The Southwest-AirTran Merger in Detail

ETF Database submits: As the third quarter draws to a close, 2010 hasn’t exactly been the year full of M&A activity some analysts thought it would be, but a number of high profile marriages have helped to give the still fragile economy a boost. Already this year has witnessed successful bids for data storage firm 3Par (PAR) and McAfee (MFE) with ongoing wars for Potash Corp.

Southwest Airlines (LUV), the largest U.S. low-cost airline, has agreed to buy AirTran Holdings Inc. (AAI) for a combination of cash and Southwest shares.

YCHARTS.com submits: Most of us sane adults have gotten the idea of investing in airline stocks out of our systems. It’s an industry that provides a fabulous service to its customers, but one that destroys gobs of capital and in some years has seemed to pay out most of its cash to bankruptcy lawyers.

Stone Fox Capital submits:Typically buyout news can be very bullish for the industry and competitors of the firm bought. Potentially less focused competition or even a higher premium for stand alone operators can be very positive. In the case of the airlines, that usually isn't the case. As soon as one airline leaves, another usually is born to take their place. Despite being a long term losing industry, airlines seem to never lack for new entrants.

Jeffrey Breen submits:As the title of our new report suggests, we expect a relatively easy antitrust review for the proposed Southwest (LUV) - AirTran (AAI) merger.

Trefis submits: Southwest Airlines (NYSE:LUV) ranked fourth in Fortune’s World’s Most Admired Company list for 2011 and was also the largest domestic carrier by total passengers in 2010. [1] The carrier has gained tremendous respect and popularity for its low-cost business model and thrives on maintai

Chad Brand submits: Most people know that over the long term the airline sector has been an absolutely horrible place to invest. In fact, the current value of the publicly traded airlines is far below the amount of capital that has been invested into them, so returns in the industry have been negative for decades.

AirTran Holdings Inc. (AAI) soared 64 percent to $7.31 for the biggest advance in the R2K Index. Southwest Airlines (LUV), the nation’s largest discount carrier, announced on Monday that it had agreed to buy its smaller rival in a transaction valued at $1.4 billion in cash, or $7.69 a share.