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Southwest to buy AirTran


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Since most of us travel a lot, this could be a good thing I suppose. I'm still mixed on it

 

http://www.bloomberg.com/news/2010-09-27/southwest-airlines-agrees-to-buy-airtran-for-1-4-billion-in-cash-shares.html

 

Southwest Airlines Co., the largest low-fare carrier, agreed to acquire AirTran Holdings Inc. for about $1.4 billion in cash and stock, giving it access to Atlanta, the busiest airport in the U.S.

 

The offer values Orlando, Florida-based AirTran at $7.69 a share, 69 percent more than its closing price on Sept. 24, Southwest said today in a statement.

 

Atlanta is the largest U.S. market Southwest doesn’t already serve, the carrier said in the statement. The acquisition also allows Southwest to expand its presence at main U.S. airports including New York’s LaGuardia and Boston’s Logan. The announcement comes as UAL Corp. merges with Continental Airlines Inc., creating the world’s largest carrier.

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^Very interesting news.

 

Southwest Airlines has always avoided servicing ATL because they didn't want that airport to bring down their on-time ratings for arrivals and departures. However their presence there would drive down prices some which would be good for air travelers.

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I'm not sure how to take this news, either. Southwest serves my area out of Norfolk, but their flights are always more expensive (for example, to Orlando) than most of the other carriers, including Air Tran. Hell, even with paying extra to check a bag or to select a seat (which really does irritate me), Air Tran is cheaper than Southwest when flying out of southeast Virginia.

 

If they keep Air Tran's routes out of Richmond and Newport News and drop the checked-baggage fees, I'd be OK with it.

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^ Yeah, that was my thought. Southwest doesn't fly to Atlanta, so it doesn't hurt competition here (in fact, it may add some heat to Delta since they will serve even more destinations) - but on big routes where SWA and AirTran compete (especially BWI-MCO and the like), it can't be good for prices.

 

Air Tran also had really affordable first class tickets and great seats, and I imagine Southwest will get rid of them

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^^I fly out of Norfolk and while I have seen some price increases for SWA I'm still able to get good rates through their weekly sales or DING Fare specials. I do however miss the prices when they started servicing ORF eight years ago. I use to get nonstop roundtrip flights to Orlando for only $95 (tax and fees included).

 

Now according to this Q&A they plan on doing away with AirTran's checked baggage fees but they also plan the same with assigned seating. I guess another positive you can look at is SWA will not keep the $75 cancellation fee that AirTran has.

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All this consolidation in the airlines cannot be good for fares, which are already way up this year. I'm not a fan of Southwest (never that great of a deal for where I want to go, lack of assigned seating), but I did have good luck with AirTran.

 

Oh well, I fly mostly out of CVG these days and Southwest isn't going to be coming into that market any time soon.

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I have never flown, but if I pack like I do for road trips, I would go broke with baggage fees (a suitcase or two, a camera bag, a small camera bag, a laptop back pack if I don't have to take towels and bedding{when I went to New Orleans with church, we had to take towels to shower with and sheets, pillows and blankets for sleeping}, I am not a light packer). I like to drive because I can stop at places along the way if they interest me. I was almost going to fly to LAs Vegas a few years ago courtesy of my uncle, but I didn't have food money so I couldn't go.

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I'm not a big fan of SWA either. To many issues with seating, people getting booted from their flights. Watch the show Airline, there is a constant seating issue. I always thought they were to pricey too. Yeah no checked bag fees, but if comes at the expense of all the other inconveniences...no thanks!! I don't like they idea of AirTran being bought by SWA. I really liked Air Tran, they had great prices. Guess I'll stick to Delta or AA!!

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I love SouthWest. I always try to fly with them when I fly somewhere in the US.

 

As for the seating problems, I've never had lower than a B seating and usually average an A 10 spot in line. If you just go on their site 24hrs before you take off there's really nothing to complain about.

And if you're excuse is you're at a park and can't, then try asking guest services. I've had my boarding passes printed out at guest services so I didn't have to leave for the hotel to do it.

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I've never had a problem with Southwest and the whole seating thing doesn't bother me at all. Most of their flights are only a couple hours at most, so what's the big deal?

 

If you're traveling with other people, their seating policy sucks. I don't want to have to show up super early for just a domestic flight just to be able to get a seat next to the person I'm traveling with. Especially when every other airline I fly on will give me a seat assignment. If Southwest was fantastically cheaper than the other carriers, it might be worth the hassle. But they're never cheaper when I look. In fact, I can usually find better fares on the legacy carriers.

 

Also, it's really obnoxious that "families traveling with small children" get basically guaranteed adjacent seating, but if you're traveling with "just" your spouse they don't extend you that courtesy.

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Seat assignment is actually a big deal to me too (I got lucky on KLM this past trip, otherwise, I'd be cursing them too), and Delta pretty much always matches AirTran on shared routes

 

The more I think about it, and the more it sounds like Southwest policies will remain in place, the less enthused I am

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^ and ^^ The early boarding automatic check in really solves any problems of not being able to sit with your spouse/significant other. It's an extra $10 but when compared to $25 - $30 to check a bag, or whatever fee an airline may charge to allow you to pick your assigned seat it's really a non-issue in my eyes. I've used it on my last few flights with SW and I think my lowest boarding position was A30 and there were barely any people in the 1 - 15 group so I was about the 20th person on the plane. Plenty of great seats to chose from.

 

I'm a Southwest fan...never had a problem with them or the clientele.

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I've never really had a problem with Southwest. I've flown both AirTran and Southwest and other than the assigned seating, I found them to be very similar. I'm one of those people who always checks in early for Southwest and have pretty much always gotten my seat of choice. Now I realize that 99% of the world waits until the last minute to do stuff, but if you just put in a slight amount of effort, I really don't think the seating assignment issue is as big of a deal as people make it out to be.

 

--Robb

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If you're traveling with other people, their seating policy sucks. I don't want to have to show up super early for just a domestic flight just to be able to get a seat next to the person I'm traveling with. Especially when every other airline I fly on will give me a seat assignment. If Southwest was fantastically cheaper than the other carriers, it might be worth the hassle. But they're never cheaper when I look. In fact, I can usually find better fares on the legacy carriers.

 

Also, it's really obnoxious that "families traveling with small children" get basically guaranteed adjacent seating, but if you're traveling with "just" your spouse they don't extend you that courtesy.

No need to show up super early to get adjacent seats with your party. You can either pay the $10 automatic check in fee, or sign on to their website 24hrs before boarding and get a good number in line.

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The merger is a non-issue for me because neither one service Fresno. I do like the fact that Southwest doesn't have a checked bag fee. It was frustrating this Summer going on vacation and having to pay an additional $75 each way to check 3 bags. The really frustrating part is the fact that now people bring everything as carry on and the airlines don't bother to enforce the size rule. Finding space in the overhead is tough with all of the crap people bring on.

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I have yet to ever have any problems with Southwest. They just seem to do things right. It'll be interesting to see how this new arrangement works out on the customer service end.

 

On the business side, one thing that I wonder about is that Southwest has always flown 737s exclusively. Using one type of aircraft minimizes costs because you're only buying and maintaining one type of plane. Air Tran has 737s as well, but they also have a fleet of 717s (which is actually a redesignated MD-8x class aircraft after Boeing bought McDonnell-Douglas). A number of people I know don't like those with their strange 2 + 3 seating arrangement (doesn't concern me personally), and find them to be uncomfortable. I wonder if SouthTran, er, AirWest, er...whatever they'll be called...will eventually end up with an all-737 fleet at some point?

 

Eric

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