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Southwest's purchase of AirTran wins government approval
Posted Tuesday, Apr. 26, 2011
Southwest Airlines received government approval of its purchase of AirTran Airways on Tuesday, the last step towards completing the $1.4 billion transaction.
The deal is expected to close Monday, the Dallas-based carrier said.
The Justice Department said its mandatory antitrust investigation into the deal determined that it will not hurt competition in the airline industry.
"The merged firm will be able to offer new service on routes that neither serves today, including connecting service through Atlanta's Hartsfield-Jackson International Airport from cities currently served by Southwest to cities currently served by AirTran," the department said in a statement. Although there is some overlap in the two carriers' networks -- there are 30 cities that they both serve -- the department said it did not challenge the acquisition because of "the consumer benefits from the new service" and because the affected airports are not subject to slot or gate restrictions.
AirTran shareholders approved the deal March 23. Southwest shareholders did not vote on the merger.
When the transaction closes, Southwest will grow by 25 percent and will add service to Hartsfield-Jackson, the nation's busiest airport. It will also end AirTran's service at Dallas/Fort Worth Airport, so it does not have to give up slots at Dallas Love Field per the Wright Amendment.
The combined company will have about 43,000 employees and serve about 100 million customers each year at more than 100 airports. The fleet will have 685 aircraft, mostly Boeing 737s, but Southwest will also take on AirTran's 86 Boeing 717 aircraft.
To complete the combination of the two carriers, Southwest said it will begin working towards obtaining a single operating certificate from the Federal Aviation Administration by the first quarter of 2012.
Andrea Ahles
http://www.star-telegram.com/2011/04/26/30...of-airtran.html
Posted Tuesday, Apr. 26, 2011
Southwest Airlines received government approval of its purchase of AirTran Airways on Tuesday, the last step towards completing the $1.4 billion transaction.
The deal is expected to close Monday, the Dallas-based carrier said.
The Justice Department said its mandatory antitrust investigation into the deal determined that it will not hurt competition in the airline industry.
"The merged firm will be able to offer new service on routes that neither serves today, including connecting service through Atlanta's Hartsfield-Jackson International Airport from cities currently served by Southwest to cities currently served by AirTran," the department said in a statement. Although there is some overlap in the two carriers' networks -- there are 30 cities that they both serve -- the department said it did not challenge the acquisition because of "the consumer benefits from the new service" and because the affected airports are not subject to slot or gate restrictions.
AirTran shareholders approved the deal March 23. Southwest shareholders did not vote on the merger.
When the transaction closes, Southwest will grow by 25 percent and will add service to Hartsfield-Jackson, the nation's busiest airport. It will also end AirTran's service at Dallas/Fort Worth Airport, so it does not have to give up slots at Dallas Love Field per the Wright Amendment.
The combined company will have about 43,000 employees and serve about 100 million customers each year at more than 100 airports. The fleet will have 685 aircraft, mostly Boeing 737s, but Southwest will also take on AirTran's 86 Boeing 717 aircraft.
To complete the combination of the two carriers, Southwest said it will begin working towards obtaining a single operating certificate from the Federal Aviation Administration by the first quarter of 2012.
Andrea Ahles
http://www.star-telegram.com/2011/04/26/30...of-airtran.html
