As I am sure you know, Southwest is try to purchase AirTran. This is a very interesting process since we are looking at two low cost carriers becoming one and Southwest taking on a new aircraft type: the Boeing 717.
There are still a lot of questions out there about the merger and I was hoping to get some more insight while hanging out with Southwest in Dallas for their yearly media day. Unfortunately at this point there aren’t a heck of a lot more answers, but I at least have a few more pieces of information.
The big thing to remember is that Southwest and AirTran are stillÂ separateÂ companies and competitors. Even though it looks like this buy-out should go through with no issue, AirTran is not about to give up all their secrets until the deal is final. This doesn’t mean that Southwest isn’t working hard already, they just don’t have all the answers right now. Southwest currently has 30 different teams in seven different categories to prepare for the new largerÂ company.
The addition of the Boeing 717 to Southwest’s all Boeing 737 fleet is something thatÂ definitelyÂ piques my curiosity. Southwest stated they feel this will be one of the smoothest transitions. AirTran already has a good system with their 717 and 737 aircraft and they plan to keep AirTran’s current system of organizing the different planes.
When asked about the Boeing 717 and Boeing 737-500, which are designed to serve similar markets, Southwest stated that the 737-500’s will be coming off lease in 2013-2015. At that time, they will want to have a newer small aircraft toÂ replaceÂ them. They made it sound like the Boeing 717 would do thatÂ perfectly, but I am not so sure. I wonder if the Boeing 717 is the right aircraft type to provide smaller markets. It seems it might be beneficial for Southwest to look at not being an “all Boeing” airline and start looking at Bombardier C-series aircraft.
Another big interest is Southwest being able to start flying out of Atlanta (ATL). They seem very excited to get AirTran’s slots and are already planning to serve at least 24 new destinations from ATL that AirTran doesn’t currently serve. Southwest stated they aren’t looking to directly complete with any airlines in ATL (aka Delta), but am guessing there is more talk of competition behind closed doors. Southwest explained they hope they could offer airfares as much as 40% lower to ATL than the competition (aka Delta). Now that sounds likeÂ competitiveÂ talk to me. It looks like ATL will become quite important to Southwest. They stated that Atlanta might quickly become the largest city in their network, flying up to 2,000,000 passengers to the airport.
Some media voiced their concern about loyal AirTran passengers who are used to Business Class, Wi-Fi on all their flights and assigned seats. This is a big change to transition to all economy, Wi-Fi on some aircraft (will be all by mid-2013) and open seating. Southwest didn’t seem too concerned. They stated they know there are quite a few loyal Southwest passengers who would love to fly them into ATL, but just can’t do it right now. They also plan to educate fliers to promote Southwest’s unique brand of service.
Southwest stated that they aren’t looking to eliminate AirTran with the buy out, but that they hope to learn from them in every way they can to make a bigger and better airline. Â With Southwest announcing they will be flying into larger airports like Newark on top of buying out AirTran, it is anyone’s guess what Southwest might do next. There was talk of flying longer distances possibly Hawaii (which was mentioned half a dozen times), South America and more. I say… game on.
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