Midwest Holds to Stand-Alone Policy

In the wake of another offer by AirTran (AAI), Midwest Airlines (MEH) outlined its strategy to maximize shareholder value as a stand-along company, last week. The move came in the wake of a new $345 million in cash and stock offer by AirTran, upping its offer from the $290 million proposed last month. AirTran, which is making the offer through its wholly owned subsidiary Galena Acquisition Corp, is trying to play Midwest Airline’s shareholders against the Milwaukee-based airline. Midwest’s plan calls for a 15 percent increase in capacity this year which will average 10 percent per year over the next three years and provide improved levels of profitability which further enhancing its service. For a complete analysis including the profitsit expects to make from its new SkyWest operation see the January 15 issue of Regional Aviation News.