Ramon Lopez/WASHINGTON DC Guy Norris/LOS ANGELES
AirTran Airways is poised to introduce the first of up to 100 117-seat Boeing 717s to support its efforts to become profitable this year for the first time since 1995, says chairman and chief executive Joe Leonard.
The arrival of the 717 "will be a real shot in the arm for AirTran", says Leonard. The 717 launch customer is set to receive its first aircraft on 23 September and a second two days later. The handover follows joint US Federal Aviation Administration and European Joint Aviation Authorities certification on 1 September.
AirTran holds 50 firm orders and 50 options for the Boeing twinjet, and expects to be operating eight by year-end. Eight more will follow next year, 16 in 2001 and 18 in 2002. After several dismal years following the high profile crash of a McDonnell Douglas DC-9 in 1996 (before being merged with AirTran and shedding the ValuJet name), the Orlando, Florida-based carrier has reported two profitable quarters and Leonard projects good earnings for the second half of the year. The carrier serves 31 US cities in a dozen US states. AirTran sees modest growth next year with the 717. Leonard says the aircraft could allow for service expansion to Denver, Colorado, and Phoenix, Arizona.
The 717 will modernise AirTran's ageing fleet, which includes eight Boeing 737s and 40 DC-9-30s. Leonard says the aircraft will slash maintenance costs by more than 50% and reduce fuel consumption by 20%. "We see no reason why we would not exercise the options down the road," he says, but that decision is not expected until 2001.
Four leased 737s will be returned by year-end, and five non-hushkitted DC-9s will be retired this year. If airline revenues and the US economy stay strong, AirTran may hushkit the DC-9s and return them to service. Retirement of the remaining four 737s and 35 DC-9s will begin in 2001. Plans call for one DC-9 to be taken out of service for every two 717s delivered. AirTran aims to move to an all-717 operation by 2005/6.
Meanwhile, Boeing is looking again at the shorter fuselage 717-100X proposal, having previously all but killed the project. Lower cost production concepts under study could allow viable development of both the -100X and stretched -300X, says the manufacturer. Rolfe Sellge, 717 product marketing director, cautions that "the -100X is still an economically impossible business case today".
The company's challenge is to take $4-5 million from the current list price of $31.5 million, while "only taking out $1 million worth of aluminium and seats". A decision is not expected until next year.
Source: Flight International
