Since AirTran was swallowed up by Southwest Airlines last year, it seems to have fallen off the radar of many TICKET readers. To get caught up with what’s up with Atlanta’s second largest carrier, we scored an interview with AirTran president Bob Jordan. Take a read through the Q&A and you’ll learn why the transition from AirTran to Southwest is moving so slowly, what Southwest loves about AirTran, plans for a combined loyalty program, an update on wi-fi availability, and what business travelers should like about Southwest.
Q: What’s the current status of the integration of AirTran into Southwest? Are you pleased with the results of the purchase so far?
A: The integration is progressing well and has been successful because all of our employees have stepped up to make it happen. AirTran’s corporate culture focuses on providing great customer service, running a great operation, and offering low fares, which are obviously things Southwest is very passionate about as well. So it was a great fit. We are very pleased with the purchase so far, and are very excited about the future.
Q: Do you still think that AirTran is a viable brand? Why or why not?
A: Absolutely – just look at our record 84.2% combined [Southwest + AirTran] load factor we experienced in August! We would not have hit that milestone without AirTran’s exceptionally strong performance. This is a successful company that fits well within our philosophy and business strategy. You know this in Atlanta and so do we — AirTran has a loyal customer base, and we want to continue to earn their business while growing the Southwest brand at Hartsfield-Jackson and giving them more itineraries.
Q: What is (or are) the most important lesson(s) you’ve learned from AirTran? From a consumer perspective, is there anything that AirTran did or does better than Southwest?
A: The biggest difference between the two airlines is obviously AirTran’s international service. What better way for Southwest to expand into international service than to bring in-house an entire company that has done that successfully? AirTran has launched several new international routes to new destinations in Mexico. Customers are responding well to new leisure markets that connect Orange County with nonstop service to Los Cabos, and we now offer nonstop flights from both San Antonio and Austin to Cancun. Mexico City is also a new AirTran destination and we’re carrying a lot of business customers there with daily flights from both Orange County and San Antonio. For now, these flights are under the AirTran brand, and we intend to keep it that way through the integration. But eventually, all international routes will be flown under the Southwest brand. By 2015, Southwest will be offering international flights from a new facility at Houston Hobby airport and it will be easy for Atlantans to plug into that as well.
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Q: How many AirTran jets have been converted into Southwest jets? What’s the schedule for conversion?
A: These conversions are more than just repainting, so it takes some time. So far, we’ve converted eight of about 50 AirTran 737-700s and that will continue at a very measured pace (one or two each month). It is important to us that we do this in the right way with the right timing. The brand conversions will unfold route-by-route, so customers could see a gradual shift in current all-AirTran routes to mixed AirTran and Southwest service, and eventually all Southwest service. But we are talking in terms of years, not months. We’re aiming to the have the vast majority of this done by 2015.
Q: When do you think the AirTran brand will disappear completely? Why not just integrate operations, paint the planes and be done with it like other airlines have done in recent mergers? What’s the value in keeping AirTran around for so long?
A: It’s hard to know at this point, a lot of factors will determine that. The key thing to remember is that with the AirTran purchase, we didn’t cherry-pick a failing airline to scoop up and rescue. We found a successful partner that provides Southwest with the ability to serve markets we’ve wanted to serve for a long time, such as Atlanta and the international markets. Because we have been historically a domestic carrier, we couldn’t immediately transition all AirTran service to Southwest. Even if we could, it still wouldn’t have made sense. AirTran is successful, provides great service and low fares, and that allows us to integrate in a way that is not rushed or hurried.
Q: Is it smarter for a frequent traveler in Atlanta to choose Southwest or AirTran when they both serve the same route– such as ATL-LAX or ATL-SFO (which started Sept 30)?
A: Loyalty points easily flow back and forth between the two brands, so there is no advantage to taking one brand over the other. We’ve seen Southwest customers transferring points to fly in Business Class on AirTran’s international flights, for example. And we are seeing a lot of AirTran customers engaging in Rapid Rewards by converting their banked points for Southwest flights, remembering that Southwest offers six times as many flights every day as AirTran. While we don’t have a firm launch date yet, work is underway and eventually there will be a single loyalty program with every bit of AirTran-earned credit available to use in a larger Southwest Airlines.
Q: How do you think business travelers will react to not having AirTran’s business class on long haul flights like ATL-LAX or SFO?
A: Southwest has a great product for business travelers and has built a lot of loyalty within the business sector over the years. In fact, Southwest carries more domestic business travelers than any other airline. Southwest offers low last-minute (walk-up) fares, which we know business travelers are much more likely to use. We’ve seen a great response to our Early Bird product, where travelers to pay a $10 fee for early boarding privileges.
We are making some additional changes in the cabin to improve the business customers’ experience on Southwest. For example, we continue to install wi-fi on Southwest aircraft and have been offering an introductory price point of just $5 per device—good for all-day access. People love it. We now have more than 320 wi-fi enabled aircraft with our satellite-based technology that will be a brand differentiator for us as we expand our horizon. We’re now providing pre-trip emails letting our customers know that their flight has been scheduled with a wi-fi equipped aircraft. We are purposefully deploying those aircraft on longer flights so passengers can be productive in the air. We’re also testing live streaming TV onboard these aircraft and have seen positive customer reaction so far. I am confident AirTran’s best customers will see the benefits of flying Southwest, but we have to be sure we clearly explain all that it offers so that those customers will make the transition.
