A Southwest Airlines aircraft. Currently, the airline only serves the US market; however, if they successfully purchase AirTran Airways they will gain international routes to Mexico and the Caribbean. An AirTran airplane. The company flew 23,998,000 passengers in 2009. Low-cost US airline Southwest Airlines announced Monday that it would buy its low-cost rival AirTran Airways for US$1.4 billion. The merger announcement comes just days after United Airlines sealed a merger deal with Continental Airlines. "The acquisition of AirTran represents a unique opportunity to grow Southwest Airlines' presence in key markets we don't yet serve and takes a significant step towards positioning us for future growth," Gary Kelly, CEO of Southwest, said after the merger was announced. The Southwest-AirTran deal, which awaits antitrust regulatory approval, will gain Southwest a larger US network. By merging with AirTran, Southwest will also be a strong competitor in Eastern United States cities such as New York City, New York, Charlotte, North Carolina, Atlanta, Georgia and Washington, D.C., cities that Southwest had previously not touched much. Southwest also will be going international for the first time, inheriting AirTran's Mexican and Caribbean routes. The newly merged company would keep Southwest's name and livery. Southwest will be offering AirTran stockholders US$ 7.69 per share. That's 69\% more than AirTran's Friday, September 24 closing price. However, AirTran stock shot up 62\% to $7.36 on Monday, while Southwest's stock rose more modestly to US$14.01. Delta Air Lines stock declined by 2\% on Monday, as Southwest will gain an AirTran hub at Atlanta, which is also Delta's primary hub.
A Southwest Airlines aircraft. Currently, the airline only serves the US market; however, if they successfully purchase AirTran Airways they will gain international routes to Mexico and the Caribbean. An AirTran airplane. The company flew 23,998,000 passengers in 2009. Low-cost US airline announced Monday that it would buy its low-cost rival for US$1.4 billion. The merger announcement comes just days after United Airlines sealed a merger deal with Continental Airlines. "The acquisition of AirTran represents a unique opportunity to grow Southwest Airlines' presence in key markets we don't yet serve and takes a significant step towards positioning us for future growth," Gary Kelly, CEO of Southwest, said after the merger was announced. The Southwest-AirTran deal, which awaits antitrust regulatory approval, will gain Southwest a larger US network. By merging with AirTran, Southwest will also be a strong competitor in Eastern United States cities such as New York City, New York, Charlotte, North Carolina, , Georgia and Washington, D.C., cities that Southwest had previously not touched much. Southwest also will be going international for the first time, inheriting AirTran's Mexican and Caribbean routes. The newly merged company would keep Southwest's name and livery. Southwest will be offering AirTran stockholders US$ 7.69 per share. That's 69\% more than AirTran's Friday, September 24 closing price. However, AirTran stock shot up 62\% to $7.36 on Monday, while Southwest's stock rose more modestly to US$14.01. Delta Air Lines stock declined by 2\% on Monday, as Southwest will gain an AirTran hub at Atlanta, which is also Delta's primary hub.
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AirTran Airways for US$1.4 billion. The merger announcement comes just days after United Airlines sealed a merger deal with Continental Airlines. "The acquisition of AirTran represents a unique opportunity to grow Southwest Airlines' presence in key markets we don't yet serve and takes a significant step towards positioning us for future growth," Gary Kelly, CEO of Southwest, said after the merger was announced. The Southwest-AirTran deal, which awaits antitrust regulatory approval, will gain Southwest a larger US network. By merging with AirTran, Southwest will also be a strong competitor in Eastern United States cities such as New York City, New York, Charlotte, North Carolina, Atlanta, Georgia and Washington, D.C., cities that Southwest had previously not touched much. Southwest also will be going international for the first time, inheriting AirTran's Mexican and Caribbean routes. The newly merged company would keep Southwest's name and livery. Southwest will be offering AirTran stockholders US$
for US$1.4 billion. The merger announcement comes just days after United Airlines sealed a merger deal with Continental Airlines. "The acquisition of AirTran represents a unique opportunity to grow Southwest Airlines' presence in key markets we don't yet serve and takes a significant step towards positioning us for future growth," Gary Kelly, CEO of Southwest, said after the merger was announced. The Southwest-AirTran deal, which awaits antitrust regulatory approval, will gain Southwest a larger US network. By merging with AirTran, Southwest will also be a strong competitor in Eastern United States cities such as New York City, New York, Charlotte, North Carolina, , Georgia and Washington, D.C., cities that Southwest had previously not touched much. Southwest also will be going international for the first time, inheriting AirTran's Mexican and Caribbean routes. The newly merged company would keep Southwest's name and livery. Southwest will be offering AirTran stockholders US$