SWA to buy AIRTRAN

Old Sep 27, 10, 5:03 am
  #1  
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SWA to buy AIRTRAN

RUMOR

Very reliable
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Old Sep 27, 10, 5:12 am
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Details...
http://pressroom.airtran.com/phoenix...856&highlight=
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Old Sep 27, 10, 5:13 am
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Not a rumor. Acquisition website is here:

http://www.lowfaresfarther.com/

Crazy way to start a Monday! I wonder if the cow costumes are included.
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Old Sep 27, 10, 5:25 am
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Not all that surprising, as FL stock has been plummeting all summer, down by about 11% in three months.
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Old Sep 27, 10, 5:41 am
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Well I guess the birdie that I know that works for Southwest was right?

Whlie making no mention of purchasing WN buying FL, she told me in May 2010 that by the end of the year Southwest would be serving Cancun. I thought she was nuts for saying that. Perhaps she is not the space cadet that I thought she was.

P.S. She mentioned that Hawaii service would also be happening eventually.
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Old Sep 27, 10, 5:42 am
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I really see this as WN's way of entering into the ATL market... this time successfully!
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Old Sep 27, 10, 5:44 am
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so, it seems AA and US are the odd ones out
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Old Sep 27, 10, 5:47 am
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Originally Posted by emma dog View Post
I really see this as WN's way of entering into the ATL market... this time successfully!
Yep, FINALLY. Just got the email from RR about it.

And UTM, here I come! (anybody know what that is without looking it up?)

Last edited by toomanybooks; Sep 27, 10 at 6:11 am
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Old Sep 27, 10, 6:00 am
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Originally Posted by toomanybooks View Post
Yep, FINALLY.

Just got the email from RR about it.
From RR...


Southwest Airlines' Definitive Agreement to Acquire AirTran


Dear Xxxxxxx,

As one of our most valued Customers, I wanted you to be among the first to know the exciting news that Southwest Airlines has entered into a definitive agreement to acquire AirTran Holdings, Inc., a parent company of AirTran Airways (AirTran). Although the closing of the deal depends on a number of approvals, we're all very excited about what it can mean for the Customers, Employees, Communities, and Shareholders of both organizations.

If approved, the acquisition will allow Southwest to offer low fares and exceptional Customer Service in more markets and to more loyal Customers like you.

More Access to More Destinations

Our new, broader national presence will benefit many markets as a result of increased competition stimulated by Southwest's low fares and well-known brand. This includes significant opportunities to and from Atlanta, the largest domestic market we do not serve. It expands our presence in key markets, like New York LaGuardia, Boston Logan, and Baltimore/Washington, as well as enables us to serve Washington D.C. via Ronald Reagan National Airport. Also, it presents the opportunity to provide access to key international leisure markets in the Caribbean and Mexico, and extend our service to many smaller domestic cities that we don't serve today.


What Changes Today?

There are no changes to the way you travel on Southwest today or in the near future. Until the transaction closes and we've received the required regulatory and AirTran Stockholder approvals, Southwest and AirTran will continue to operate as independent companies. After closing, Southwest plans, over time, to integrate AirTran into the Southwest Airlines brand to develop a consistent Customer Experience.

This, of course, includes combining the carriers' frequent flyer programs. Meanwhile, credits and awards in both programs remain valid, and you will continue to earn credits by flying or using our partners just as you do today.

There's a lot of work to be done and decisions to be made. We'll keep you informed of developments. In the meantime, we invite you to visit a special website we've created www.lowfaresfarther.com where you'll find regularly updated news and information about the deal.

Thanks for your continued loyalty and support of Southwest Airlines!


Sincerely,

Kevin Krone
Vice President Marketing, Sales, and Distribution
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Old Sep 27, 10, 6:07 am
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Originally Posted by curbcrusher View Post
Not a rumor. Acquisition website is here:

http://www.lowfaresfarther.com/

Crazy way to start a Monday! I wonder if the cow costumes are included.
That website ain't ready for prime time. Link after link won't come up for me.
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Old Sep 27, 10, 6:08 am
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What will happen to FL's service at DFW? What is the plan for FL employees? The acquisition website contains curious language:
That is why we plan to provide AirTran Crew Members an opportunity to work for Southwest, although some of the opportunities may require a change in location or position.
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Old Sep 27, 10, 6:09 am
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AAI stock up 54% this morning in pre-trading.

LUV market cap 15x that of AAI. Nice digestible acquisition, one would think.

LUV stock at P/E of 41. AAI in the 20s. May be a good use of stock, if that's how they structured the offer.

Last edited by toomanybooks; Sep 27, 10 at 6:18 am
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Old Sep 27, 10, 6:10 am
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Wow. Hadn't caught a whiff of this before this morning.

It's amazing how much the WN model has changed from the airline of yesteryear, which used to be averse to serving congested, delay-prone fortress airports.

In the interest of downward pressure on airfares, I'm beginning to worry about the ever-shrinking list of major domestic airline players. I can't believe how many established brands have gone by the wayside in recent years or are about to do so.
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Old Sep 27, 10, 6:16 am
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Originally Posted by sleeplessinNL View Post
so, it seems AA and US are the odd ones out
DO it! Get me a few more eVIPs please. All the TIB miles in US are burning a hole.
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Old Sep 27, 10, 6:21 am
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Originally Posted by toomanybooks View Post
That website ain't ready for prime time. Link after link won't come up for me.
I have a feeling the site is overwhelmed. It's being hosted by a small provider in MSP, not on either WN's or FL's infrastructure.
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