AirTran Reporter

Joined: 17 Jun 2005
Posts: 341
Location: Indianapolis

WHen will airtran give up? Why would they still want to go after Mdwest when so many employees have made it known that they do not want to be taken over by FL? I understand that FL needs a different hub but even if they were to get Midwest, i think they would be in a hole because if the Midwest employees are not happy, then they can "take down" fl with them. Any thoughts?

Site Admin

Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

Guy on CNBC today said exactly that - airline mergers are hard. Hostile airline mergers are even harder, becuase success in this business depends so much on employee morale (look at Southwest's employee morale, for example). Airtran may just be reaching a little bit.

Of course, they could buy YX for the assets (planes, routes, equipment), fire everyone, shut down the MKE hub, and replace it all with their own people at IND!

Site Admin

Joined: 15 Jun 2005
Posts: 2316
Location: Indianapolis, IN

YX's share of MKE isn't all that hot. I mean its good but not spectacular. I think it was in the area of 50%. It is no bigger than what US had when they had their hub here. The number of seats in and out of MKE isn't all that great to begin with. What YX has is a great deal of loyalty in the MKE community and especially in the MKE business community. If this merger goes through you will see that loyalty destroyed and that base will split up. Some will stay with the new company. Many others will move to the likes of NW, CO, DL, etc. You may see others just making the drive to ORD to take AA or UA.

The new FL at MKE will lose so many passengers that maintaining a profitable hub will be impossible. They will do what many expect and take the equipment and run. Where they will go is anyones guess. But I think in a few years YX at MKE will be nothing more than US at IND.