Orlando-Based Carrier Takes Fight To Rival's Home State
While US Airways is no longer chomping at the bit for control of
Delta, that does not mean airline "merger mania" has disappeared
completely. This week, AirTran Airways reiterated its commitment to
a hostile takeover of Midwest Air Group.
In a filing with the US Securities and Exchange Commission,
AirTran outlined what is claims would be the benefits of its $345
million unsolicited buyout offer.
AirTran says a merger would create a new national low-cost
carrier -- and result in 1,100 new jobs in Wisconsin, home to
Midwest's Oak Creek headquarters. The Orlando, FL-based airline
also says a merger would add nearly $1 billion to the state
economy, once the airline expands available routes from Milwaukee's
General Mitchell International Airport.
And speaking of route expansion, AirTran says MKE would see 74
more daily departures, and 29 new destinations. The Business
Journal of Milwaukee reports AirTran says new flights to such
cities as Seattle, San Francisco, Houston, and Cancun would be
available if the merger occurs. Seating capacity would more than
double, the airline notes, and MKE would benefit from more than $21
million in additional airport and passenger fees.
In its filing, AirTran also said a merged carrier would maintain
or expand Midwest's current facilities around Milwaukee --
including training centers, a maintenance operation, and a call
center. The influx of new jobs would boost local payroll by some
$30 million, AirTran notes.
As Aero-News reported,
AirTran first offered $290 million for Midwest Airlines in
December. Midwest executives swiftly rejected that bid... as they
did a second offer in January. AirTran has since taken its case to
what it hopes will be a more receptive audience: Midwest
shareholders. So far, however, those investors appear to be heeding
Midwest's request to stick with the airline.
Midwest Air Group CEO Tim Hoeksema told The Associated Press an
AirTran merger would strip Midwest of its character -- by cramming
more seats onto its planes, and taking away the carrier's trademark
chocolate-chip cookies.
"I think their vision, based on what you read, is to convert it
to a commodity carrier that does not have the focus on service that
we do and to make it into a high density, low-cost product,
eliminate some of the things that we offer ... and turn it into
AirTran," Hoeksema said.