Southwest Coming to National Airport

Purchase of AirTran will expand airline in several major domestic markets

By Kelvin Robinson
|  Monday, Sep 27, 2010  |  Updated 8:45 PM EDT
View Comments (
)
|
Email
|
Print
Southwest is expanding on the East Coast and plans to buy <a title=AirTran in a $1.4 billion deal." />

Chris Gordon

Southwest is expanding on the East Coast and plans to buy AirTran in a $1.4 billion deal.

advertisement

Southwest Airlines announced Monday it will purchase AirTran Airlines in a $1.4 billion acquisition, a deal that will expand the no-fees-on-bags airline in the D.C. area and bring it to Reagan National Airport.

Gary Kelly, CEO of Southwest, said in a statement the deal will “allow us to better respond to the economic and competitive challenges of our industry. ... It offers customers more low-fare destinations as we extend our network and diversify into new markets… [including] Washington D.C. via Ronald Reagan National Airport.”

The acquisition will also expand Southwest in Atlanta, New York LaGuardia, Boston Logan and BWI Thurgood Marshall, where AirTran is the dominant airline.

Southwest will also acquire some international flights in the Caribbean and Mexico.

The airline says its combined organization would have nearly 43,000 employees and serve more than 100 million customers from more than 100 domestic and international airports. Southwest’s revenue last year was $11.2 billion and AirTran profited $2.5 billion.

Board members from both companies approved the deal unanimously. It will now be subject to regulatory approval.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Join the Ride to Conquer Cancer
Join the Ride To Conquer Cancer, Sept. 13 Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out