Wednesday, December 13, 2006

MIDWEST MERGER WOULD PRESERVE JOBS

Midwest Airlines Inc., currently headquartered in a Milwaukee suburb, is fighting off a friendly hostile takeover by AirTran Holdings Inc.

So far, it's NO DEAL. But AirTran isn't giving up.


AirTran claims that the merger would preserve jobs.

That's what they all say.
AirTran Holdings Inc.'s (AAI) proposed $290 million purchase of Midwest Air Group Inc. (MEH) would create a strong national airline - one that would guarantee jobs for virtually all Midwest employees, AirTran Chairman and Chief Executive Officr Joseph Leonard said today.

Leonard told analysts during a teleconference that the merged carrier would retain nearly all 2,100 employees at Oak Creek-based Midwest Air, corporate parent of Midwest Airlines and the Midwest Connect regional carrier. The exception would be a small number of upper management employees, he said.

The merged airline also would offer more opportunities for Midwest employees, and would grow significantly as it adds new planes, Leonard said. That would create new flight crew and mechanic positions, as well as other jobs, he said.

"We'll be hiring people and creating jobs," Leonard said, during a teleconference. "These are not low-pay, low-skilled jobs."

Orlando, Fla.-based AirTran, with a work force of 6,900 employees, has hired 2,000 employees just in the past three years, Leonard said.

Leonard also said AirTran would add more departures from Milwaukee's Mitchell International Airport, where Midwest offers 138 daily non-stop departures and controls just over 50% of the market. He suggested that fares would be lower, saying Milwaukee has not seen the "fare stimulation" that AirTran has brought to other markets.

Ooh. "Fare stimulation."

That's hard to resist.

Here is Mayor Tom "Jobs, jobs, jobs, jobs, jobs" Barrett's statement:

“I have had good conversations with executives from both Midwest Airlines and Air Tran. I intend to support an outcome that is in the best interests of the residents and travelers in southeast Wisconsin and the employees of Midwest Airlines.

We love having a hometown airline and my support for it remains strong. Midwest is a solid company and, under the leadership of Mr. Tim Hoeksema, continues to be an exemplary corporate citizen. Its presence is very important to Milwaukee.

I pledged to work with Mr. Hoeksema and Midwest Airlines so that the outcome is one that is in the best interests of the company, its employees and Milwaukee.”

I hope Midwest doesn't buckle.

A low-cost carrier like AirTran isn't a "wide leather seats, superior service, chocolate chip cookies baked onboard" sort of operation.

Barrett is sitting on the fence. He wants to support a hometown airline, yet he wants to be seen as creating or at least preserving jobs.

He insists his support for Midwest "remains strong."

That sounds weak. I get the feeling that he would be on board with a buyout and content with waiting for the ink to dry on a merger agreement.

I think Barrett would be happy to say, "Buh-bye, Midwest," if it meant that he could claim credit for growing local jobs in his struggling, mess of a city.

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