Airtran why so cheap

At the time it unveiled its acquisition of AirTran, Southwest outlined three major benefits it would derive from the purchase of its smaller rival — access to Atlanta , an ability to tap small markets and instant access to international markets in Latin America and the Caribbean operated by AirTran. See related report: Southwest, AirTran plan merger, Atlanta and revenue, the story As Southwest embarked on its merger with AirTran, Delta was completing its merger integration with Northwest and United and Continental had just announced their intent to merge, so the combination of those four airlines into two also affected ASM allocation among the consolidated airlines.

It's been profitable throughout. We were able to improve on that profitability with the synergies, and clearly it was very meaningful and very helpful in us achieving our ROIC target and achieving a lifetime high with Southwest stock.

See related report: Southwest Airlines draws questions about raising return targets after posting strong 3Q results. Southwest estimated that in Apr it served 72 airports and AirTran operated from 69 airports. At the same time Southwest also gained access to Washington National through slots held by AirTran, more slots at New York LaGuardia , an expanded presence in Boston , and of course an all important entry to Atlanta. Southwest needs a solid presence in airports including LaGuardia and Washington National as it works to increase its penetration among corporate travellers.

The airline estimated it recorded double digit corporate sales growth in 3Q, which had to be driven in part by its ability to market a more attractive network to small corporate clients on tighter budgets. Questions quickly surfaced over what type of threat the nimble Southwest would pose to Delta in Atlanta and how the competitive dynamics would change. But as Southwest got deeper into the integration, it transformed Atlanta from a hub operation into a rolling schedule similar to its other top bases.

The airline concluded the hub structure that featured early morning and late evening banks was timed poorly for local traffic and business passengers. The struggling economy and higher fuel costs have forced many airlines to cut the number of seats they make available. It's a simple matter of supply and demand: They want fuller planes. Southwest spokesman Brad Hawkins says the combined airline is expecting to keep capacity flat this year.

From September to September , the number of available seats will be down 5. But that won't be uniform across the system. Some airports will see a contraction in flights. Some will gain seats. Kevin Krone, vice president of marketing, sales and distribution at Southwest, says there's no one explanation for pulling AirTran out of some airports. In some cases, for instance, Southwest had a large presence at nearby airports. In others, the routes were simply not financially sustainable.

It's a decision we take very seriously," he says. Airline analysts and airport officials point to several reasons Southwest may have exited some communities.

For one thing, Southwest also tends to fly frequently out of an airport, while AirTran was content to fly only a few days a week out of some destinations.

AirTran also often let the airports provide ground crews. Southwest has to use its own crews because of union contracts. But the airports argue that their routes were financially viable.

It takes a lot of time and effort to get them to come to your airport. Frontier has added non-stop flights to Denver. The integration gives Southwest the opportunity to serve Customers from 93 airports in the U.

Many of these jets are now listed as stored due to the current global health crisis. Data from Planespotters. Of these two, one now flies with luxury charter airline Hillwood Airways. Did you get a chance to fly with AirTran before it was bought up by Southwest? Share your experiences by leaving a comment! Deputy Editor - An experienced photographer and video producer, Chris is a journalistic natural.