AirTran Airways hosts what could be its last annual shareholders' meeting Wednesday, as the Orlando-based airline puts its plan to join forces with Southwest Airlines to a vote.
AirTran shareholders are to gather in the Marriott Orlando Airport Hotel to vote on the takeover by Dallas-based Southwest, announced last September. A majority of AirTran's eligible shareholders must approve the deal for the merger to move forward.
AirTran said Tuesday it "would be inappropriate to speculate on the vote." The carrier's board of directors has unanimously urged shareholders to approve the deal, which offered a hefty premium on the company's stock price at the time the merger was announced.
Wednesday's vote is a crucial step in the acquisition process — but not the final one. The two airlines still need to obtain the approval of U.S. government regulators before they can operate as one carrier.
Raw Video: Crashed U.S. fighter jet
As part of the agreement, AirTran stockholders would receive a combination of cash and Southwest stock valued at between $7.25 and $7.75 for each share of their AirTran common, depending on Southwest's average share price prior to the closing of the merger.
In addition to the financial considerations, AirTran's board cited the risks of continuing as a standalone carrier in a consolidating industry — with no other realistic merger partners — as a reason for moving ahead with the deal, according to the proxy distributed to shareholders in February.
One industry expert predicted smooth sailing for Wednesday's vote, saying the deal provides a "long-term positive" for both companies.
"It should be a very simple vote," said Mike Miller, vice president of strategy with the American Aviation Institute. "These types of votes — you'll hear opposition long before the vote occurs."
Scheduled picketing by AirTran flight attendants is not likely to materialize. AirTran announced Tuesday evening that it has reached a tentative, two-year agreement with its flight-attendants union. If ratified by the employees, the new agreement would take effect May 1.
In addition to approvals from AirTran shareholders and regulators, AirTran and Southwest may also need to resolve several lawsuits challenging the merger after it was announced. In a federal filing last month, AirTran said it considered the suits "without merit."
AirTran shareholders are to gather in the Marriott Orlando Airport Hotel to vote on the takeover by Dallas-based Southwest, announced last September. A majority of AirTran's eligible shareholders must approve the deal for the merger to move forward.
AirTran said Tuesday it "would be inappropriate to speculate on the vote." The carrier's board of directors has unanimously urged shareholders to approve the deal, which offered a hefty premium on the company's stock price at the time the merger was announced.
Wednesday's vote is a crucial step in the acquisition process — but not the final one. The two airlines still need to obtain the approval of U.S. government regulators before they can operate as one carrier.
Raw Video: Crashed U.S. fighter jet
As part of the agreement, AirTran stockholders would receive a combination of cash and Southwest stock valued at between $7.25 and $7.75 for each share of their AirTran common, depending on Southwest's average share price prior to the closing of the merger.
In addition to the financial considerations, AirTran's board cited the risks of continuing as a standalone carrier in a consolidating industry — with no other realistic merger partners — as a reason for moving ahead with the deal, according to the proxy distributed to shareholders in February.
One industry expert predicted smooth sailing for Wednesday's vote, saying the deal provides a "long-term positive" for both companies.
"It should be a very simple vote," said Mike Miller, vice president of strategy with the American Aviation Institute. "These types of votes — you'll hear opposition long before the vote occurs."
Scheduled picketing by AirTran flight attendants is not likely to materialize. AirTran announced Tuesday evening that it has reached a tentative, two-year agreement with its flight-attendants union. If ratified by the employees, the new agreement would take effect May 1.
In addition to approvals from AirTran shareholders and regulators, AirTran and Southwest may also need to resolve several lawsuits challenging the merger after it was announced. In a federal filing last month, AirTran said it considered the suits "without merit."
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