AirTran Airways A+ Rewards - Airtran leaving TYS, MIA, BMI, CRW, IAD effective June 2012

Not necessarily a surprise, but Airtran announced it will be leaving several cities in June 2012, including my home airport of BMI.

Note that IAD will maintain Southwest service.

http://pressroom.airtran.com/phoenix.zhtml?c=201565&p=irol-newsArticle&ID=1629590&highlight=

I will also miss their service out of BMI. That brings the airport to only 2 airlines...I really thought their strong loads out of BMI would keep them around, but I also understand the decision.

I currently drive right past BMI to get to Midway to fly WN so I'm very disappointed by the news. I was hoping to cut two hours each way off my commute to the airport.

I'm shocked by this. Due to the strong numbers, I thought there was a good chance of WN continuing service to some extent out of BMI. But then again, maybe that was just my hometown pride getting in the way. What a huge loss for BMI and Central Illinois. Say hello to some pretty hefty fare increases out of BMI!

Quoting Mike Boyd on WN's decision to end FL service at BMI:

“This hurts all of Central Illinois,” said Mike Boyd, a Colorado-based airline consultant who has worked with CIRA. “They’re (Southwest) missing an opportunity.”

Well said.

I'll be disappointing for me. I wasn't aware of FL is pulling out IAD, MIA, CRW and BMI completely. Can WN will expecting to announcement to MIA? Can they takeover by replaced FL? I'm was shocked what happened of FL has been discontinued it.

Can WN will expecting to announcement to MIA? Can they takeover by replaced FL?

I would have thought WN could have done something with MIA, but this announcement seems to indicate otherwise. It really doesn't make sense to announce you are leaving the announce WN as starting? They are pretty strong at FLL, so maybe they don't feel they need a MIA presence.

Ultimately, it looks like WN bought FL for two main purposes

1. Gain access / more access into LGA, DCA, and ATL.
2. Get about 100 737 airframes and the associated crews

I think everything else that FL brought to the table (717's, MKE Hub, midsized Midwest and mid Atlantic markets) WN see's as expandable. I am guessing this may be the first of many announcements of cities being dropped.

I think we might still see a curve ball re: WN in MIA. Keep in mind that the FL service in MIA is about as token as it could be so in a way it makes more sense for WN to make a full WN station if it's going to stay. Wishful thinking I suppose as MIA was one of the ones I wanted to see stay.

By next June, they expect have their single operating ticket, right?

Why bother with the "wholly owned subsidiary" emphasis (x2) and promotion of assigned seating, GoGo on every flight and Business Class at the close?

"AirTran Airways is a wholly owned subsidiary of Southwest Airlines Co. and has been ranked the top airline in the Airline Quality Rating study twice in the past four years. AirTran offers Gogo Inflight Internet connectivity and coast-to-coast service on North America's newest all-Boeing fleet. The airline's low-cost, high-quality product also includes assigned seating, and Business Class on every flight."

Ultimately, it looks like WN bought FL for two main purposes

1. Gain access / more access into LGA, DCA, and ATL.
2. Get about 100 737 airframes and the associated crews


In far less time than WN took/will take with FL deal negotiation, due diligence, regulatory approvals, and integration, WN could easily have gotten 100 incremental aircraft from Boeing or lease companies. Further, looking back a couple of years WN has been paying people to retire.

In far less time than WN took/will take with FL deal negotiation, due diligence, regulatory approvals, and integration, WN could easily have gotten 100 incremental aircraft from Boeing or lease companies. Further, looking back a couple of years WN has been paying people to retire.

Tru, dat.

But how would shareholders and lead executives have cashed out?

Tru, dat.

But how would shareholders and lead executives have cashed out?

Your question seems to address AirTran's execs and shareholders, not those of FL. I can't say I've followed it closely, but I don't recall lots of WN execs departing with golden parachutes triggered by the FL acquisition.

I don't recall lots of WN execs departing with golden parachutes triggered by the FL acquisition.

I don't either. On the other hand, Gary Kelly's compensation last year more than doubled, but it wasn't all FL acquisition. AirTran CEO Bob Fornaro's holdings jumped nearly $2.7 million, or roughly 90 percent. For departing EVP Stephen Kolski, the personal merger benefits (http://www.ajc.com/business/airtran-exec-leaving-amid-876244.html) were reportedly $1.5 million.

And so on.

The value of AirTran executives’ and directors’ holdings jumped about $7.8 million on Monday after Southwest announced its $1.4 billion deal, which offered AirTran shareholders a combination of cash and Southwest stock that was worth $7.69 per AirTran share at the end of the day. AirTran’s shares were worth $4.55 the Friday before the deal was announced.

Shareholders of Orlando-based AirTran, which has its largest hub in Atlanta, would get roughly a 70 percent gain under Southwest’s offer, based on the value of Monday’s stock-and-cash offer.

