Why did Southwest merge with AirTran?

Why did Southwest merge with AirTran?

At the time it unveiled its acquisition of AirTran, Southwest outlined three major benefits it would derive from the purchase of its smaller rival – access to Atlanta, an ability to tap small markets and instant access to international markets in Latin America and the Caribbean operated by AirTran.

What type of strategy does Southwest Airlines use?

Southwest’s Generic Strategy for Competitive Advantage (Porter’s Model) Southwest Airlines Co.’s generic strategy is cost leadership, which creates competitive advantage based on low costs and correspondingly low prices.

What airline did AirTran merge with?

Southwest Airlines
On May 2, 2011, Southwest Airlines closed on its purchase of all of the outstanding common stock of AirTran Holdings, Inc. (NYSE: AAI), the former parent company of AirTran Airways (AirTran).

What was the merger of southwest and AirTran?

As Southwest embarked on its merger with AirTran, Delta was completing its merger integration with Northwest and United and Continental had just announced their intent to merge, so the combination of those four airlines into two also affected ASM allocation among the consolidated airlines.

What is the market share of AirTran Airlines?

AirTran has a 22% domestic market share at Hartsfield-Jackson airport, with half of its flights originating and terminating there. The acquisition will give Southwest access to new customers by connecting passengers through the Southeast.

How many planes does Southwest fly with AirTran?

In a report, Hunter Keay, airline analyst at Stifel Nicolaus Capital Markets in Baltimore, Md., wrote that AirTran operates 87 B717 and 52 B737-700 aircraft. He expects Southwest to fly the planes under its own colors and its own interior seat configuration, eliminating AirTran’s first-class section.

How many seats does Southwest Airlines have in the southeast?

According to estimates by Southwest, only 11.9% of the airline’s current seat distribution is in the Southeast; the merger with AirTran will up that figure to 17.9% and also give a slight boost to seat distribution on the East Coast.