Southwest Airlines has agreed to buy rival AirTran in a deal that values the Florida-based low-cost airline at $3.4 billion. Southwest’s cash and stock deal offer amounts to $7.69 a share, a 69% premium to the airline’s closing price on Sept 24, which value AirTran’s equity at $1.4 billion. Including AirTran’s debt and aircraft leases, the value of the transaction is $3.4 billion. In the year to June 30, Southwest posted revenues of $11.2 billion, while AirTran posted revenues of $2.5 billion during the same period. Together, the companies will employ about 43,000 with 685 aircraft on the books. The
This content is restricted to site members.
If you are an existing user, please login below.
New users may register below.