Still waiting on news regarding the process agreement. Yesterday the Merger Committee sent out an update to address the effect that spiking fuel could have on the merger.
It's a legitimate issue, and one we've been talking about on the line a fair bit. Their explanation involves a lot of legal terms, but basically they say not to worry, the merger agreement doesn't allow rising fuel as a reason for Gary Kelly to back out of the deal because it affects SWA the same way it affects us.
Of course that is excellent to hear! It seems that the lynch pin of the argument is that “Material Adverse Effect” (like rising fuel prices) need to have a disproportional affect on AirTran to qualify as a reason to back out. They detail our fuel hedges, but they don't talk about SWA's hedges. I hope that was just an oversight.
What isn't an oversight is that there definitely could be something that affects us differently that SWA. Hopefully the flight attendants settle their contract soon and don't leave the rest of us swinging in the breeze ...
One thing that IS for sure is that the sooner this deal is signed sealed and delivered, the better.
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