AJC [10/1/2010] (http://www.ajc.com/business/airtran-executives-could-make-651803.html)

I think we might still see a curve ball re: WN in MIA. Keep in mind that the FL service in MIA is about as token as it could be so in a way it makes more sense for WN to make a full WN station if it's going to stay. Wishful thinking I suppose as MIA was one of the ones I wanted to see stay.

Possibly. But maybe they felt it would be premature. They they still haven't fully opened up in ATL yet (no ATL-Florida, ATL-PHL on WN metal for example), let alone having a WN presence in some markets like CLT. Atleast they are in FLL for that region.

Note that IAD will maintain Southwest service.


My guess is IAD is eventually toast for WN. WN will move to DCA, with DCA-MDW and DCA-ATL as the primary departing flights there, with maybe MCO, HOU, STL and BNA. The perimeter rule prevents DEN, and WN flies IAD-DEN, so the pax that were flying to DEN nonstop will have to bear with a 1-stop or drive up to BWI.

I would have thought WN could have done something with MIA, but this announcement seems to indicate otherwise. It really doesn't make sense to announce you are leaving the announce WN as starting? They are pretty strong at FLL, so maybe they don't feel they need a MIA presence.

Ultimately, it looks like WN bought FL for two main purposes

1. Gain access / more access into LGA, DCA, and ATL.
2. Get about 100 737 airframes and the associated crews

I think everything else that FL brought to the table (717's, MKE Hub, midsized Midwest and mid Atlantic markets) WN see's as expandable. I am guessing this may be the first of many announcements of cities being dropped.

Forgot a #3. Remove a competitor. For example, it's cheapest to fly west coast-east coast on Sun of Thanksgiving weekend on AirTran. SW removes that choice. NK and B6 are still there but have so many holes in their network, and have more focused areas, that they currently aren't significant from that perspective.

Yes, Southwest's purchase removes a competitor to WN, but it removes a competitor for United, Delta, American and all other carriers operating in the U.S., too.

Access to slots in big airports may be the overriding reason; ~eight years ago Southwest figured out there aren't enough Louisvilles and Norfolks in the country to add to the route network to grow at a satisfactory rate.

I got cousins in Bloomington. Airtran has been such a great addition for them. While Airtran hasn't shied away from discontinuing similar routes inthe past without any prodding from Southwest (example : Burlington, VT), Southwest will surely not help matters with such issues. At least with Airtran, they used to disconitnue routes only if the loads were bad. THey also were more amenable to going with local incentives to keep unprofitable routes alive. Southwest probably is too big to worry about such factors. Just guessing.

I fly into Central Illinois occasionally and PIA has a brand new airport terminal and much more comprehensive service than BMI. PIA has Star Alliance seriving ORD and DEN; Skyteam serving DTW and MSP; OneWorld serving ORD and DFW plus where ever Allegiant flies. That's pretty comprehensive service right down the road plus it's not that hard to drive to STL or CHI. FL cuts are bad if you are going to ATL but otherwise you've got many options nearby. I'm somewhat surprised BMI has much commercial service at all - maybe they can start at DL flight PIA-ATL to fill the void left by the Air Tran departure.

And I guess there is not much hope of WN picking up IAD-ATL.

I fear there are folks on Virginia Ave. re-running their IAD and MIA pricing models right now....

I fly into Central Illinois occasionally and PIA has a brand new airport terminal and much more comprehensive service than BMI. PIA has Star Alliance seriving ORD and DEN; Skyteam serving DTW and MSP; OneWorld serving ORD and DFW plus where ever Allegiant flies. That's pretty comprehensive service right down the road plus it's not that hard to drive to STL or CHI. FL cuts are bad if you are going to ATL but otherwise you've got many options nearby. I'm somewhat surprised BMI has much commercial service at all - maybe they can start at DL flight PIA-ATL to fill the void left by the Air Tran departure.


There's a little company in town called State Farm that provides plenty of business to CIRA as a base of revenue. Aside from that, they get pretty good numbers through the airport considering the size of the town. Airtran had service to ATL and direct service to MCO several times a day.

Bottom line is that BMI loses an airline on June 3rd that provides 40% of the passenger traffic at the airport. The airport has some work to do between now and then to do damage control.

The beauty of being local is leaving my house 50 minutes before wheels up and make the plane with plenty of time to spare - park my car for free, and wait in a security line that may be 5 people deep. A ride to MDW or ORD comes with unknown traffic patterns, parking in remote lots, and crowds. Its not the end of the world, but after being spoiled for so many years, it may be quite a change. I could be in MCO in less time door to door on Airtran than would spend just getting to ORD.

Re: IAD, Don't think BWI is a realistic option for many in Northern VA. It's 3-4 hours in traffic from IAD.

It's DCA or another airline for many of us

Quoting Mike Boyd on WN's decision to end FL service at BMI:

“This hurts all of Central Illinois,” said Mike Boyd, a Colorado-based airline consultant who has worked with CIRA. “They’re (Southwest) missing an opportunity.”

Well said.

Or said because he has a vested (i.e. is well-paid) interest @:-)

I just saw the DL is reinstating the PIA-ATL flights next year, possibly in response to FL bailing from BMI.