Southwest Airlines to Aquire AirTran for Approximately $1.4 Billion

[NYCA News]

NYCAviation:

Southwest Airlines to Aquire AirTrain for Approximatley $1.4 Billion (http://nycaviation.com/2010/09/southwest-airlines-to-aquire-airtrain-for-approximatley-1-4-billion/)

Southwest Airlines on early Monday morning announced that it has entered into a definitive merger agreement with AirTran Airways to acquire the airline for nearly $1.4 billion.
[Click to Read Full Article (http://nycaviation.com/2010/09/southwest-airlines-to-aquire-airtrain-for-approximatley-1-4-billion/)]

[Art at ISP]

I guess that means there will be a bunch of 717's on the market soon....

[MarkLawrence]

That is huge news!!! I wonder if they will still keep them as a separate entity....

[T-Bird76]

Wow..... Certainly didn't see this coming, I saw the news on this, this morning and had to look twice. This is going to firmly put Southwest in place as the dominant carrier in most major cities.

[JHNA57]

This is quick access to additional LGA slots, and does this mean service to HPN? AirTran also has a presence in the Caribbean

[runway27r]

http://farm5.static.flickr.com/4104/5029802244_13019d0dce_b.jpg

[hiss srq]

I walked into a wall reading this on my blackberry about an hour ago. WOW..... Well, this means some very cheap DC9 replacements for someone. The US Airline inndustry is going to get real tight. I bet Doug the horny merger dog Parker is already making calls looking for someone with a death wish to merge with now. This is going to make for a challenge to keep the O&D traffic at ATL. Southwest is going to flood that market with 40 dollar one ways. The glaring question now is will Southwest kill the small Ohio markets Cirtus inhabits and does so well in. On the plus side, SRQ will now have pretty much the dream team lineup of airlines I had always wanted to see operating there when I worked down there. Too bad it is almost a decade late.

[MarkLawrence]

Ryan - airTran has no DC9's anymore - they are all Boeing 717's. According to an article I was just reading - Southwest is going to bring airTran into the whole Southwest model - which seems to imply that we'll be seeing Boeing 717s in Southwest colors! Interesting those will be - get the special schemes while you can!!!!

[Spunker]

This was quite a shocker, really didn't see it coming. However, looks like 717's are staying, at least for awhile. Can't wait to see them in Canyon Blue! The biggest question is who's next?

[T-Bird76]

Ryan - airTran has no DC9's anymore - they are all Boeing 717's. According to an article I was just reading - Southwest is going to bring airTran into the whole Southwest model - which seems to imply that we'll be seeing Boeing 717s in Southwest colors! Interesting those will be - get the special schemes while you can!!!!

Mark, Ryan meant that an airline with DC9s will be able to replace them if Southwest decides to dump Airtrans 717s, which he's correct.

[MarkLawrence]

Mark, Ryan meant that an airline with DC9s will be able to replace them if Southwest decides to dump Airtrans 717s, which he's correct.

Ahhhh...that makes sense - now I see what he meant...sorry Ryan!!! :biggrin:

[hiss srq]

No worries. So here are a few interesting obsevations after thinking about this all day. After all of the Southwest complaining about UAL and CO coming together it seems like this was simply a concerted effort to get into the NY market as well as pick up that international feed. I bet Gordo and Tilton are banging on the DOT/DOJ door screaming by now about EWR slots. This will be interesting for Delta though. With the Delta NWA merger complete and cement complete will this open up the door for Delta to grab Alaska which would make a great deal of sense. I cannot see too many obsticles to this now. It only gets even more juscy from here on in. US Airways is the loser here for sure. Or at least it's employees. Parker and family better have a trick up their sleve because USAirways is dead meat now. Their Charlotte fortress is about as useful now to the US market as a pork stand in Mecca. Atlanta pretty much ensures that now. So the question is, will US die a painful death due to being rendered useless with exception of the Shuttle or will Parker, Kirby and Isom save their own arses and part east and west out like a BMW on the docks of Baltimore? The shuttle will fetch a pretty penny and I bet American and JetBlue would love to take a nice divy on that. PHL domestic is dead, I am sure American would love to grab PHX just to play tag with Southwest and than when they are bored with it pull a TWA St. Louis on them leaving that region as pretty much Canyon Blue land. Opinions? Tommy, I am sure you will have some really fun takes on this.
A note. I am a former US Airways Operations guy from LGA. It pains me to make those remarks because the people there are wonderful but our company just cant sustain and this merger makes US the gimp duck in the flock. Hopefully when it comes to frutiton it is done in a very dignifyed way. I just can't see it with the management's discontent for the east operation being so prevelant.

