SAAB,

There's a good summary about 10 threads below this one entitled Airtran + Midwest = True ? It explains Air Tran's attempt to takeover Midwest and then Midwest's agreement to hear them out. It goes on to say that a finance group named TPG made a better offer for Midwest Express that will allow them to stay as a stand alone entity. It also suggests that TPG has ties to Northwest, but is not NWAC per se. The Wizard of Oz scenario, don't look at the man behind the curtain, just look at the screen.

I believe this provides a synopsis, but please refer to the aforementioned thread for accuracy.

In my opinion, this was a strategic move by TPG/NWAC to prevent further poaching of their prized North Central route structure and their operation in Milwaukee. Also an opinion, the folks at NWA are realizing a reduction in revenue per avail seat mile (RASM) at MSP with Air Tran's entry into a handful of markets there. I believe this strong reaction was in part due to what happened at Detroit (DTW) with the addition of Southwest, a handful of charter airlines and recently Air Tran.
Basically, NWA saw what happened at DTW with the addition of Low-cost carriers and drew a line in the sand with regards to Air tran operating in the backyard of MSP and the focus city of MKE.

Will this cause further mergers ???

No one knows, but I'll throw out an opinion to give this thread room for discussion.

What's Air tran's next move ?? My guess is that Forklift Joe might look into the world of codesharing or acquisition with/of a regional carrier again. Citrus has Boeing working overtime on deliveries of the 737s, and it's my guess that the 717 market is dry as a bone. So Air Tran is getting airframes as quick as they can be delivered, but is it fast enough or will Air Tran look at another airline for more uplift. IMHO, they will look at a codeshare or acquisition.

Where or who ? I speculate that Joe Leonard will look at a mid-America hub in the neighborhoods of maybe STL, MCI, OKC or IND and buddy up with Ornstein, Hulas or Shuttle America ? This is my guess, and just that: a guess.

Everyone else ? I for one was surprised at AWA/USAir's attempt to takeover Delta. I think it's failure has everyone backing away from the merger mania. In addition, airlines are in a precarious position. They are finally posting somewhat consistent profits which have prompted labor to querry management about long overdue wage snapbacks. In addition, the US economy is in my opinion slowing back down with the indicators of a slowing housing market, stock market volatility, interest rate uncertainty, and skyhigh energy costs. Generally, these factors makes it hard for an airline board of directors to allocate millions or billions for mergers and acquisitions.

Just my two cents...I'd be curious of other opinions.

FF