Midwest Airlines and Northwest signed a memorandum of understanding for the two to become code-sharing partners, expanding the carriers’ networks by 250 city pairs and more than 1,000 new flight options. Midwest said the new agreement was the next step in its year-long roll out of its 2007 growth plan and noted it was expected to enhance the value of the carrier for shareholders
Meanwhile, As AirTran crowed about shareholders agreeing to tender 13.9 million shares to its acquisition company, representing a 56.6 percent stake, Midwest stated that ownership has not changed given the requirement for several significant actions needed by the Midwest board for those conditions to be satisfied, including waiving the provisions of Wisconsin law that protect Wisconsin corporations from hostile takeovers. AirTran said it is extending its latest tender offer of $15 per share until June 8. At the same time a major shareholder, Octavian Advisors, LP, called on the board to open talks with AirTran. The move by shareholders, said the alternative investment firm, was a “clear indication of the desire of Midwest's owners for the board of directors to immediately engage in productive and good faith negotiations to effectuate a transaction.” For a complete report on both stories see the May 21 issue of Regional Aviation News.