In May of this year, we reported in PlaneBusiness Banter that former Frontier Airlines’ SVP Sean Menke had purchased a home in the Denver area. We were contacted by a couple of folks we know at Frontier who expressed the opinion that they hoped this meant Menke was going to return to the airline as the new CEO. I also assumed this was probably the case.

But then a weird thing happened. Menke was named to a new position at Air Canada.

Hmmm.

But it looks like our hunches and those of the Frontier employees were on target after all.

Today it was announced that Menke will return to the airline in September as CEO.

What is so strange about all this is that, for Frontier, it’s deja vu all over again.

Menke left Frontier a couple of years ago to take a position with Air Canada. Personally, it was my belief, and still is, that Menke left because the board of directors at Frontier would not give him the CEO position.

As Frontier watchers no doubt recall, current CEO Jeff Potter did exactly the same thing. He left Frontier and became the CEO at Vanguard years ago — after he felt the airline was dragging its heels — by not naming him the CEO.

Well, what do you know?

My take on the news is that this is a good move for Frontier. I think Sean is a sharp guy. And, he has that major airline experience that Jeff was lacking. I also think he is probably the one person on the planet who knows Frontier the way he does. Overall, this is a good move for the airline — which is facing big challenges on almost every flank it has.

So remember — follow those real estate closings. Never know what you may find.

Ticker: (Nasdaq:FRNT)

Technorati Tags: airline CEOs, airlines, Frontier Airlines, Sean Menke

Looks like the assumptions about  Northwest doing a deal for Midwest were true.

Friday, AirTran’s offer for Midwest was set to officially expire, but officials then had said AirTran would wait until Monday before making a final decision on an extension or change of the offer. Or a removal of the offer.

Tonight, it looks like AirTran is out, and Northwest is in, along with some help from a familiar source — TPG.

According to a release issued late tonight, Northwest Airlines has confirmed it is a passive investor in the acquisition entity that TPG has created to pursue an acquisition of all of the outstanding shares of Midwest Air Group, Inc. at $16 per share. The bid submitted by TPG is subject to the satisfaction of “certain conditions.” Total value of the offer is roughly $400 million.

The TPG offer was presented to the Midwest Air Group board of directors today.

According to the release, NWA, which is providing financing to facilitate the transaction, will not participate in the management or control of Midwest should TPG acquire Midwest. The previously announced codeshare agreement between NWA and Midwest Airlines will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing.

And the most important part, from what we understand — Midwest CEO Tim Hoeksema gets to stay put as the head of the new privately-held entity.

If this deal goes through, and at this point, I don’t see why it won’t, this will be the second major merger strike out for AirTran and Joe Leonard. Three years ago the airline lost out to Southwest Airlines as they sought  a potential deal with ATA.

And, as expected, Joe Leonard is not going down without a fight. Today he was quoted in the Milwaukee Journal-Sentinel.

“Leonard said AirTran’s purchase of Midwest Air would have resulted in a big increase in air travel from Milwaukee’s Mitchell International Airport, as well as a major surge in local hiring for the airline.”

According to Leonard,  “Instead, the Midwest board has chosen a path that will benefit current senior management by selling out to a private equity firm and a so- called ‘passive’ investor whose involvement will surely raise antitrust concerns, casting doubt for shareholders on whether a transaction can, in fact, close,” Leonard said, referring to Northwest’s involvement.”

He continued, “Furthermore, private equity investors are laser focused on generating short-term returns and the only way to accomplish that goal is to slash costs by cutting back on service and eliminating jobs,” Leonard said. “If the Midwest board is successful in selling the company to a private equity investor, the Midwest employees should be concerned about their job security and Midwest’s customer service is sure to suffer.”

Reports tonight say a formal agreement is expected to be announced by Wednesday.

Tickers: (AMEX:MEH), (NYSE:NWA), (NYSE: AAI)

Technorati Tags: airline CEOs, airlines, AirTran, Midwest Airlines, Northwest Airlines, TPG

Midwest Air Group announced tonight that it has entered in to an agreement with TPG Capitol to sell the Milwaukee-based airline holding company for $16 per share in cash. This comes just hours after AirTran allowed its hostile tender offer to expire.
No mention was made of any other investors, such as the “passive” investor mentioned by AirTran, in Midwest’s statement, but The Milwaukee Journal Sentinel is reporting that the investment group does include Northwest Airlines.
AirTran’s offer was valued at $15.75, a mix of cash and AirTran stock. Midwest Air Group is the parent of Midwest Airlines and Skyway Airlines.
We’re still waiting for comments from Chip the Cookie, the Midwest Airlines mascot.
[Read “Private equity group to buy Midwest Air” at The Milwaukee Journal Sentinel.]