NWA making a play for Midwest?
- Thread starter Kev3188
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Kev3188
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Exactly...
Here's a blurb from the NWA employee webste:
"Northwest Joins TPG Bid for Midwest Air Group
Northwest on Sunday confirmed it is a passive investor in the acquisition entity that TPG Capital, L.P. (TPG) has created to pursue an acquisition of all of the outstanding shares of Midwest Air Group, Inc. at $16 per share. The bid submitted by TPG is subject to the satisfaction of certain conditions.
Milwaukee-based Midwest Air Group operates Midwest Airlines and Midwest Connect. The TPG offer was presented to the Midwest Air Group board of directors on August 12, 2007.
NWA, which is providing financing to facilitate the transaction, will not participate in the management or control of Midwest should TPG acquire Midwest. The previously announced codeshare agreement between NWA and Midwest Airlines will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing.
Northwest has briefed its union leadership on the transaction. The investment contemplated is consistent with all of NWA’s union obligations."
Here's a blurb from the NWA employee webste:
"Northwest Joins TPG Bid for Midwest Air Group
Northwest on Sunday confirmed it is a passive investor in the acquisition entity that TPG Capital, L.P. (TPG) has created to pursue an acquisition of all of the outstanding shares of Midwest Air Group, Inc. at $16 per share. The bid submitted by TPG is subject to the satisfaction of certain conditions.
Milwaukee-based Midwest Air Group operates Midwest Airlines and Midwest Connect. The TPG offer was presented to the Midwest Air Group board of directors on August 12, 2007.
NWA, which is providing financing to facilitate the transaction, will not participate in the management or control of Midwest should TPG acquire Midwest. The previously announced codeshare agreement between NWA and Midwest Airlines will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing.
Northwest has briefed its union leadership on the transaction. The investment contemplated is consistent with all of NWA’s union obligations."
NewHampshire Black Bears
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Kev,
I agree with you, that the best offense is a good DEFENSE.
One possible problem though.
NW would then have DC-9/A-319/A-320/A-330/EMB-190/B-717/B-737/B-747/B-757/B-787/
WAY to many A/C types
Kev3188
Veteran
You're right, my friend...
And while YX doesn't fly 737's, but they *do* have B1900's and Do328Jets (through Skyways), which is even more fleet types. I believe NWA said they would be a "silent partner" in all of this, so the questions is; what's the ultimate aim of this?
Wholly owned subsidiary?
Investment stake only?
Taking over/back MKE once and for all?
What oher synergies besides fuel purchasing would be in the mix?
Blackdog
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How about simple defense as mentioned before, keep AirTran out of their backyard. (Not in my Neighborhood!) NWA can now downsize their MKE operations with the Midwest codeshare safely in place and reallocate their resources somewhere else.
PurduePete
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Were there any Q2 profit sharing checks distributed to the employees at NW, or are they "reallocating" that money to finance the Midwest Airlines transaction?
Kev3188
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No profit sharing yet, but we did get the Performance Incentive Plan $$$ a couple of weeks ago...
They also owe us $150 after-tax( 50 per day worked) that they promised from the end of last month's operational woes.
They also owe us $150 after-tax( 50 per day worked) that they promised from the end of last month's operational woes.
groundcontrol
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So when do you expect to get this bribe money kev?
Kev3188
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The bribe $$$ should be on my check this Friday; it was supposed to be on the last one...
Profit sharing? Who knows?
Profit sharing? Who knows?
CynicalResAgent
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I don't think NW would absorb YX and if they do they'd dismantle it. With a hub in MSP and DTW does NW need a hub in MKE? Other than replacing some aging DC-9's with 717's and keeping FL out of the neighborhood I don't see the point.
Kev3188
Veteran
By the way, if anyone's interested, here a link to the SEC preliminary merger and proxy statement involving YX, NWA & the TPG group.
Looks like NWA ponied up roughly 213 million for a 47.2% stake....
Statment is here. Enjoy!
Looks like NWA ponied up roughly 213 million for a 47.2% stake....
Statment is here. Enjoy!
CSAR GYRENE
Veteran
Correct me if I'm wrong, but didnt NWA give back a control in Continental in return for a "golden note" to ensure Continental couldnt merge with anyone that NWA didnt approve? Is it possible they are trying the same thing here? Food for thought is all..........
QA4Jet-A
Veteran
That's a sticky point you make here. If NW is just an in-active partner, they should not be allowed to have the Midwest' 717s. If they do, they have now added another Fleet type. My guess would be, since NW never took advantage of purchasing 717's while the production line was open, here's a chance to grasp some newer planes and finally park some 9s and that would mean a gradual 'Take over'. I don't know how many DC-9s NW still flies but Kev will probably know. Also, NW, IMO, does not want FL near them and this is a possible reason for stepping into bed with the buying group. What you say does make sense but, does NW? NW hates FL, Always has and Always will. Same with Delta. We've been going through the usual BS in ATL since the start. I just want all of us to have jobs we can go to every day and enjoy life. I could give a rats Butt as to what color the plane is painted. <shrug> JMHO
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