Cometman
Well-known member
- Joined
- Aug 2, 2009
- Posts
- 424
I wouldn't say their is no comparison. Airtran has been profitable for 8 of the last 9 years and has grown from 40 airplanes to 140 airplanes under the umbrella of the largest legacy airline hub in the world (Delta operates around 1000 flights a day out of ATL). Both Southwest and Airtran have been very successful finding their place in the domestic market.
Airtran had to make some difficult changes to the business plan last year (including slowing the growth) due to the spike in fuel prices. Those decisions put Airtran is a good position to return to profitability quickly as evidenced by 2009 producing record quarterly profits. Southwest was able to put off their changes until this year since Southwest was somewhat insulated from the higher fuel prices last year.
Either way, both airlines are strong and can coexist in the same marketplace as evidenced in BWI, MDW, and MCO and soon to be in BOS, LGA, and MKE. Southwest has an advantage of a really strong balance sheet with little debt while Airtran has some of the lowest unit costs in the industry. Southwest and Airtran will continue to chip away domestic marketshare from the legacies for many years to come either as a merged company or as independent LCCs.
You made a good point.