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Aug19
Midwest Airlines Accpets Buy Out Offer From TPG and NWA

The saga that was the hostile takeover bid for Midwest Airlines is coming to an end.  The airline accepted the buyout offer from TPG and Northwest Airlines, even after AirTran came back the next day with a newer and larger offer. 

Northwest Airlines will be a passive investor and will not participate in Midwest Airlines management.  However, some are saying that TPG might want to cash out of the deal, leaving NWA the sole investor in Midwest Airlines. 

The deal is expected to go through. 

Good job Midwest.  You might have saved the cookies for now but you sold yourself to a bigger evil. 

This could be a golden opportunity for AirTran Airways though.  My advice for the airline is to hit Midwest where it hurts.  Obviously NWA wants to protect their own backyard.  But MCI (Kansas City) is left wide open.  AirTran needs to ramp up services out of MCI.  Match route schedules on certain routes with Midwest and price them competitively.  Midwest will die without a second hub. 

A lot of people feel strong on this subject.  What’s your opinion on it? 

Chicago Tribune 


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