Southwest Airlines To Buy Discount Rival AirTran

[mahatmakanejeeves]

Source: The Wall Street Journal.

SEPTEMBER 27, 2010, 8:18 A.M. ET

By Doug Cameron and Tess Stynes
Of DOW JONES NEWSWIRES

Southwest Airlines Co. (LUV) on Monday announced plans to buy discount rival AirTran Holdings Inc. (AAI) in a move that would revive its stalled international expansion and intensify pressure on network carriers on the U.S. East Coast.

The definitive agreement marks the first combination between major U.S. low-cost carriers and marks only the second large acquisition by Southwest, the country's largest carrier of domestic passengers.

Southwest's business model has changed in recent years as it focused more attention on larger cities and sought access to international markets and pacts with other airlines. However, growth has been trimmed during the recession, and some of Southwest's expansion efforts have faltered.

Acquiring AirTran would provide access to the Caribbean and Mexico and provide a tougher challenge for network carriers, notably those such as Delta Air Lines Inc. (DAL) and US Airways Group Inc. (LCC) with a large East Coast presence.

-By Doug Cameron and Tess Stynes, Dow Jones Newswires; 312-750-4135; [e-mail]

Read more: http://online.wsj.com/article/BT-CO-20100927-705839.html

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Air Tran is the successor to the old ValuJet. I flew from Atlanta to Dulles once on ValuJet. Back then, you had to know of its existence if you wanted to fly on it. Since it paid travel agents either nothing or next to it for booking a flight, travel agents never mentioned it when offering suggestions for flights. The company's worth plummeted following a disastrous crash into the Everglades.

ValuJet Flight 592

[A Physicist]

1. Jerry Springer Show

Based on my own experiences I refer to Southwest as the official airline of the Jerry Springer Show. Do they still do cattle call seating? If so, spare me and I hope they don't do the same thing to AirTran.

[liberal N proud]

3. It is still free for all once on the plane but boarding is much better

Now your boarding pass has a number on it based on your check-in time. They have poles at the gate and you line up at the pole corresponding to your number. The numbers on the poles are in increments of 30.

Each poll gets on sequentially

[nyy1998]

5. liberan n proud is right, they changed for the better, and the service is still good, and

checked baggage is still free. And they still give pretzels/peanuts and a drink. I'd fly Southwest any day over AirTran or the other major airlines(AA, United, Delta, etc).

[KeepItReal]

6. Continental gives everyone actual meals at mealtime and beverages in coach

Connie was good for sandwiches (hot turkey dogs, cheeseburgers, etc) and non-alcoholic beverages in coach as part of the fare.

They say they are cutting back on the food service, though, so the Continental/United merger is gonna suck on that note.

[Jack_DeLeon]

7. yea but that meal isnt worth the price and you have to pay for luggage.

poorer people like myself would prefer to buy food of our choice when we land than to pay a couple hundred extra.

[KeepItReal]

8. I'm not happy with their baggage policy either. Connie sold out on that one.

Those baggage fees really should be priced into the ticket instead of jacking people for dollars at the check in counter.

(Full disclosure: I'm a frequent flyer on Continental, so they don't charge me bag fees now. I'm gonna lose my status next year, so I'll be shelling out $ just like everyone else, I guess.)

[nyy1998]

9. That's true, Continential has stepped up recently.

I was impressed with their services.

[PacerLJ35]

11. Southwest is one of the better airlines in the US

I only fly them if I can. They have good customer service, they don't nickel and dime you for everything, and their fares are still very competitive. Also, having several friends that work for SWA, they are a very good company to work for, and are now among the best paid airline pilots in the industry.

[pasto76]

2. too bad ATA was a decent airline

although I havent flown in about 3 years. My last experience was deplorable, and left me my wife and then 3 year old stranded at indianapolis.

They even tried to split us up the next day...and have our three year old daughter sit 5 rows away by herself. As a died in the wool democrat I realize how many jobs are tied to the airline....however in some mystical world where they can all be spared, I would love to see the airline industry collapse.

[PacerLJ35]

10. Are you talking about ATA or AirTran? Two different airlines

ATA was based out of KIND and went bust a few years ago. AirTran is based out of KATL and is still in operation.

[KeepItReal]

4. Southwest finally gets to fly into ATL

:-)

[d_r]

12. on the one hand

maybe it will be better with southwest flights out of atl. On the other hand, it was sort of a strategy to compare fares from nashville on swa and from atl on airtran, and since they won't be competing with each other I can't think that it will help fare prices for anybody.

My claim to fame. I was on the very last valujet flight. It was from miami to atlanta. They closed while we were in the air. We had no idea. When we got off the flight the press was there. I got interviewed for npr, lol."How does it feel to be on the last flight?" "I didn't know I was until you just told me."