Airtran Continue Successful to Be Successful in Essay

AirTran Continue Successful to Be Successful in This Highly Competitive Industry?

The objective of this study is to answer the question of whether AirTran will continue to be successful in this highly competitive industry.

According to Rouse (n.d.) in her work on AirTran Holdings, Inc., the ability of AirTran Airways to grow in the worst environment for the airlines in a long time and stated to be an unexpected turnaround. The stated strategy of AirTran is the development of a brand identity that is innovative in nature and that distinguishes it from other low-fare and full-service airlines. Two segments are reported to be targeted by AirTran: (1) price-sensitive travelers; and (2) leisure travelers, in the eastern U.S. (Rouse, 2005) AirTran also has a business class product reported to be equal to the first class service of its competitors.

Primary Services and Elements

Products of AirTran include: (1) a frequent flier program -- A+ Rewards; (2) X-Fares Standby Program -- offering flight to any AirTran destination for $55 per segment or $75 per long-haul segment; (3) travel partnerships with corporations including BellSouth, State Farm and John Deere; (4) public-private partnerships that enable AirTran to shift risk of expansion to communities and businesses; (5) was named best low-fare airline 2001 and 2002 by Entrepreneur magazine; (6) cost structure among lowest in domestic airline industry; (7) launch customer for new Boeing 717 having made close ties with Boeing and Boeing Capital Corporation.(Rouse, 2005)

II. Recent Merger with Southwest Airlines

AirTran is a wholly-owned subsidiary of Southwest Airlines and is reported to offer "coast-to-coast and near-international service" with approximately 500 daily flights to 47 destinations. (The Wall Street Journal, 2013, p.1) AirTran customers are able to exchange loyalty points between the A+ Rewards and Southwest Airlines Rapid Rewards programs. There is however reported to be trouble in paradise with the merger of Southwest and AirTran airlines now in its third year. The two airlines are reported to have combined in order to….....