20-Dec-2010 4:14 PM
Southwest Airlines’ purchase of AirTran to close in 2Q2011
Analysis
Southwest Airlines stated on Friday that its planned USD1.4 billion acquisition of AirTran Airways is expected to receive Justice Department approval in 2Q2011. The airline had previously stated the agreement was likely to close in the first half.
Summary
- Southwest Airlines expects its acquisition of AirTran Airways to receive Justice Department approval in 2Q2011.
- The acquisition was previously expected to close in the first half of the year.
- Soleil Securities upgraded Southwest Airlines from "hold" to "buy" and set a price target of USD15.
- Southwest Airlines' shares rose 2.3% on Friday to close at USD12.93 per share.
- AirTran's shares gained 0.8% following the announcement.
- Allegiant's shares rose 0.3%, while JetBlue's shares declined 1.6%.
Meanwhile Soleil Securities upgraded Southwest from "hold" to "buy", with a price target of USD15. The airline's shares rose 2.3% on Friday to close at USD12.93 per share.
AirTran's shares gained 0.8%, while Allegiant rose 0.3% and JetBlue declined 1.6%.
Selected LCCs daily share price movements (% change): 17-Dec-2010
Source: Centre for Asia Pacific Aviation, Yahoo! Finance and Reuters