[Alex T]

Hiss--WN did not complain about UA/CO any more louder than other airlines did. The only thing WN was vocal about was the slot swap with US/DL That's it.

Just to highlite some things..

717 will stay within the fleet, and be merged into WN colors and operations.

DFW will be shut down immediatly as soon as the closer of the two airlines happens, if it does. Due to the Wright Amendmant clause and agreement, anything owned or operated by Southwest cannot operate out of DFW for the time being. A Codeshare can happen where WN will sell flights on FL to DFW, but once they are combined, DFW is done.

Change Fees will be dropped at FL ASAP

Bag Fees will be dropped at FL

Assigned Seating will not join WN, will remain No Assigned Seating

Business Class will not continue on to WN, WN remains a one class carrier for both combinations

WN plans to hire around 200 F/A's and 300 Pilots

Alex

[hiss srq]

Alex, I understand you are from WN but they certainly did. They screamed about a monopoly on the EWR market. A market they were not even a player in at all untill the DOJ said.. "Thanks for the gifts, strippers and for pete sake will you quit complaining. Here are some token slots".

[Alex T]

Alex, I understand you are from WN but they certainly did. They screamed about a monopoly on the EWR market. A market they were not even a player in at all untill the DOJ said.. "Thanks for the gifts, strippers and for pete sake will you quit complaining. Here are some token slots".

From WN sure, but I am not biased in any bit I only state facts.

WN was only vocal about getting more into NYC, not necessarily EWR specifically. There was never an out cry from WN themselves about slots at EWR nor a monopoly, please provide facts on that.

Only thing WN was vocal on is quoted in the article here...

http://chicagobreakingbusiness.com/2010/08/justice-department-approves-united-continental-merger.html
“We’ve been vocal about wanting to expand our New York area service since we entered the market,” said Southwest spokeswoman Brandy King. “It’s tough to get additional slots. The current situation provides a great opportunity.

The merger of UA/CO wouldn't be approved until some slots had been given up.

That's really it.

Alex

[Speedbird1]

I also was shocked to hear this sad news. I never flew on TRS but my friends did. I will certainly miss the attractive green tail, which I often saw from my window approaching LGA. The green color always reminded me of the old PIA tail-fin. As I have had to say too often, "Another one bites the dust".

[kc2aqg]

I personally think this is a great combination and buys WN some excellent and strategically viable FL assets; namely fleet, key cities & business markets, and international flying. It will be sad to see the FL brand go, but I think that WN just became a much stronger player nationwide. Not to mention that I have long wanted WN to enter the ATL market, just to have someone, anyone, to challenge DL and their ridiculous fares as of late (they have really been charging an arm and a leg lately to hub captives like me). Can't wait to shoot those purple 717s!

[T-Bird76]

I personally think this is a great combination and buys WN some excellent and strategically viable FL assets; namely fleet, key cities & business markets, and international flying. It will be sad to see the FL brand go, but I think that WN just became a much stronger player nationwide. Not to mention that I have long wanted WN to enter the ATL market, just to have someone, anyone, to challenge DL and their ridiculous fares as of late (they have really been charging an arm and a leg lately to hub captives like me). Can't wait to shoot those purple 717s!

Eh its not just Delta charging high fares as of late, AA has been sky high in and out of MKE the last few months to the point I've bee using Frontier because they are under 200 r/t. I'm chaulking it up to the summer peak season, but it certainly has eaten into my Plat renewal for 2011. Looks like it will be Gold for me next year...oh well.

[LGA777]

Just want to add a few thought on this. Some believe the 717's will eventually go, but despite WN's previous single fleet type strategy I think with an 86 strong and growing fleet they will be around for a while, and would not be at least surprised even to see WN try and acquire the former YX 717 fleet now that Mexicana Click is grounded. I see the 735/733 fleet leaving down the road before the much newer and more efficient 717's do. I think the 738 is even more likely now. and probably in bigger numbers, especially since WN can't grow ATL any more than what FL has now gate wise. As far as LGA I think MDW-BWI-ATL will stay but CAK and PHF will probably go away as WN can use the slots for higher demand markets and WN can shift flights out of those 2 cites to large WN cities like BWI and MDW. MKE could be interesting, they may give some of that market to YX/F9 as MDW is so close. All of this is strickly LGA777 speculation and my 2 cents. And finally to address HISS's comments, while this is not good news for US it is by far doom and gloom as you are suggesting, you try and come off so smart but their is so much you don't know, US will survive this and we are actually doing quite well frankly. Your former co-workers continue to appreciate your spewing, you are older but not wiser sir !