Deal Expected To Close By December

Shareholders in Midwest Air Group have approved the sale of the airline to a private capital group backed by Northwest Airlines.

The Milwaukee Journal-Sentinel reports around 150 shareholders attended the Tuesday meeting to vote on the $451.8 million sale of Midwest Airlines to TPG Capital and Northwest. Under terms of the deal, TPG would own a 53% stake in Midwest, while Northwest would own a 47% non-management stake -- meaning Northwest would have no direct input on Midwest's operations.

The deal must still pass scrutiny with federal anti-trust regulators. That process was delayed when the Justice Department requested more information on terms of the sale October 4.

"We expect the Department of Justice will eventually approve this transaction," Midwest Chairman and CEO Timothy Hoeksema said this week.

As ANN reported, Midwest management agreed to TPG's $17-per-share buyout offer in August, putting a final end to repeated attempts by rival AirTran Airways to force a hostile takeover.

Hoeksema, who will remain CEO of Midwest following the buyout, said he expects "positive things" for the airline in 2008, as a cabin redesign of its mainline fleet takes hold. That redesign -- announced in May -- adds two-class seating to its Boeing 717s and MD-80s, to boost capacity and raise additional revenue.

FMI: www.midwestairlines.com, www.texaspacificgroup.com, www.nwa.com