Midwest fate with NWA/DAL merger

[FlyWolf]

With the DAL/NWA merger becoming a reality, I wonder what will be Midwest fate in all this, it even looks like the TPG deal won't close before a DAL/NWA merger.

I must admit I have a bad feeling about what will happen to Midwest in the next few month, it seems like Midwest management have no plan at all if the TPG/NWA deal doesn't go through.

 

[Kharma Police]

With the DAL/NWA merger becoming a reality, I wonder what will be Midwest fate in all this, it even looks like the TPG deal won't close before a DAL/NWA merger.

I must admit I have a bad feeling about what will happen to Midwest in the next few month, it seems like Midwest management have no plan at all if the TPG/NWA deal doesn't go through.

Maybe, you will be working for Delta?

 

[Eagle757shark]

With the DAL/NWA merger becoming a reality, I wonder what will be Midwest fate in all this, it even looks like the TPG deal won't close before a DAL/NWA merger.

I must admit I have a bad feeling about what will happen to Midwest in the next few month, it seems like Midwest management have no plan at all if the TPG/NWA deal doesn't go through.

Down here in Atlanta, it appears that Delta will be merging with Northwest. Looks like KLM and Air France may be putting up money to assist with the transaction. FlyWolf, what is the general feeling around the house regarding this potential transaction. Does your management feel like TPG may walk away. DOJ probable is taking a potential Delta/NW merger into account when deciding on TPG/Midwest. Will TPG put up the remaining money if NW backs out? It has been very quiet on the Midwest front.

 

[CitationLover]

i think the bottom line is the DAL/NWA merger can be announced, etc. but there is no way it closes before the tpg/nwa/meh deal closes. the doj will spend a lot of time on this deal, coming fast as i believe the airlines want this deal approved by a "friendly" bush administration and not a possible clinton / obama administration.

the company publicly says, no big deal, it still happens.
http://www.tradingmarkets.com/.site/news/Stock News/998286/

Airline deal would still fly: Northwest sale to Delta won't stop buyout of Midwest, executive saysThursday, January 17, 2008; Posted: 04:56 AM

function openprcharts(popurl){var winpops=window.open(popurl,"prchart","width=1000,height=800,status,scrollbars,resizable")} Jan 17, 2008 (Milwaukee Journal Sentinel - McClatchy-Tribune Information Services via COMTEX) -- NWA | news | PowerRating | PR Charts -- Any sale of Northwest Airlines Corp. to Delta Air Lines Corp. would not affect the pending sale of Midwest Air Group Inc. to Northwest and a Texas investment firm, a Midwest Air executive said Wednesday. The Oak Creek parent of Midwest Airlines still expects to complete its $451.8 million sale to TPG Capital and Northwest by Jan. 31, said Carol Skornicka, senior vice president of corporate affairs.
Northwest is in talks with Delta regarding a possible merger, House Transportation Committee Chairman James Oberstar (D-Minn.) said in remarks first reported by the Minneapolis Star Tribune. Oberstar generally does not favor airline consolidation and would likely hold hearings on any proposed merger, said his spokesman, Jim Berard.
Meanwhile, the sale of Midwest Air to TPG/Northwest is still being reviewed by U.S. Department of Justice antitrust regulators.
TPG Capital, a private equity firm based in Fort Worth, Texas, would own a 53% stake in Midwest Air. Eagan, Minn.-based Northwest would own a 47% stake but would not participate in management or control of Midwest. Northwest would have the option to eventually buy TPG's stake.
Midwest Air, through Midwest Airlines and regional carrier Midwest Connect, holds a 54.1% market share at Mitchell International Airport, according to airport data. Northwest is the No. 2 carrier at Mitchell, with a 12.6% market share, and Delta is No. 4, at 6.6%.
The No. 3 carrier at Mitchell International, with a 7.2% share, is AirTran Holdings Inc. of Orlando, Fla. AirTran in August dropped its takeover campaign for Midwest Air after being outbid by TPG/Northwest.
"We see no impact from these discussions on (Department of Justice) approval of our transaction," Skornicka said. "Keep in mind that we are not merging with Northwest at this time. If that would happen down the road, the DOJ would be required to conduct a fresh analysis that would include then-current market conditions."
A Northwest spokesman declined to comment, and a Delta spokesman couldn't be reached for comment.
Some airline industry analysts said reports of Delta's interest in buying either Northwest or UAL Corp., the Chicago-based parent of United Airlines, could affect the Midwest Air sale.
"In my opinion, everything could be up in the air if things start to move along these lines," said Ray Neidl of Calyon Securities in New York.
A Northwest sale to Delta offers greater opportunities to cut costs than a sale of United to Delta, according to an analysis conducted by Morningstar Corp., a Chicago investment research company.
But Delta executives might be concerned that Northwest's planned 47% stake in Midwest Air, along with Northwest's option to buy Midwest, would cause problems in gaining antitrust approval for Delta to buy Northwest, said Marisa Thompson of Morningstar.
Under that scenario, a combined Delta/Northwest/Midwest could eventually control over 73% of the market at Mitchell International. Delta executives would likely seek assurances from Northwest that such a scenario wouldn't hurt the chances of a Delta/Northwest merger gaining antitrust approval, Thompson said.

