Southwest Airlines is showing some “LUV” (that is their stock ticker symbol – some stock humor for you) for Air Tran to the tune of $1.4B. They are acquiring Air Tran which is the 8th largest discount airline. The price is a 69% premium over Air Tran’s closing price on Friday. Even Southwest stock is up today on the news which is rare in a takeover situation – normally the acquiring company goes down.
My wife and I luv Southwest. We like their low fares, we like their humor, we like their method of boarding, and we like not paying baggage fees. We are looking forward to them flying to many more locations, especially Mexico and the Caribbean.
Interesting factoid: Southwest Airlines carries more passengers in the US than any other airline. So many others must feel the same about them as we do.