29Sep/100

Southwest to Acquire AirTran – What Does That Mean for You?

So far, not a whole lot. While Southwest and AirTran announcing their deal on Monday was some of the biggest airline news of the year - things will be operating as normal for now. Southwest and AirTran will remain two separate airlines, and are not cooperating in any way.

Before the deal gets finalized - the shareholders of both companies need to approve it, and it also needs to pass regulatory muster with the Department of Justice. And then all the integration takes place. That's currently expected to be completed 1.5 - 2 years after the deal closes, when the two carriers will begin operations under a single operating certificate.

Once that does happen, though - the AirTran product is basically toast. It's abundantly clear who's acquiring who here. Business class? Gone, in favor of all-economy like Southwest. Assigned seats are also gone. On the bright side - AirTran's fees for the first two bags and change fee is also gone!

Basically, AirTran will morph into Southwest. Overall, the deal is pretty interesting. Southwest will have a large fleet of an airplane that isn't a 737 for once, and also finally move into Atlanta - in a huge way! We'll see how it goes.

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