AirTran Comments on Midwest Air Group First Quarter Earnings
26 April 2007 - 8:28PM
PR Newswire (US)
First Quarter "Fell Short of Our Expectations" According to Midwest
ORLANDO, Fla., April 26 /PRNewswire-FirstCall/ -- AirTran Holdings,
Inc. (NYSE:AAI), the parent company of AirTran Airways, today
issued the following comments in response to Midwest Air Group's
performance for the first quarter of 2007. Excluding the non-cash
adjustment to fair value of fixed fuel contracts of $19.9 million,
Midwest would have reported an operating loss of $13.2 million for
the first quarter 2007 -- $3.9 million worse than the $9.3 million
loss in the first quarter 2006 and a net loss of $11.9 million
versus $8.7 million in 2006. As a result, the adjusted loss per
common share-diluted would have been $0.51 as compared to $0.49 in
2006. Excluding the non-cash adjustment for the fuel contracts,
Midwest's adjusted net loss would have been $11.9 million for the
first quarter 2007 which is substantially greater than the $5.4
million earned by Midwest for the full year 2006. The first quarter
of 2007, according to Midwest Air Group chairman and chief
executive officer Timothy E. Hoeksema," ... fell short of our
expectations." "Midwest Air Group's business plan is broken -
Midwest is off course only 90 days into the plan," stated Joe
Leonard, AirTran's chairman and chief executive officer. "Midwest
has failed to improve their core operating profitability in the
first quarter which calls into question Midwest's ability to
execute their growth plan which revolves around new cities, higher
capacity growth, and a new higher unit cost fleet type. AirTran has
outlined a comprehensive plan that demonstrates how we would
generate greater service, economic growth and jobs in Milwaukee and
in Kansas City than the Midwest stand-alone plan." Midwest
shareholders with questions about how to tender their shares may
call AirTran's Information Agent, Innisfree M&A Incorporated,
toll-free at 877-456-3422. (Banks and Brokers may call collect at
212-750-5833). AirTran Airways operates more than 700 daily flights
to 56 destinations. For reservations or more information, visit
http://www.airtran.com/ (America Online Keyword: AirTran). This
document relates, in part, to the offer (the "Offer") by AirTran
Holdings, Inc., ("AirTran") through its wholly-owned subsidiary,
Galena Acquisition Corp. ("Galena"), to exchange each issued and
outstanding share of common stock and Series A Junior Participating
Preferred Stock and associated rights of Midwest Air Group, Inc., a
Wisconsin corporation ("Midwest"), (collectively the "Rights" and
together, the "Midwest Shares"), for consideration consisting of a
combination of cash and common stock, par value $0.001 per share
("AirTran Common Stock"), of AirTran having an aggregate value of
$15.00 per share, comprised of $9.00 in cash and 0.5842 of a share
of AirTran common stock. The Offer currently is scheduled to expire
at 12:00 Midnight, New York City time on May 16, 2007, unless
extended. AirTran and Galena have expressly reserved the right, in
their sole discretion, to extend the period of time during which
the Offer will remain open. Any extension will be announced no
later than 9:00 A.M., New York City time, on the next business day
after the previously scheduled expiration date. This document does
not constitute an offer to purchase or the solicitation of an offer
to sell which is being made only pursuant to the Offer to Exchange
and related Letter of Transmittal forming part of the registration
statement referred to below. The information required to be
disclosed by Exchange Act Rule 14d-6(d)(1) is contained in the
Prospectus and is incorporated by reference. The Offer is not being
made to and nor will tenders be accepted from or on behalf of
holders of securities of Midwest Air Group, Inc. in any
jurisdiction in which the making of the Offer or the acceptance
thereof would not comply with the laws of such jurisdiction. In
those jurisdictions in the United States where the securities, blue
sky or other laws require the Offer to be made by a licensed broker
or dealer, the Offer shall be deemed to be made on behalf of
AirTran and Galena by Morgan Stanley & Co. Incorporated and
Credit Suisse Securities (USA) LLC, or by one or more registered
broker or dealers under the laws of such jurisdiction. AirTran also
has filed a Registration Statement (No. 333-139917) with the
Securities and Exchange Commission on Form S-4 relating to the
AirTran common stock to be issued to holders of Midwest shares in
the offer (the "Registration Statement"). The terms and conditions
of the Offer are set forth in the prospectus, which is a part of
the registration statement (the "Prospectus"), and the related
Letter of Transmittal, which also are exhibits to the Schedule TO.
AirTran has announced its intent to nominate Messrs. John
Albertine, Jeffrey Erickson and Charles Kalmbach for election to
the board of directors of Midwest. AirTran has filed a preliminary
proxy statement with respect to the proposed transaction and/or
nomination of persons for election to the board of directors of
Midwest (the "Proxy Statement"). Investors and security holders are
urged to read the Registration Statement and the Proxy Statement,
as well as any other relevant documents filed with the SEC, and any
amendments or supplements to those documents, because they contain
or will contain important information. Investors and security
holders may obtain a free copy of the Registration Statement, the
Schedule TO and the Proxy Statement and amendments and supplements
to such respective documents at http://www.sec.gov/. The
Registration Statement, the Schedule TO and the Proxy Statement and
such other documents and amendments and supplements to such
respective documents may also be obtained free of charge from
AirTran by directing such request to: Richard P. Magurno, Corporate
Secretary, AirTran Holdings, Inc., 9955 AirTran Boulevard, Orlando,
Florida 32827, or to the information agent for this offering:
Innisfree M&A Incorporated, 501 Madison Avenue, New York, New
York 10022. AirTran and its wholly owned subsidiaries, Galena and
AirTran New York, LLC and their respective directors and executive
officers and each of Messrs. John Albertine, Jeffrey Erickson And
Charles Kalmbach are participants in the solicitation of proxies
from the shareholders of Midwest. Information about the directors
and executive officers of AirTran and their ownership of AirTran
stock is set forth in the proxy statement for AirTran's 2006 annual
meeting of shareholders. Information about the directors and
officers of Galena is set forth in Schedule II of the Offer to
Exchange which is incorporated by reference in the Schedule TO,
information with respect to the three nominees is set forth in
Amendment No. 10 to the Schedule TO and, in each case, will be
contained in the Proxy Statement to be mailed to the stockholders
of Midwest. Investors may obtain additional information regarding
the interests of such participants by reading the Proxy Statement.
Media Contacts: Tad Hutcheson 678.254.7442 Judy Graham-Weaver
678.254.7448 Investor Contacts: Jennifer Shotwell Or Alan Miller
Innisfree M&A Incorporated 212.750.5833 DATASOURCE: AirTran
Airways CONTACT: Tad Hutcheson, , +1-678-254-7442, or Judy
Graham-Weaver, , +1-678-254-7448, or Investor Contacts: Jennifer
Shotwell or Alan Miller, Innisfree M&A Incorporated,
+1-212-750-5833 Web site: http://www.airtran.com/
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