Comments on: The Midwest Airlines Tug-o-War’s Impact on Customers http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/ Fri, 09 Jan 2009 15:28:28 +0000 http://wordpress.org/?v=2.7 hourly 1 By: The Cranky Flier » AirTran Starts in on Milwaukee http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-4462 The Cranky Flier » AirTran Starts in on Milwaukee Wed, 29 Aug 2007 14:52:16 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-4462 [...] how I said there was no reason AirTran couldn’t try to build up Milwaukee on its own even after failing [...] [...] how I said there was no reason AirTran couldn’t try to build up Milwaukee on its own even after failing [...]

]]> By: CF http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-4108 CF Mon, 20 Aug 2007 00:35:41 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-4108 I think the real question is - what does TPG get out of this? They're paying a pretty high price for an airline with little strategic value for them. Northwest holds the key here. There had to have been some behind the scenes talks with NW about this and NW has to have a lot more influence than their stake would imply. For more, head on over to see what Holly Hegeman says about it at planebuzz.com. Unfortunately, the site appears to be down right now, but I'm sure it'll be up soon. I think the real question is - what does TPG get out of this? They’re paying a pretty high price for an airline with little strategic value for them. Northwest holds the key here. There had to have been some behind the scenes talks with NW about this and NW has to have a lot more influence than their stake would imply.

For more, head on over to see what Holly Hegeman says about it at planebuzz.com. Unfortunately, the site appears to be down right now, but I’m sure it’ll be up soon.

]]> By: JN http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-4076 JN Sat, 18 Aug 2007 21:23:28 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-4076 So if you do the research on TPG, you'll see that NW only has 18% in the deal. You make it sound like TPG is going to hand over NW when the dust settles! It took TPG 11 years to sell off their portion of America West, according to an article in the Houston press earlier this week. Where do you get idea that NW is assuming command of Midwest operations so soon? So if you do the research on TPG, you’ll see that NW only has 18% in the deal. You make it sound like TPG is going to hand over NW when the dust settles! It took TPG 11 years to sell off their portion of America West, according to an article in the Houston press earlier this week. Where do you get idea that NW is assuming command of Midwest operations so soon?

]]> By: SD http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3982 SD Thu, 16 Aug 2007 17:15:35 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3982 We frequent fliers in Milwaukee mourn the death of our airline. There simply isn't any good outcome. Yea, we will have to the cookies, but what about all 2x2 seating? That will go by the wayside when YX tries to improve it's financial condition. What's wrong with the financial condition? Not much considering how tense the bidding is for the airline. In any case, we will all lose. Either NW will gut the thing and replace it with a 25% cancellation rate and surly flight attendants, or they will replace the leather seats with Velveteen and make us all connect through an already overburdened and delay ridden Atlanta. There is no good answer. Oh well. Life is a series of changes. Too bad too.. it just got the "best domestic Airline" award for 2007. That will certainly change once it gets in the hands of NW or AT. We frequent fliers in Milwaukee mourn the death of our airline. There simply isn’t any good outcome. Yea, we will have to the cookies, but what about all 2×2 seating? That will go by the wayside when YX tries to improve it’s financial condition. What’s wrong with the financial condition? Not much considering how tense the bidding is for the airline. In any case, we will all lose. Either NW will gut the thing and replace it with a 25% cancellation rate and surly flight attendants, or they will replace the leather seats with Velveteen and make us all connect through an already overburdened and delay ridden Atlanta.

There is no good answer. Oh well. Life is a series of changes. Too bad too.. it just got the “best domestic Airline” award for 2007. That will certainly change once it gets in the hands of NW or AT.

]]> By: Viva in MKE http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3979 Viva in MKE Thu, 16 Aug 2007 15:30:21 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3979 Spot on assessment on this CF. Airtran will grow this market! The flack they get from pulling service from markets that are not working (i.e. DFW) is just smart business sense. Interesting how the local media have turned in favor of Airtran once they learned there is always a worse alternative. - Viva-Vegas Spot on assessment on this CF. Airtran will grow this market! The flack they get from pulling service from markets that are not working (i.e. DFW) is just smart business sense. Interesting how the local media have turned in favor of Airtran once they learned there is always a worse alternative. - Viva-Vegas

]]> By: notjustin@hotmail.com http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3953 notjustin@hotmail.com Thu, 16 Aug 2007 04:30:14 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3953 I think you're right on target CF. I think you’re right on target CF.

]]> By: CF http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3935 CF Wed, 15 Aug 2007 20:06:56 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3935 I mean, I'd expect to see AIRTRAN do ok. I mean, I’d expect to see AIRTRAN do ok.

]]> By: CF http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3934 CF Wed, 15 Aug 2007 20:06:34 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3934 I may be on the optimistic side here. AirTran does like to go in and out of markets faster than the blink of an eye. But I think there is opportunity in Milwaukee for growth of a low fare/low frills airline so I'd expect to see Midwest do ok. I may be on the optimistic side here. AirTran does like to go in and out of markets faster than the blink of an eye. But I think there is opportunity in Milwaukee for growth of a low fare/low frills airline so I’d expect to see Midwest do ok.

]]> By: Eric http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3933 Eric Wed, 15 Aug 2007 19:21:34 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3933 Cranky, while I usually agree with you, I think you're a little too optimistic about AirTran's ability to hold their own at MKE in the long term. They already proved in DFW that they don't have a lot of staying power outside of ATL or MCO. An acquisition of Midwest by AirTran may provide employees some job security for the short term, but I'm not as convinced that would be the case for the long term. Assume for a moment that TPG & NWA lose out to Airtran. I won't go as far as to say that NWA would take a scorched earth approach by not being the winning bider, but MKE isn't a protected haven like LGB, and it isn't a fortress hub like DFW. It wouldn't take a whole lot of effort on their part (or any other legacy for that matter) to make life really ugly in MKE. And if that happens, AirTran will fold up their tent and cut there losses. And the former YX employees will lose the most. Cranky, while I usually agree with you, I think you’re a little too optimistic about AirTran’s ability to hold their own at MKE in the long term.

They already proved in DFW that they don’t have a lot of staying power outside of ATL or MCO. An acquisition of Midwest by AirTran may provide employees some job security for the short term, but I’m not as convinced that would be the case for the long term.

Assume for a moment that TPG & NWA lose out to Airtran. I won’t go as far as to say that NWA would take a scorched earth approach by not being the winning bider, but MKE isn’t a protected haven like LGB, and it isn’t a fortress hub like DFW. It wouldn’t take a whole lot of effort on their part (or any other legacy for that matter) to make life really ugly in MKE.

And if that happens, AirTran will fold up their tent and cut there losses. And the former YX employees will lose the most.

]]> By: CF http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/comment-page-1/#comment-3932 CF Wed, 15 Aug 2007 17:56:49 +0000 http://crankyflier.com/2007/08/15/the-midwest-airlines-tug-o-wars-impact-on-customers/#comment-3932 You're right, I can't be sure. But I don't see how else it can go down. If they're really paying $16 a share for this airline, they're expecting a lot. The current operation is not worth $16 a share, so they need to make changes to make it earn its keep. If they can find a way to make the airline earn its keep by growing it and keeping the product, I'd love to be proven wrong here. I just don't see how it can happen. You’re right, I can’t be sure. But I don’t see how else it can go down. If they’re really paying $16 a share for this airline, they’re expecting a lot. The current operation is not worth $16 a share, so they need to make changes to make it earn its keep. If they can find a way to make the airline earn its keep by growing it and keeping the product, I’d love to be proven wrong here. I just don’t see how it can happen.

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