Nothing but negotiation

The Gap Partnership

Merger negotiations underway

Sales negotiations might aid completion of merger.

28 February 2011

Sales negotiations might currently be proving useful for talks between Southwest and AirTran, two low-cost US airlines.

According to Southwest's chief executive officer Gary Kelly, the deal has become increasingly important amid the backdrop of steadily rising fuel costs.

In a statement to the Milwaukee Journal Sentinel he said: "The biggest impediment to growth in the airline industry is the high cost of jet fuel."

Kelly and Robert Fornaro, chief executive officer of AirTran Holdings, spoke at Waukesha County Technical College at a hearing of the US Senate Subcommittee on Antitrust, Competition Policy and Consumer Protection.

Senator Herb Kohl convened the talks to discuss the effect of the Southwest-AirTran merger on consumers.

In an interview after the hearing he suggested he was still unsure the proposals would benefit the public.

This follows the recent news that Hypercom Corporation stockholders have approved a merger deal for the acquisition of the firm by VeriFone. The news was revealed during a meeting of stockholders by chairman of the board Norman Stout. 

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