That is not the case. I did fly Midwest (Express) several times.I'm guessing you never flew Midwest.
Why was AirTran able to pursue take over Midwest, instead of the other way around?The reason many people were against the AirTran takeover was because they were worried about a loss in customer service specifically.

There is some very hard, cold realities here, surrounding the changes we are all experiencing, in the airline industry, and in the broader economy as well. By all rights, there should have been more instances, so far, where airlines went under, with passengers left holding worthless tickets. I think we need to focus on the fact that Midwest is still operating, their tickets are still valid, at least for refunds. This is a good thing, as it could have worked out differently.