Bulletin: U.S. Dept. of Justice Clears Southwest Airlines Co.?AirTran Holdings Inc. Merger; Ratings On Both Remain On CreditWatch
- Language: English
- Published: April 2011
- Region: United States
Standard & Poor's Ratings Services' ratings on Dallas-based Southwest Airlines Co. reflect its strong competitive position in the markets it serves, relatively low operating costs, and consistent annual profitability, even during industry downturns. These factors mitigate, to a large extent, the high-risk and cyclical nature of the airline industry and exposure to high fuel prices (despite the significant levels of fuel hedging). The $3.2 billion May 2, 2011 acquisition of AirTran Holdings Inc. (parent of low-cost airline AirTran Airways Inc.), included the assumption of AirTran's roughly $3 billion of debt and leases. This will weaken Southwest's financial profile somewhat, but we expect it to remain the strongest among U.S. airlines. The acquisition was funded through equity issuance of $523 million...
Companies mentioned in this report are: Southwest Airlines Co.,AirTran Holdings Inc.
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Southwest Airlines Co.,AirTran Holdings Inc.