Airtran — Midwest Air Group — Merger or Acquisition (June 2007)
18 slides from Airtran's merger presentation, Jun 5, 2007
Slide 1: June 5, 2007
Exhibit (a)(56) June 5, 2007 1
Slide 2: Safe Harbor: Forward Looking Information
Safe Harbor Forward Looking Information Certain of the statements contained herein should be considered “forward-looking statements,” including, except in connection with the Offer (as defined below) within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking st
Slide 3: Safe Harbor: Additional Information
Safe Harbor Additional Information This document relates, in part, to the offer (the “Offer”) by AirTran Holdings, Inc., ("AirTran") through its wholly-owned subsidiary, Galena Acquisition Corp. ("Galena"), to exchange each issued and outstanding share of common stock and Series A Junior Participati
Slide 4: What Has Changed In The Past Month?
What Has Changed In The Past Month? Unequivocal shareholder support — Over 56% of shares were tendered — 61% of non-management shareholders th — Tender extended to June 8 — Midwest calls results a “straw poll” Midwest has unveiled updates to their strategic/restructuring plan — Transition will take
Slide 5: AirTran's Offer To Midwest Shareholders
AirTran’s Offer To Midwest Shareholders Offer Price Represents: $16.10 per share as of June 4, 2007 Per Share Consideration: $9.00 in cash; 0.5842 shares of AAI Stock Premium: 91% to 30 Day Avg. (1) 65% to day prior to announcement (12/12/06) Conditions: Tender of a majority of Midwest shares on ful
Slide 6: AirTran's Plan For A Combined Carrier
AirTran’s Plan For A Combined Carrier Greater efficiencies — With unit costs significantly lower than current MEH levels Increased service in both Milwaukee and Kansas City — Addition of at least 22 aircraft — Service to nearly 30 new cities — Additional flights in many existing routes Over 1,100 ne
Slide 7: Midwest Lacks Resources To Grow Successfully
Midwest Lacks Resources To Grow Successfully Network — Highly concentrated with a single hub and extremely vulnerable — A regional version of a legacy airline Fleet — B717 lacks national range / MD80s are inefficient — 50 seat regional jets are a poor match for low cost competition (e.g. Independenc
Slide 8: MEH May 2007 Strategic Plan Update - Marginal Changes To A Survival Strategy
MEH May 2007 Strategic Plan Update - Marginal Changes To A Survival Strategy Company has been in transition since 9/11 and is again asking investors to wait until 2009 to complete the transition Largely conceptual, with few firm details — Still unable to project 2007 contributions despite optimistic
Slide 9: Despite Recent Strategic Initiatives Costs Are Still Not Competitive
Despite Recent Strategic Initiatives Costs Are Still Not Competitive Non-Fuel Unit Costs at 652 Miles for 2006 (cents) 11 10 9 AAI 34% AAI 26% lower 8 lower 7 6 Proposed Current New Cost Cost * Excludes fuel and special items 9
Slide 10: Midwest Guidance Lowered By ±20% Within Weeks Of Providing Guidance
Midwest Guidance Lowered By ± 20% Within Weeks Of Providing Guidance ($) “We’re probably in the strongest position we’ve ever been in from a 2.00 competitive point of view in terms of low costs and good service. And that, I think, is the secret for success going forward.” At Least >$1.70 Tim Hoeksem
Slide 11: The Midwest Response To The Offer
The Midwest Response To The Offer All overtures to Midwest’s management, board, & financial advisors to expand upon the merits of the combination have been rejected out of hand Even after Midwest shareholders agreed to tender over 56% of Midwest shares to AirTran (over 60% of non management / board
Slide 12: Leading Governance Advisors Agree
Leading Governance Advisors Agree Both ISS and Glass Lewis recommend a change to MEH directors Glass Lewis noted: “We find it concerning that the board continues to ignore shareholder sentiment. Furthermore, considering that management recently lowered its full year earnings estimates, we believe th
Slide 13: An Independent Voice On Midwest's Board
An Independent Voice On Midwest’s Board John Albertine Jeff Erickson Charles Kalmbach Chairman, CEO & Founder of Current Director of Atlas Air Vice Chairman of The Albertine Enterprises Worldwide Holdings University Medical Center at Principal & Founder of JJ&B, Former President & CEO of Princeton U
Slide 14: Midwest Trading Performance Post-Offer Vastly Different From Its Peers
Midwest Trading Performance Post-Offer Vastly Different From Its Peers On 12/12/06, the day prior to announcement, Midwest’s stock closed at $9.08 per share — 30 day average prior to the date of the original 10/20/06 offer was $8.21 In the two months since announcement, the AMEX Airline Index is dow
Slide 15: What Should Investors Do?
What Should Investors Do? th Tender your shares by June 8 Contact Midwest’s Board of Directors Send letters to Midwest’s Board / Management th Vote for the Alternate Board Slate by June 14 15
Slide 16: Appendix
Appendix Clirlran.com
Slide 17: Combined Carrier Will Have A Well Positioned Network
Combined Carrier Will Have A Well Positioned Network Seattle Duluth Marquette Iron Mountain Ironwood Escanaba Portland Rhinelander Minneapolis Green Bay Manistee Toronto Muskegon Grand Rapids Rochester Boston Appleton Mosinee Buffalo Newburgh Flint Milwaukee Detroit White Plains Hartford Cleveland N
Slide 18: Midwest Airlines Revenue Remains Concentrated
Midwest Airlines Revenue Remains Concentrated Midwest top 10 daily revenue markets in 2006 Routes Distance Avg. Fare % of Daily Revenue Cumulative % Kansas City-New York 1,108 $175 5.0% 5.0% Milwaukee-New York 738 161 4.9% 9.9% Milwaukee-Las Vegas 1,524 131 4.9% 14.9% Milwaukee-Orlando 1,066 117 3.7
Midwest Air Group — Merger or Acquisition (June 2007) on 6ix