Merger Rumors - Is a Merger between Midwest Airlines and Air Tran Possible?

Even the biggest airlines in the United States are not immune to takeover rumors. This time, smaller players are involved, including the low cost airline Air Tran. The flight routes of these two airlines are quite different, so could these two airlines merge?

Airlines Involved
Air Tran is looking at a possible takeover bid / merge with Midwest Airlines. It is being viewed as a hostile takeover attempt.

Current Offer / Offers
Midwest Airlines rejected an offer of almost $300 million in December 2006. Air Tran has upped the ante to nearly $350 million.

Response to the Offer
Air Tran has taken out several ads in Milwaukee - the main hub city for Midwest Airlines. Currently, Midwest is holding its own and is trying to prevent any hostile takeover.

What Is Being Said about the Merger Rumors
Air Tran is based in Atlanta, and few of the airlines' routes overlap, so it could be a less painful merger than ones with larger airlines where they fly many of the same routes.

What a Merger Could Mean for Air Travelers
In this situation, a merger is feared to lower the quality of service. Midwest Airlines is a favorite with its travelers as their staff is seen as friendly and caring, and there are little perks that make it different than other competitors in the area. The two airlines are not really in direct competition with each other, thus airfare increases are not much of a threat here.