The following
interview with Gary Kelly in
Business Traveler News should be of interest to Lonestar and the other members of the "Flat Earth Society" who keep asking "What does AirTran bring?" and fantasize about a separate 717 operation. Here is an excerpt:
BTN: You said you see a few dozen cities where you can expand. Is that independent of AirTran?
Kelly: I think it is, in the sense that after almost 40 years we served just 72 cities. With or without AirTran, we have all these additional cities that we'd consider.
The point is that AirTran improves the prospects of adding those new cities faster and more profitably. If you think about Atlanta as an example, they've already got that business up and running for us at 200 flights a day. I'm not sure, absent the AirTran deal, when we might add Atlanta—and it could be never.
The other thing that AirTran does is that we've got the [Boeing] 737-700 sweet spot in our fleet. We're going to augment that with a bigger airplane, and we're also going to augment that with a smaller airplane for the sole purpose of serving smaller communities with less frequency. That is a market that we had been unable to crack, if for no other reason than we felt like we didn't have the right airplane for it, and it's really tough to take that first step. It takes a lot of effort to bring a new aircraft type onto the property. By definition, you're only going to have a handful of airplanes, and in the beginning it only provides some incremental contribution at best.
Here, we're stepping into a business: They've got it up and running, they've got 86 airplanes, and they've already plowed that ground. We can take what they've got, put the Southwest brand on it, plug it into our much larger network, then grow it from there.
AirTran does a number of different things for us and that's why we think it's such a compelling opportunity.