Southwest Airlines Co.'s merger with AirTran Holdings Inc. will probably take place in the second quarter of 2011, Southwest told its employees Friday.
Southwest and AirTran officials previously predicted the deal would close in the first half of 2011, and AirTran chairman and chief executive Bob Fornaro had predicted a March closing when he spoke to his employees in early October.
But Southwest senior vice president Jeff Lamb, who heads Southwest's integration team, said Friday the closing will probably take a little longer. The Department of Justice is reviewing the deal for antitrust issues, and AirTran shareholders must vote on the deal, valued at $1.4 billion in cash and stock and $2 billion of assumed debt.
"At this point, we have a little clearer picture of the timeframe, and it appears likely that closing will occur in the second quarter of 2011, assuming all government approvals and clearances are received by that time," Lamb said on a Southwest employee website.
Lamb acknowledged that AirTran employees may be anxious about their role in the merged airline, but he said they probably won't go through any quick changes.
"We anticipate that it will be several months after closing before any physical changes are made in job locations, and likely that the majority of AirTran crew members will continue in their current location through much, if not all, of 2011," Lamb wrote.