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Anyone in Atlanta that travels for business and is a “real” business traveler does not pay on Delta for checked bags and just about any one else gets their first bag free thru Delta’s branded AMEX card product. If you’re paying to check bags on DL, you are not “playing the game” as you should be. Southwest in Atlanta will be an odd match for the business traveler’s loyalties and it’s clear to me that Delta is not worried. Quite frankly, if I were Delta, I’d rather have Southwest as the main competitor than AirTran. AirTran has low cost Business seats which Delta had to match and now when AirTran is no longer a brand, they won’t have that match with WN. AirTran has offering more similar to Delta’s than Southwest will ever be. Also, in Atlanta, what real and meaningful business traveler will settle for WN when they can get everything that Delta offers at a near-similar cost (and WN can often be more expensive that Delta/AirTran)…advance seat assignments, upgrades, food service, SkyClub, perks and so forth?
I divorced Delta years ago and have flown AirTran since. I have found them to be very reliable (being ATL based is advantageous I admit) as I have experienced few times where I was delayed and, those were weather related.
I have had to occasionally fly another airline or, split a trip between Delta and AirTran due to a better departure/arrival time.
I was going to book a flight on SWA to FTL for 10-22-12 and I would have to go to BWI first!
Hopefully, that will change where SWA will go direct from ATL.
I remember the “old days” with Delta when you gained status with segments….I was Platinum every year. Delta seemed to fly 757’s and 767’s everywhere….always able to upgrade (via a travel agent no less!) and enjoyed those hot, steaming wash clothes, plates with silverware….ahhh…the memories! Do they still have that Triple 7? Seems I remember that was used on the daily early flight to MCO to train pilots.
AirTran for me has been a good, solid airline that continues to earn my business. I am not sure what the future holds when SWA completely swallows up AirTran.
Thanks for the memories, Nigel! But back then, The TICKET cost even more than you remember– it was a whopping $37 per year. And we had more than 2000 folks paying for it. Funny how times change. — chris
I’ve been Elite for over 10 years. Since day one. In fact my first AirTran flight was as an Elite because they made some misleading statements to Chris (in his old printed newsletter that cost $35.00 a year!) and I questioned Chris and he went to AirTran to tell them their Elite rules were a mess. They rewarded me with Elite and I have kept it ever since. It currently expires in 2014.
Anyway, without the offer of a beverage on the ground and a big seat up front, I have no reason to try Southwest. I already have free bags and I don’t particularly need to see more email in the air. I usually just catch up on the ones I still have in the inbox.
I agree with a previous writer in that I booked trips around AirTran’s destinations like Newport News rather than Richmond and New Orleans rather than Baton Rouge; simply to get on AirTran. But there is going to be little reason to do that any more.
Note: Delta will never be good for me. I don’t go to China or Europe multiple times to get the big points. I can’t get past silver and we all know that is worthless. Now Southwest will be about the same. Simply another hassle.
The good news is that I will be “outta here” in 5 – 10 years; depending on the value of my 401k. That’s depressing. Just think about how many cattle calls I will have to endure with SouthWest…
All I want is the offer of a drink on the ground and my big seat. And it wouldn’t hurt if they brought back the chicken salads and the hot towels; but that may be asking too much.
See you out on C or D,
Nigel
Airtran elite for many years, fail to see the $5 wi-fi as a business selling point. Did I miss the others? SW will only be an option for me on flights 1 hour or less and if it is significantly (40-50%) less in fare.
Sorry to see Airtran go, always my 1st choice.
Having lived in ATL, flown them a few times, I would not quite agree “AirTran’s corporate culture focuses on providing great customer service”. AirTran has not been exemplary in my book, from check in and my itinerary not being found and being told to call someone while standing at the airport, to bad in flight.
This lines up well with Delta’s ploy to continue to add First to RJs, to lure over those upset by the upgrades going away. On a long haul like ATL-SFO or ATL-LAX that’s important to have for those very loyal.
Re: International, it’s very limited what AT has, and SWA has similar planes with ETOPS ratings that would allow them to fly internationally as well. Aloha flew 737-700 non stop SNA to KOA, HNL, OGG. Hence the big discussion on Houston Hobby and Uninental not expanding as initially thought (ex. 787 out of Houston initially).
Sorry I missed it, what is it that business travelers should like about Southwest? That they offer $5 wi-fi? Really? That’s it? “we have to be sure we clearly explain all that it offers so that those customers will make the transition.” Looks like Mr. Jordan lost an opportunity to explain.
I fly, a LOT, but not enough to ever be Platinum or Diamond with Delta…so I’ve been Elite with Airtran as long as the status existed and LOVED Airtran.
I’ve repeatedly contacted Airtran to let them know that if I have no ability to upgrade (purchased or free) there is no reason for me to continue being so loyal in the future. I have flown into alternate cities countless times (Flint vs Detroit, Dayton vs Cincy, Newport News vs Richmond) in order to stay on Airtran…
Why, going forward, would I not just pick whichever airline is closest to my destination?
There is NOTHING good about the merger for Airtran Elite members. Any “perk” offered by Southwest (free bags) Elite members already receive.