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If you can’t buy them, beat them. That appears to be AirTran Airways Inc.’s new strategy since being defeated in its efforts to take over Midwest Air Group Inc. Orlando, Fla.-based AirTran on Wednesday said it would start service from Midwest hub Milwaukee to Phoenix as well as boost flights from Milwaukee to Ft. Myers and Tampa, Fla., for the winter season.
The move gives AirTran, which also flies from Milwaukee to Atlanta, Orlando, Baltimore and Las Vegas, a sizable and growing presence in Milwaukee. The airline has a slew of new Boeing 737 jets due to arrive in the months to come, and it has been seeking out new routes beyond its saturated Atlanta hub. AirTran had hoped a deal for Midwest would provide a destination for those jets, giving the primarily East Coast airline a centrally located hub to allow it to better cover the West Coast. The company put Midwest in play with a hostile tender in December, but earlier this month it was trumped when Midwest accepted a $450 million take private offer from TPG. AirTran apparently has not given up on Milwaukee, and it could be positioning to cause headaches for Midwest’s new owners. Perhaps not coincidentally, all of AirTran’s nonstop routes out of the city also appear on Midwest’s route map. Midwest Air has built its reputation on offering a premium product at a premium price. AirTran appears to be wagering that some loyal Midwest customers will abandon the carrier for a lower fare option, boasting one-way fares as low as $96 to Florida and $129 to Phoenix. It all sets up an interesting next chapter in this long-running saga. AirTran management in pitching to Midwest shareholders warned that Milwaukee was ripe for a discounter to come in and shred Midwest’s margins, making it difficult for the company to survive as an independent. Now, AirTran will have a chance to prove it. — Lou Whiteman
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AirTran's press release Tags: airlines, AirTran Airways, Midwest Categories Deal Video
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