about airtran
December 13, 2006
Dear AirTran Airways Crew Member:
Today we announced a proposal to merge with Midwest Airlines, a carrier based in Milwaukee, Wisconsin. While the Midwest Board of Directors has initially declined our merger offer, AirTran Airways believes this merger has such compelling benefits for all involved that we have decided to make our case directly to their Board and shareholders.
This letter to our Crew Members is to share the reasons why AirTran Airways is taking this exciting step, to outline what we believe are the key benefits of this merger to Crew Members, customers and shareholders, and to clarify what you can expect to read and see in the next several weeks.
First, this is a tremendous growth opportunity for both AirTran Airways and Midwest Airlines. This merger will grow our route map, strengthen our ability to compete with other airlines and continue to create career growth for our Crew Members – even as other airlines consolidate and cut overlapping routes. While we believe AirTran Airways can continue to grow and reward its investors and Crew Members as a stand-alone company, this merger can accelerate our growth and provide greater opportunities to the shareholders, Crew Members and customers of both AirTran Airways and Midwest Airlines.
Second, there is little overlap in our routes so the combination will deepen our presence in the East and Midwest and also speed up the expansion of our network to create a truly national carrier. MKE and ATL are both strong hubs that can be even stronger with a combined network to feed each other. This merger will create more destinations and more nonstop flights. It also creates unique fleet, marketing and purchasing efficiencies that will help us continue our low cost leadership.
Third, we believe our two companies have compatible low-cost business models and a common Boeing 717 fleet on which to build. AirTran Airways and Midwest Airlines are recognized by JD Power, Entrepreneur Magazine, Conde Nast and other surveys as industry leaders in customer service and product innovation. Both airlines have customer-driven cultures and highly motivated Crew Members that we believe will work well together.
Under the new company, all AirTran Airways Crew Members will continue to have a bright future with new opportunities for advancement and career growth. Not only do we expect continued employment for all Crew Members of both companies after a merger, we also expect total employment to grow over the next two years. As the MKE and ATL hubs grow, so will other key cities such as MCI, MCO, BWI, MDW and the rest of our expanding network.
In the next several weeks, you will see AirTran Airways leaders lay out our compelling vision and the benefits of combining our two carriers. We intend to work very hard to get this message out. As these activities move forward, we will keep you informed through letters, email and other electronic communication.
In closing, you should know that while we feel strongly about combining our two airlines, there is no guarantee that our current proposal will result in a merger agreement. Should this transaction not materialize, please be assured that AirTran Airways remains in a strong market position with a successful strategy focused on diversifying our revenue base, keeping costs low and providing friendly service to our customers. We are proud of what we have achieved to date and will continue to implement our strategy, either with Midwest Airlines or independently.
We will continue to keep you updated as events related to our proposal proceed.
| Warm regards, | |
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| Joe Leonard | Bob Fornaro |
| Chairman and Chief Executive Officer | President and Chief Operating Officer |