Message Font: Serif | Sans-Serif
No. of Recommendations: 0
AAI (AirTran) is probably a better bet.

Diversified their network (from Atlanta and Florida in 2000 to Atlanta, Florida, Baltimore, Milwaukee and Caribbean in 2010).

Cost per Available Seat Mile (excluding fuel) is lowest in the industry (below Southwest Airlines since 2004) and lower than JetBlue's. Cost is what can make or break an airline in today's environment. Fuel is a large driver which effects all airlines similarily so margins are based more on costs ex-fuel.

EBIT margins excluding fuel hedges have been above Southwest's for several years.

AirTran can still be seen as a growth airline where Southwest has drastically slowed growth (AirTran multiple types of aircraft allowing several city sizes where Southwest has one type which limits their flexibility). AirTran has also not penetrated a lot of the larger cities where Southwest is.

AirTran's costs can be kept lower due to younger employee base (Southwest employee numbers and length of service equate to higher wages). AirTran may not be as tied to union rules (for example, being able to contract ground operations which helps maintain flexibility of going into and out of cities when profits dictate).

Large popultation base in Atlanta where Southwest has not gone into yet

Already establishing international flying where Southwest is several years away. Due to interanational agreements, many of the better markets may be at capacity when Southwest is able to establish international travel.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.