Southwest To Take Over AirTran
September 28th, 2010 - 7:51 pm ICT by GDBy Gina Gomez
Sep 28, (THAINDIAN NEWS) The Southwest Airlines has announced a $1.4 billion plan to buy AirTran airways. The deal pending regulatory approval will allow Southwest Airlines to take over AirTran’s twice daily flights between Des Moines and Milwaukee and twice weekly flights to and fro from Orlando and will expand Southwest Airlines by 25% from 2012. Though many people are expressing themselves in a positive way towards the deal it appears to be early to comment on the issue. The take over of any company normally drives the business up provided the company being bought has sound business but in this particular scenario the actual effects of the deal will be evident perhaps only on 2012.
Some facts are clear though from the beginning itself, the Southwest Airlines will be profiting by its inclusion of new routes and 685 planes belonging to AirTran Airlines. The merger will result in the elimination of competition between them and provide a better edge to Southwest Airlines. Southwest Airlines will move into 37 cities which includes Des Moines while expanding their access in places like New York, Boston and Atlanta. This can be one of the first step towards a long term goal of the company going international and while expanding its business in the domestic regions.
There are normally fears that a merger will result in job cuts but in this particular scenario the jobs may increase and as for the existing jobs the company has promised to retain the employees though some of them may have to shift their work location. There will be increased competition between Southwest and Delta Air in Atlanta in near future.
- Southwest Airlines to buy AirTran for approximately $1.4 billion - Sep 27, 2010
- Little Turtle, Which Stopped A Plane, Given Back To Its Proprietors - Jun 27, 2010
- Southwest Airlines Planning Expansion And Offering New Schemes - Oct 23, 2010
- Couple sues airline over cockroaches - Nov 14, 2011
- Milwaukee Airport Runway Reopens After Torrential Rains Leave It Waterlogged - Jul 24, 2010
- Hundreds of flights in northeast U.S. canceled due to winter storm - Feb 05, 2010
- Makeover Of Southwest Airlines' 'Frequent Flier' Program To Be Set In Motion From March 1 - Jan 07, 2011
- Pet Turtle Makes Taxiing Plane Turn Around, PETA Demands Investigation - Jun 27, 2010
- Air India crisis - a carefully crafted design (Comment) - May 08, 2011
- Milwaukee Airport closed, as runways are flooded with water due to torrential rains - Jul 23, 2010
- IndiGo to buy 180 Airbus aircraft for $15 billion (Roundup) - Jan 12, 2011
- Air China to launch Chengdu-Mumbai direct flight - Mar 01, 2012
- Cisco to buy video software developer for $5 bn - Mar 16, 2012
- Bangkok Airways connects Bangalore and Thailand - Oct 04, 2011
- Emirates launches A-380 flights to Malaysia - Jan 02, 2012
Tags: airtran, airtran airlines, airtran airways, delta air, des moines, fears, flights, gina gomez, inclusion, job cuts, jobs, long term goal, merger, milwaukee, planes, regulatory approval, sound business, southwest airlines, work location, york boston