AirTran sets shareholder vote on sale

Assuming approval, the deal would put Southwest in the Atlanta market for the first time as it takes over AirTran's flights at Hartsfield-Jackson International Airport. The two airlines might continue to operate separately for a time, but eventually the AirTran name and brand would disappear.

Shareholders representing a majority of AirTran stock must approve for the sale to fly. It is not subject to approval by Southwest shareholders. The two airlines also need antitrust clearance by the U.S. Department of Justice.

The deal gives AirTran shareholders $3.75 in cash and 0.321 shares of Southwest common stock, and values AirTran stock at $7.25 to $7.75, depending on the Southwest stock price, a substantial premium over AirTran's price when the deal was struck last September. Former AirTran shareholders will own about 6 percent of Southwest after the deal, according to the companies.