Just thinking
Well-known member
- Joined
- Oct 6, 2005
- Posts
- 348
Here are some facts for you..............
Sept 27, 2010
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.
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.
May 2011
Another milestone of the AirTran acquisition is the abandonment of one of Southwest's cardinal rules replicated the world over by successful and unsuccessful copycat carriers - keep it simple by operating a single fleet type. Almost immediately after Southwest revealed its intent to acquire AirTran, Kelly and the Southwest team fielded a barrage of questions over the fate of AirTran's 88 117-seat Boeing 717s.
Yes, Kelly declared, Southwest would keep the smaller aircraft and remains excited over the small-city prospects those aircraft open up to Southwest, which has for the past five years concentrated much effort on legacy-dominated markets of Denver, Minneapolis, San Francisco, New York LaGuardia and, most recently, Newark. Kelly admits Southwest needs an aircraft the size of the 717 to grow into markets that cannot support the current mainstay of the Southwest fleet, the 137-seat Boeing 737-700.
"As we stand today, it's difficult to muster up the effort to make one small city work, because it is so small and it just requires a lot of attention," he explains. "In this particular case AirTran will bring us several dozen cities that are up and running, generating revenue and profits. So it is now worth the management effort to make that fit into the Southwest brand and Southwest culture." Kelly believes there are several dozen additional small cities a combined Southwest-AirTran could grow into, and while the company now has the equipment to penetrate those cities, he admits Southwest will need to focus its attention at some point on a 717 replacement. Citing the size of the 717 fleet Southwest gains from acquiring AirTran, Kelly says clearly that is too large a number "for that not to be a question. So we're going to have to figure out what the successor aircraft will be". Ideally, it is a conversation Southwest would like to have with its lone aircraft supplier Boeing, but Kelly says the airframer has not expressed any real interest in pursing the market for that sized aircraft.
Aug 2011
Southwest Airlines is "happy to fly" the fleet of Boeing 717s that are operated by its AirTran subsidiary, but is planning its future fleet needs around the Boeing 737. Chief executive officer Gary Kelly said yesterday that "we don't see a reason to keep the 717s longer than we have to, or find a unique replacement for the 717 that is anything other than the 737". Kelly noted that Southwest has 717 lease commitments through 2024. According to a Southwest filing made with US regulators today, 88 717s are in the carrier's fleet, 80 of which are leased. "We have broad discussions underway with Boeing on a number of issues, and at this point we don't see a reason why we would want to have a different aircraft other than the 737," he added. Boeing Capital Corporation is a major lessor of 717s to AirTran, according to Flightglobal's ACAS database. According to a Boeing Capital filing with US regulators, AirTran represented 21% of its revenue for the first half of 2011.
When Southwest's acquisition of AirTran was originally announced last September, Kelly said Southwest was "pleased to have the 717" and that the aircraft could be utilised to serve smaller markets. Kelly also mentioned that the aircraft was "very cost effective".
Sept 27, 2010
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.
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.
May 2011
Another milestone of the AirTran acquisition is the abandonment of one of Southwest's cardinal rules replicated the world over by successful and unsuccessful copycat carriers - keep it simple by operating a single fleet type. Almost immediately after Southwest revealed its intent to acquire AirTran, Kelly and the Southwest team fielded a barrage of questions over the fate of AirTran's 88 117-seat Boeing 717s.
Yes, Kelly declared, Southwest would keep the smaller aircraft and remains excited over the small-city prospects those aircraft open up to Southwest, which has for the past five years concentrated much effort on legacy-dominated markets of Denver, Minneapolis, San Francisco, New York LaGuardia and, most recently, Newark. Kelly admits Southwest needs an aircraft the size of the 717 to grow into markets that cannot support the current mainstay of the Southwest fleet, the 137-seat Boeing 737-700.
"As we stand today, it's difficult to muster up the effort to make one small city work, because it is so small and it just requires a lot of attention," he explains. "In this particular case AirTran will bring us several dozen cities that are up and running, generating revenue and profits. So it is now worth the management effort to make that fit into the Southwest brand and Southwest culture." Kelly believes there are several dozen additional small cities a combined Southwest-AirTran could grow into, and while the company now has the equipment to penetrate those cities, he admits Southwest will need to focus its attention at some point on a 717 replacement. Citing the size of the 717 fleet Southwest gains from acquiring AirTran, Kelly says clearly that is too large a number "for that not to be a question. So we're going to have to figure out what the successor aircraft will be". Ideally, it is a conversation Southwest would like to have with its lone aircraft supplier Boeing, but Kelly says the airframer has not expressed any real interest in pursing the market for that sized aircraft.
Aug 2011
Southwest Airlines is "happy to fly" the fleet of Boeing 717s that are operated by its AirTran subsidiary, but is planning its future fleet needs around the Boeing 737. Chief executive officer Gary Kelly said yesterday that "we don't see a reason to keep the 717s longer than we have to, or find a unique replacement for the 717 that is anything other than the 737". Kelly noted that Southwest has 717 lease commitments through 2024. According to a Southwest filing made with US regulators today, 88 717s are in the carrier's fleet, 80 of which are leased. "We have broad discussions underway with Boeing on a number of issues, and at this point we don't see a reason why we would want to have a different aircraft other than the 737," he added. Boeing Capital Corporation is a major lessor of 717s to AirTran, according to Flightglobal's ACAS database. According to a Boeing Capital filing with US regulators, AirTran represented 21% of its revenue for the first half of 2011.
When Southwest's acquisition of AirTran was originally announced last September, Kelly said Southwest was "pleased to have the 717" and that the aircraft could be utilised to serve smaller markets. Kelly also mentioned that the aircraft was "very cost effective".
