO and President Timothy Hoeksema in a letter dated Dec. 6 that said in part, "The company's strategic plan and remaining independent hold the best promise for continued growth and increased shareholder value going forward." Dec 14, 2006 AirTran Airways AirTran makes another offer to Midwest. AirTran said today it has made a buyout offer to rival carrier Midwest. According to AirTran's chief executive, Joe Leonard, his company originally outlined a merger proposal to Midwest in October, but Midwest rebuffed that proposal. Leonard today sent another letter to the Midwest board saying Airtran would continue to pursue a deal. AirTran Holdings, parent of AirTran Airways, wants investors in Midwest Air to persuade that carrier's management to reconsider a USD$290 million takeover bid, AirTran's chief executive said on Wednesday. Dec 13, 2006 JetBlue Airways JetBlue Airways flew 1.91 billion RPMs in November, an 11.7% increase over the year-ago month. Capacity rose 13.2% to 2.36 billion ASMs and load factor dropped 1.1 points to 80.8%. Dec 18, 2006 JetBlue Airways JetBlue may post profit in 2007. JetBlue's decision to slow its growth will help it return to profitability in 2007, an analyst predicts. The company hopes to earn more per passenger while keeping its airliners full. In late trading Monday, shares rose 3.6%, or 50 cents, to $14.30. Dec 12, 2006 Southwest Airlines Southwest Airlines flew 5.59 billion RPMs in November, an 11.9% increase over the year-ago month. Capacity grew 10.5% to 7.79 billion ASMs and load factor improved 0.9 point to 71.8%. Dec 14, 2006 Southwest Airlines US Transportation Security Administration named Mike Golden assistant administrator-operational process and technology, making him the agency's chief technology officer. Golden joins TSA from Southwest Airlines, where he served as senior director-airport security technologies. Dec 12, 2006 Z Editor: Aram Gesar, eMail: edit@AirGuideOnline.com For more global news, reviews, features and analysis, please go to: http://www.airguideonline.com/onlinenews.htm To Subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news To Advertise: advert@AirGuideOnline.com Dec 11, 2006 |
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