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AirTran: Midwest merger would add 1,100 state jobs, $1B to local economy
Monday February 26, 6:36 pm ET
AirTran Holdings Inc. said a merger with Midwest Air Group Inc. would add 1,100 jobs in Wisconsin and create nearly $1 billion in economic benefit for the state following its planned expansion of service.
The Orlando, Fla.-based airline unveiled details of its post-merger expansion in a filing Monday with the U.S. Securities and Exchange Commission. AirTran is seeking a $345 million unsolicited buyout of Midwest, which has rejected its offer.
AirTran said it expects to add 74 more daily departures and 29 new destinations under its expansion plans following a merger, according to documents. It expects to add 50 new jet departures per day at General Mitchell International Airport in Milwaukee by summer 2009, resulting in a 50 percent increase to 215 daily flights.
AirTran listed 29 new cities that it would fly to out of Milwaukee that Oak Creek-based Midwest Airlines doesn't currently serve nonstop. Some of those cities, which Midwest flies to or will fly to through its Kansas City, Mo., hub, are Seattle, Vancouver, San Francisco, Houston, San Antonio and Cancun, Mexico.
Seating capacity is expected to more than double, with the expansion achieved through the added service, additional destinations and conversion to a fleet of 128 Boeing 717s. Midwest now uses a combination of Boeing 717s and other aircraft with smaller seating capacities.
AirTran said a merged airline would maintain training facilities, a call center, aircraft maintenance, and a marketing services center in the Milwaukee area. The 1,100 employees that would be added would boost payroll by more than $30 million.
Mitchell International would also benefit from $11 million more in annual airport fees, and more than $10 million more in passenger facility fees a year.
The state would also benefit from more than 3.7 million new visitors and non-airport spending of $460 million per year, AirTran claims.
AirTran (NYSE: AAI - News) has been trying to convince the shareholders of Midwest Air Group (AMEX: MEH - News) to tender their shares under an exchange offer AirTran commenced in January. Midwest is telling shareholders to reject the offer, saying that it is inadequate and does not take into account the value of the company's own strategic plan for growth.
Published February 26, 2007 by The Business Journal</I>
AirTran: Midwest merger would add 1,100 state jobs, $1B to local economy
Monday February 26, 6:36 pm ET
AirTran Holdings Inc. said a merger with Midwest Air Group Inc. would add 1,100 jobs in Wisconsin and create nearly $1 billion in economic benefit for the state following its planned expansion of service.
The Orlando, Fla.-based airline unveiled details of its post-merger expansion in a filing Monday with the U.S. Securities and Exchange Commission. AirTran is seeking a $345 million unsolicited buyout of Midwest, which has rejected its offer.
AirTran said it expects to add 74 more daily departures and 29 new destinations under its expansion plans following a merger, according to documents. It expects to add 50 new jet departures per day at General Mitchell International Airport in Milwaukee by summer 2009, resulting in a 50 percent increase to 215 daily flights.
AirTran listed 29 new cities that it would fly to out of Milwaukee that Oak Creek-based Midwest Airlines doesn't currently serve nonstop. Some of those cities, which Midwest flies to or will fly to through its Kansas City, Mo., hub, are Seattle, Vancouver, San Francisco, Houston, San Antonio and Cancun, Mexico.
Seating capacity is expected to more than double, with the expansion achieved through the added service, additional destinations and conversion to a fleet of 128 Boeing 717s. Midwest now uses a combination of Boeing 717s and other aircraft with smaller seating capacities.
AirTran said a merged airline would maintain training facilities, a call center, aircraft maintenance, and a marketing services center in the Milwaukee area. The 1,100 employees that would be added would boost payroll by more than $30 million.
Mitchell International would also benefit from $11 million more in annual airport fees, and more than $10 million more in passenger facility fees a year.
The state would also benefit from more than 3.7 million new visitors and non-airport spending of $460 million per year, AirTran claims.
AirTran (NYSE: AAI - News) has been trying to convince the shareholders of Midwest Air Group (AMEX: MEH - News) to tender their shares under an exchange offer AirTran commenced in January. Midwest is telling shareholders to reject the offer, saying that it is inadequate and does not take into account the value of the company's own strategic plan for growth.
Published February 26, 2007 by The Business Journal</I>
