Sunday, January 6, 2008

Was the cookie really saved?

Former Midwest Airlines executive Jay Sorenson wrote a compelling article in Sunday's Milwaukee Journal-Sentinel which questions whether the airline was actually saved when it was bought by TPG Capital because Northwest Airlines has a 47% stake in the deal.

It's a good point -- one that's been raised in this blog several times. The antitrust people at the United States Department of Justice need to step in and rework the deal so that Northwest stays out of Midwest's operations and has no chance of ever taking over the airline.

If not, Sorenson may be right that we'll ultimately see the cookie crumble.

1 comment:

Anonymous said...

The sad part is that Hoeksma sold the people of Milwaukee a bill of goods for the sake of his own wallet. He portrayed AirTran as a shoddy, low-quality airline and launched a PR war against AirTran IOT steer the deal toward one that would allow him to keep his job. The reality is that AirTran genuinely wanted to make MKE a hub and would have provided the competition against NWA that would have assured lower fares. The cookie is no longer the issue... the people of MKE now have much more to lose than that.