Bull & Lifshitz, LLP announced (13-Nov-2010) an investigation into possible breaches of fiduciary duty in connection with the proposed acquisition of AirTran Holdings, Inc by entities controlled by Southwest Airlines in a cash and stock transaction valued at approximately USD3.4 billion. Under the terms of the agreement, shareholders of AirTran will receive a combination of Southwest common stock and cash valued between USD7.25-7.75 per share, depending upon the average trading price of Southwest stock for a 20 trading day period to and including three trading days prior to the closing of the merger. At least USD3.75 of the merger consideration will be in cash. The stock portion of the consideration will be 0.321 shares of Southwest common stock for each share of AirTran common stock, unless the trading price of Southwest common stock would cause the overall merger consideration to exceed USD7.75 per share (in which case the number of Southwest shares will be decreased so that the consideration equals USD7.75 per AirTran share) or would cause the overall merger consideration to be less than USD7.25 per share (in which case additional cash, Southwest shares or a combination of the two will be added so that the consideration equals USD7.25 per share). Bull & Lifshitz, LLP's investigation is focused on whether the proposed deal provides adequate value to the company’s shareholders. [more]
Law firm announces investigation of AirTran acquisition
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WOW air: the fast-growing Icelandic LCC starts new widebody services to US West Coast
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With 20 European destinations it is developing a role as a provider of low cost trans-Atlantic connecting services to sit alongside its point-to-point offering. In this respect it is providing growing competition to its larger compatriot Icelandair, which is also growing fast (and profitably).
However for now, at least, there appears to be room for both: Icelandair is not present on 12 of WOW air's European city pairs, or on three of its North American routes. Certainly the North Atlantic needs new competition, and both Icelandic airlines are helping to provide it.
Air France-KLM: long haul low cost airline could be part of new CEO's vision as French Blue enters
Air France-KLM chairman and CEO, Jean-Marc Janaillac, who took charge in Jul-2016, has talked about the possibility of launching long haul low cost operations (Bloomberg/luchtvaartnieuws.nl, 20-Sep-2016).
If Air France-KLM were to enter this segment it would be the second of Europe's big three legacy airline groups to do so, after the Lufthansa Group. Ironically, there is no long haul low cost competition to Lufthansa in Germany. By contrast, IAG faces more such competitors in the UK than either of its two major rival groups in their largest home market, but currently has no plan for such an operator.
Air France-KLM management told analysts on a conference call in May-2016 that it was sceptical about the sustainability of year-round profits for long haul low cost. However, new competition has prompted Mr Janaillac to look more closely at this market segment. Since Jul-2016 Norwegian has commenced trans-Atlantic long haul operations from Paris CDG. In addition, since Sep-2016, the new-start long haul LCC French Blue now flies on routes to the Caribbean. Mr Janaillac is expected to report on his strategic vision for Air France-KLM in early Nov-2016. Labour relations will be crucial to the group's development – not least in the area of long haul low cost.