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Southwest Airlines Closes on Purchase of AirTran Airways

May 3, 2011

Southwest Airlines has closed on its purchase AirTran Airways. The two companies will operate separately in the short term.

“The successful closing of this transaction is a significant accomplishment and marks a great day in the history of Southwest Airlines. I want to thank the people from both Southwest and AirTran who helped us achieve this important milestone,” said Gary Kelly, CEO, chairman, and president of Southwest Airlines. “Our first order of business is to welcome our new friends from AirTran to the family in a truly Southwest Airlines way.”The purchase allows Southwest to extend its network into key markets it doesn’t currently serve, such as Atlanta and Washington, D.C., via Ronald Reagan National Airport. Southwest will now be able to serve more than 100 million customers annually from more than 100 different airports in the U.S. and near-international destinations, Kelly said. He added that Southwest now can expand into New York LaGuardia, Boston Logan, Milwaukee and Baltimore/Washington, as well as add service to many key smaller cities.  Kelly said that soaring fuel costs are currently putting many airlines in financial difficulty, and that combining the two airlines means the new entity will be better equipped to weather the energy-price storm.

Southwest said that Bob Jordan, Southwest’s executive vice president of strategy and planning, will serve as president of AirTran, effective immediately. Bob Fornaro, who has served as chairman, president and CEO at AirTran, will serve as a full-time consultant for the integration of the two airlines, working closely with Kelly and Jordan to ensure a smooth transition.
As previously announced, Southwest Airlines’ headquarters will remain in Dallas, with plans for AirTran’s operations and presence in both Orlando and Atlanta still under review. Additional announcements during the integration will be made as plans unfold.

Jordan will continue to serve on the joint Integration Board consisting of Kelly, Fornaro, Mike Van de Ven (Southwest executive vice president and chief operating officer), Loral Blinde (AirTran senior vice president human resources and administration), and Jeff Lamb (Southwest senior vice president of administration & chief people officer). The Integration Board will continue to provide overall direction of the integration efforts.

Until a Single Operating Certificate (SOC) is secured from the Federal Aviation Administration, AirTran operational departments will continue operating under the AirTran operating certificate with the full authority of its operating teams. For more information, visit www.southwest.com.

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