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DATE:27/09/10
SOURCE:Air Transport Intelligence news
Southwest to acquire AirTran Airways
By Lori Ranson
Southwest is to further consolidation in the US industry through the acquisition of fellow low-fare carrier AirTran Airways.
In a definitive agreement endorsed by both the boards of both airlines, Southwest is purchasing all outstanding common stock of AirTran's parent for a combination of cash and stock.
Under the agreement each share of AirTran common stock will be exchanged for $3.75 in cash and 0.321 shares of Southwest's common stock.
Including AirTran's debt and capitalized aircraft operating leases, the transaction is valued at $3.4 billion.
Through the agreement Southwest gains key access to Washington National Airport and expands its presence in other key markets including New York LaGuardia and Boston.
It also furthers Southwest's goals of serving near international destinations through AirTran's leisure markets in the Caribbean.
Until closing Southwest and AirTran will continue to operate as separate brands.
Southwest plans to integrate AirTran's Boeing 737s and 717s into its own 737 livery and consolidating corporate functions at its Dallas headquarters.
The two carriers also plan to transition to a single operating certificate and will operate a combined fleet of 685 aircraft.
As of 30 June the combined unrestricted cash of the two airlines was $3.7 billion.
See: http://www.nytimes.com/2010/09/28/busin ... ml?_r=1&hpLe Addeur noir wrote:Southwest Airlines are reported to be buying the budget carrier Air Tran.So far,no further details available.
DATE:27/09/10
SOURCE:Air Transport Intelligence news
Southwest plans to keep AirTran’s Boeing 717 fleet
By Lori Ranson
Southwest executives have confirmed that it plans to operate AirTran's 86 Boeing 717s once its acquisition of AirTran closes and the Atlanta-hubbed carrier is folded into the Southwest brand.
Southwest today unveiled plans to acquire AirTran through a combination of cash and common stock.
Both carriers operate the 737-700, and Southwest is evaluating adding the larger -800 to its fleet.
Southwest also operates 737-300s/500s.
During a call with media to discuss the acquisition Southwest CEO Gary Kelly said the carrier has decided it wants to keep and operate the 717, and will operate the smaller aircraft in a single 117-seat configuration.
Currently AirTran operates its 117-seat 717s in a dual class offering.
Kelly acknowledges the addition of the 717 requires a different type crew rating and establishing how the aircraft is scheduled into operations.
But he believes the 86 aircraft offer enough scale and says Southwest has the ability to incorporate the aircraft into its fleet cost effectively.
"Our pilots have looked at it [the 717] and like it," Kelly states.
The aircraft will also allow Southwest to operate in markets too small to support its 737 fleet.
Southwest's chief says the carrier is not prepared to make a decision on adding the larger -800 to its fleet.
"We hope to make a decision soon," he says. Previously Southwest indicated it would decide on adding -800s in December and has negotiated a tentative deal with its flight attendants to operate the aircraft.
Commenting on the impetus to acquire AirTran Kelly states that after a tumultuous last couple of years in 2010 Southwest is finally comfortably profitable enough to strategically think about its future by examining its technology, fleet and possible acquisitions.
Today he revealed Southwest also plans to replace its reservation system.
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