While many US major airlines retrench, low-fare AirTran Airways is pushing forward with substantial expansion, especially to airports in the west of the country.
Orlando-based AirTran will begin new services this spring and summer from its growing hub in Atlanta to Los Angeles, Las Vegas and Denver. The twice-daily Los Angeles and Las Vegas flights will be operated initially by Ryan International Airlines, its marketing partner, using Airbus A320s with 12 business class and 150 economy seats. AirTran will fly the Denver route with its Boeing 717s, with 12 business and 105 economy seats.
Although the idea of taking on major carriers - Delta Air Lines on the Las Vegas and Los Angeles routes and Delta and United Airlines on the Denver route - is daunting, AirTran has found it advantageous to grow at Atlanta and other "big" cities, says John Kirby, AirTran's director of network planning. "When you go to the small and mid-sized origination-and-destination markets, it's easier for the competition to deny us service," he told the Airline Business Network 2003 conference.
Besides Atlanta, growth will centre on AirTran's "focus city" Baltimore/Washington - although not to markets covered by Southwest Airlines - and Orlando and New York LaGuardia. AirTran also plans to "join the dots" between large cities it serves, such as Boston-Philadelphia in May, Kirby says.
One of the few US carriers to report a profit last year, AirTran has a substantial cost advantage over competitors, Kirby says. On a 1,000km (550nm) route, for instance, its unit costs are 30% lower than Delta's and 60% lower than US Airways.
Overall, AirTran expects a 25-30% increase in capacity in 2003, after last year's 26% boost. About 11% of the rise will come from the additional seats in the 717 over the ageing McDonnell Douglas DC-9-30s it is retiring. By the end of 2003, AirTran's fleet will consist of 73 717s and it expects to exercise options for six 717s for delivery in 2004. It is also talking with Airbus and Boeing about a potential 50-aircraft order for longer-range, larger-capacity aircraft, although another option is the used-aircraft market.
CAROLE SHIFRIN FORT LAUDERDALE
Source: Airline Business
