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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On 17-Mar-2017, IAG announced the launch of its newest airline brand, 'Level', which it will use to operate the group's first long haul low cost flights from Jun-2017. The launch routes will be from Barcelona to Los Angeles, Oakland, Buenos Aires and Punta Cana. It will compete head to head with Norwegian on the Los Angeles and Oakland routes.
In Dec-2016, IAG had said that it had not yet decided whether to create a new brand or to operate its planned Barcelona long haul low cost routes under one of its existing brands British Airways, Iberia or even Aer Lingus. Vueling was ruled out, although its strength at Barcelona will provide connecting feed. IAG's solution is to create Level, a new airline brand, but to operate it initially with Iberia pilots and cabin crew.
IAG has also confirmed that Level will deploy two new 314 seat Airbus A330-200s (293 economy and 21 premium economy) and will create up to 250 jobs based in Barcelona. Level, IAG's first entirely new airline brand, will also look to expand to add flights from other European cities.
Norwegian Air: 10 new North Atlantic routes enabled by new narrowbody aircraft and price stimulation
Norwegian's long anticipated new trans Atlantic routes, to be launched in summer 2017, will add five airports in the UK and Ireland and three in the US to its existing long haul network. Norwegian already operates to eight US primary airports from London Gatwick. By using new narrowbody technology Norwegian is opening trans Atlantic travel to smaller cities that could not support widebody service.
The new trans Atlantic routes, the first to be operated by its Irish subsidiary NAI after receiving US rights late in 2016, will deploy new Boeing 737-8 MAX aircraft with a longer range than existing narrowbodies, and Norwegian is the European launch customer of the type.
In total there will be 10 new routes, comprising 38 weekly flights from Edinburgh, Belfast International, Cork, Shannon and Dublin serving three secondary airports on the US east coast. These are Stewart International (SWF), Providence (PVD) and Hartford Bradley International (BDL). These US airports are small and relatively unknown in Europe, and Norwegian will have to rely on price stimulation more than it has done on existing long haul routes. Nevertheless, Norwegian is once more leading the market with this innovation.