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Old 09-28-2010, 06:32 PM
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LuvJockey
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Originally Posted by forgot to bid


Clark Howard “ecstatic” Southwest buying AirTran
9:42 am September 27, 2010, by Rana Cash

Clark Howard is on cloud nine since learning that Southwest Airlines is buying AirTran.

Howard, a consumer advocate and host of his own radio program on AM 750 and now 95.5FM News/Talk WSB says that Southwest’s move into Atlanta’s Hartsfield-Jackson International Airport is a huge bonus for local passengers.

“I am just ecstatic,” Howard said. “It’s like my birthday and my wedding day, the whole thing at once. This is really big. Southwest is the most important player in the airline industry and Atlanta is the biggest airport operation in the country. It’s been so weird that Southwest flies to LaGuardia, but not Atlanta.”

Why all the excitement?

Southwest, which flew only as close to Atlanta as Birmingham, will give travelers more choices to fly at lower fares. In markets where both airlines have existed — Orlando, Tampa and Jacksonville, Fla., for instance — fares are considerably lower than they are where only of the airlines has a foothold.

“The difference in fares is just shocking,” Howard said. “There are a lot of places where you will get a better deal.”

Southwest and AirTran said the new airline will operate from more than 100 airports and serve more than 100 million customers.

Southwest does not beat out AirTran in all areas, though. While Southwest has less expensive flights on shorter flights, AirTran is a better bargain generally for longer flights. AirTran has a more generous frequent flyer program and its credit card is better, Howard said. Southwest, however, has lower baggage fees. It does not charge anything for the first two checked bags. With Southwest in Atlanta, passengers can also expect more destinations.

Atlanta was almost an add-on in the $1.4 billion transaction, Howard said.

“Atlanta is not core to what Southwest is thinking,” Howard said.

The ability to fly more prominently in the northeast, where AirTran has had great leverage, was key to the deal, Howard said. In Baltimore, both have existed, but AirTran has “been bugging the daylights out of Southwest,” Howard said. “Now, they eliminate the flea on the elephant.”

“I’ve been hoping for this day for 20 years,” he said. “Ever since Eastern Airlines went away.”

Question: What do you think of this news? Are you glad to see Southwest come to Atlanta? Do you think you’ll find cheaper flights?
Here's what I think-

Originally Posted by LuvJockey
1Q 2010

1 Huntsville, AL
2 Charleston, SC
3 Knoxville TN
4 Memphis, TN
5 Newark-Liberty, NJ
6 Houston Bush, TX
7 Washington Dulles, VA
8 Grand Rapids, MI
9 Dallas-Fort Worth, TX
10 Cincinnati, OH 486.31


Lowest average (of top 100 by passengers)
90 San Jose, CA
91 Ft. Myers, FL
92 Las Vegas, NV
93 Oakland, CA
94 Milwaukee, WI
95 Ft. Lauderdale, FL
96 Dallas Love, TX
97 Orlando, FL
98 Burbank/Glendale/Pasadena, CA
99 Long Beach, CA
100 Atlantic City, NJ

Atlanta is #26, Denver is now #78. Denver's average fare is 35% lower than 2001, Atlanta's is 3% lower. In 2001, Denver's avg fare was about $90 higher than Atlanta's, in 2010 it is about $60 lower. That's a relative change of about $150 between the two cities.

Atlanta had 88 million passengers in 2009. Delta had 56%, AirTran had 18%. I can see a reduction of 13.2 billion in Delta's annual revenue over the next few years as long as they disregard the obvious threat to their business that the Southwest Move portends.
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