Actually, only part of the deal was funded with AirTran stock. Much of the funding was to come from two sources-the cash Midwest had on hand ($100 + million) and external financing. The latter is what gave the Midwest Board of Directors such concern. AirTran had a clause in the offer allowing them to walk away from the deal if they couldn't arrange financing at an attractive interest rate. Given the melt down in the credit markets last fall, AirTran would have had difficulty in closing the deal. I'm not saying it would have been impossible for them to get financing, but that was one of the primary reasons given by the Board of Directors last August when they opted for the all cash deal from TPG/Northwest.

The Board of Directors made the right decision at that time. It continues to be the correct decision, despite everything that has happened since. If people look at the cold hard facts instead of thinking with emotions, they'll come to the same conclusion as well. I'm sure AirTran is relieved that they didn't acquire Midwest after all.

As for AirTran's "plan" for Milwaukee, they would have been cutting service left and right in the present environment. If you recall, 40% of the flights were to be on the CRJ or FRJ. The CRJ can work for Midwest because of the higher fares and traffic mix they receive. They would have never worked under the AirTran/LLC model. Milwaukee may have had some flights to the West Coast still intact but significant cuts would have still been made.

I'd take a stop in MCI over a stop or drive to ORD any day! That said, I'd probably take the chance at an upgrade and stop in MSP over either of those.


As for the whole FL merger talk...it is over...Blue said it well. I'm sure FL is very happy now given that they are cutting flights throughout their network, YX is still flying and they wouldn't be today with the merger. As a former shareholder, I couldn't be happier. That deal was the most lucrative it ever could have been and closed at the best time possible in terms of the market, which is enough for me.

I hope for the employees of YX that it will weather this storm (as they have all the prior ones). If YX handles this restructuring well, maybe it will emerge as a stronger airline that truly is the best care in the air. If it happens, what may be difficult for some to accept, is that the old YX wasn't always an option for the average flyer, and as it redefines its niche, this may become true again.



On another note, it would only help the situation to allow for increased US oil drilling and refining. Perhaps Congress will decide to act in the interest of ALL its citizens and corporations and act before the summer is out. That action would have an immediate effect on the speculators and the world oil market!

Perhaps, President Obama will be able to solve the problem!!!!!!