all i know is delta pay rates would be a major improvement over our current rates for FO's. and these are their lowest, MD88, pay rates.

1yr FO - $41 to $49 a 19.5% raise
3yr FO - $63 to $79 a 25.4% raise
5yr FO - $71 to $84 a 18.3% raise
7yr FO - $76 to $88 a 15.8% raise
9yr FO - $81 to $91 a 12.3% raise

 

[Eagle757shark]

i think the bottom line is the DAL/NWA merger can be announced, etc. but there is no way it closes before the tpg/nwa/meh deal closes. the doj will spend a lot of time on this deal, coming fast as i believe the airlines want this deal approved by a "friendly" bush administration and not a possible clinton / obama administration.

the company publicly says, no big deal, it still happens.
http://www.tradingmarkets.com/.site/news/Stock News

all i know is delta pay rates would be a major improvement over our current rates for FO's. and these are their lowest, MD88, pay rates.

1yr FO - $41 to $49 a 19.5% raise
3yr FO - $63 to $79 a 25.4% raise
5yr FO - $71 to $84 a 18.3% raise
7yr FO - $76 to $88 a 15.8% raise
9yr FO - $81 to $91 a 12.3% raise

Of course Midwest management is going to say the talks between NW and Delta don't affect their transaction publicly. As was mentioned in the article,
the transaction is probable being evaluated closely now that this merger may be announced. But just an annoucement will make the DOJ look closely at TPG/Midwest. Timmy and Carol are sweating bullets behind closed doors.

 

[CitationLover]

Of course Midwest management is going to say the talks between NW and Delta don't affect their transaction publicly. As was mentioned in the article,
the transaction is probable being evaluated closely now that this merger may be announced. But just an annoucement will make the DOJ look closely at TPG/Midwest. Timmy and Carol are sweating bullets behind closed doors.

look at it this way. if TPG/NWA/MEH doesn't pass the DoJ do you think DAL/NWA will? I am sure the full political weight of the ATA is on the government to approve all these mergers.

 

[deadstick]

Timmy and Carol are sweating bullets behind closed doors.

I misread this the first time and about puked. uke:

 

[CitationLover]

I misread this the first time and about puked. uke:

admit it, she's hot (in a janet reno sort of way).....

http://www.regal-beloit.com/directors/skornicka.png
http://www.dwd.state.wi.us/dwd/DWDHistory/images/carol_skornicka.jpg

 

[deadstick]

admit it, she's hot (in a janet reno sort of way).....

http://www.regal-beloit.com/directors/skornicka.png
http://www.dwd.state.wi.us/dwd/DWDHistory/images/carol_skornicka.jpg

Don't EVER use "Janet Reno" and "hot" in the same sentence!

 

[Taildragon]

Damn, this thread got derailed.