It looks like AirTran Airways (AAI) takeover bid of Midwest Airlines came to a lengthy end today. However, things still might get interesting as Northwest Airlines may surface as interested in investing with Midwest Airlines.
Northwest has already signed a code share agreement with Midwest Airlines and would have a minority interest in Midwest, as part of another as-yet-unnamed third party's bid to buy Midwest.
Calyon Securities analyst Ray Neidl said, "If it doesn't cost them too much, I think they'd be very interested in keeping AirTran out of their backyard.”
But a spokesperson for AirTran makes a good point, “Northwest Airlines is not a financial investor. They are a strategic investor, which means they will exert some control over Midwest Airlines, therefore raising significant antitrust issues.”
Is NWA scared of a little competition in their backyard? Milwaukee is very close to NWA’s large hubs in Minneapolis and Detroit.
AirTran wants to get into the Midwest and diversify their routes. The carrier planned on adding 74 daily flights over the next two years in Milwaukee, resulting in 1,100 new jobs if they were to buyout Midwest Airlines.
AJC.com
Related: AirTran Airways Allows Deal for Midwest to Expire
Comment Preview