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.

FMI: www.airtran.com, www.midwestairlines.com