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AirTran Reports Record Revenues, $19.6M Profit  
User currently offlineElwood64151 From United States of America, joined Feb 2002, 2477 posts, RR: 6
Posted (10 years 8 months 3 weeks 4 days ago) and read 3236 times:

( BW)(FL-AIRTRAN-HOLDINGS)(AAI) AirTran Holdings Reports Sixth Consecutive Quarterly Profit; Revenues Reach All-Time Record of $237 Million; Unit Costs Improve by 1.2%

Business Editors/Travel Writers

ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 22, 2003--AirTran Holdings, Inc. (NYSE:AAI), the parent company of AirTran Airways, Inc., today announced its sixth consecutive quarter of profitability and net income of $19.6 million or $0.24 per diluted share. In the third quarter of 2002, AirTran Holdings earned $1.2 million or $0.02 per share.
For the third quarter of 2003, the airline reported all-time record operating revenues of $237.3 million, representing a 29.6 percent increase over third-quarter 2002 operating revenues of $183.2 million. Unit revenues increased by 6.4 percent, which combined with a 21.3 percent increase in year over year available seat miles (ASMs), produced the record revenues.
"In what remains a challenging industry environment, AirTran Holdings is pleased to return value to our shareholders by reporting our sixth consecutive quarter of profitability," said Chairman and CEO Joe Leonard. "As we bring service to new cities and strengthen our brand in existing markets, AirTran Airways is poised to continue our growth and success."
AirTran Holdings' operating costs per available seat mile (CASM) declined 1.2 percent to 8.1 cents per mile, versus 8.2 cents in the same period last year. Operating margin was 11.1 percent, representing an improvement of 7.3 percentage points over last year's third-quarter margin of 3.8 percent.
Robert Fornaro, president and chief operating officer, remarked, "These results demonstrate that low costs, great service, friendly people and new airplanes provide a solid foundation for operational excellence and profitability. This is an exciting time for AirTran Airways as we move forward with growing our team and welcoming an ever-increasing number of business and leisure travelers."
Stan Gadek, senior vice president of finance and chief financial officer said, "During the third quarter of 2003, AirTran Airways again reduced unit costs on a year over year basis. We continue to benefit from the lower operating costs of our new Boeing 717 fleet. And with the introduction of the new Boeing 737s in June of next year, we expect to further reduce our operating costs moving forward."

Other highlights for the quarter include:


-- Reached all-time records set for a quarter in the following categories:
-- Passenger revenues
-- Operating revenues
-- Passenger enplanements
-- Revenue passenger miles
-- Available seat miles
-- Departures
-- Announced new service to Ronald Reagan Washington National Airport and San Francisco International, the airline's 44th and 45th destinations. Service will begin on October 23, 2003, and November 12, 2003, respectively.
-- Took delivery of four Boeing 717s, increasing the fleet of this aircraft to 68.
-- Ended the quarter with $308.7 million in cash, of which $266.2 million was unrestricted.
-- On October 1, 2003, received $139.3 million in net proceeds from a public offering of more than 9 million shares of common stock. Concurrent with the receipt of proceeds, we repaid at par $35 million in long-term debt.

AirTran Airways is one of America's largest low-fare airlines - employing more than 5,600 professional Crew Members and operating 508 flights a day to 45 destinations. The airline's hub is at Hartsfield Atlanta International Airport, the world's busiest airport by passenger volume, where it is the second largest carrier operating 188 flights per day. AirTran Airways, a subsidiary of AirTran Holdings (NYSE: AAI), is the world's largest operator of the Boeing 717 and has the youngest all-Boeing fleet of any airline. In 2004, the airline will begin taking delivery of new Boeing 737-700s. For reservations or more information, visit airtran.com (America Online Keyword: AirTran).

Editor's note: Statements regarding the Company's operational and financial success, business model, expectation about future success, improved operational performance and our ability to maintain or improve our low costs are forward-looking statements and are not historical facts. Instead, they are estimates or projections involving numerous risks or uncertainties, including but not limited to, consumer demand and acceptance of services offered by the Company, the Company's ability to maintain current cost levels, fare levels and actions by competitors, regulatory matters and general economic conditions. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2002. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements.



AirTran Holdings, Inc.
Consolidated Statements of Income
(In thousands, except per share data and statistical summary)
(Unaudited)

Three Months Ended
September 30, Percent
2003 2002(a) Change
---------- ---------- -------

Operating Revenues:
Passenger $229,818 $177,992 29.1
Cargo - 270 -
Other 7,493 4,889 53.3
---------- ----------
Total operating
revenues 237,311 183,151 29.6

Operating Expenses:
Salaries, wages and
benefits 59,332 51,692 14.8
Aircraft fuel 45,364 40,657 11.6
Aircraft rent 32,692 19,631 66.5
Distribution 11,651 9,731 19.7
Maintenance, materials
and repairs 14,400 9,446 52.4
Landing fees and other
rents 13,644 10,847 25.8
Aircraft insurance and
security services 5,121 7,259 (29.5)
Marketing and
advertising 5,902 5,490 7.5
Depreciation 3,322 4,046 (17.9)
Other operating 19,490 17,372 12.2
---------- ----------
Total operating
expenses 210,918 176,171 19.7
---------- ----------
Operating Income 26,393 6,980 -

Other (Income) Expense:
Interest income (768) (549) 39.9
Interest expense 7,287 6,992 4.2
Government grant - (640) -
---------- ----------
Other expense, net 6,519 5,803 12.3
---------- ----------
Income Before Income
Taxes 19,874 1,177 -

Income Tax Expense 261 - -
---------- ----------
Net Income $19,613 $1,177 -
========== ==========

Earnings per Common Share
Basic $0.27 $0.02 -
Diluted $0.24 $0.02 -

Weighted-average Shares
Outstanding
Basic 73,732 70,615 4.4
Diluted 92,132 72,027 27.9

EBITDA $29,715 $11,026 -
Operating margin 11.1 percent 3.8 percent 7.3 pts.
Net margin 8.3 percent 0.6 percent 7.7 pts.
Net margin-adjusted(b) 8.3 percent 0.3 percent 8.0 pts.

Third Quarter
Statistical Summary:
Revenue passengers 3,120,762 2,441,115 27.8
Revenue passenger
miles (000s) 1,910,161 1,426,776 33.9
Available seat miles
(000s) 2,601,682 2,144,572 21.3
Block hours 71,352 60,785 17.4
Passenger load factor 73.4 percent 66.5 percent 6.9 pts.
Break-even load factor 67.1 percent 66.1 percent 1.0 pts.
Break-even load
factor-adjusted(b) 67.1 percent 66.3 percent 0.8 pts.
Average fare $73.64 $72.91 1.0
Average yield per RPM 12.03 cents 12.48 cents (3.6)
Passenger revenue per
ASM 8.83 cents 8.30 cents 6.4
Operating cost per ASM 8.11 cents 8.21 cents (1.2)
Non-fuel operating
cost per ASM 6.36 cents 6.32 cents 0.6
Average cost of
aircraft fuel per
gallon 97.27 cents 92.60 cents 5.0
Weighted-average
number of aircraft 71 64 10.9

(a) Certain 2002 amounts have been reclassified to conform to 2003
presentation.
(b) Statistical calculations for 2002 exclude government grant of
$0.6 million.


AirTran Holdings, Inc.
Consolidated Statements of Income
(In thousands, except per share data and statistical summary)
(Unaudited)

Nine Months Ended
September 30, Percent
2003 2002(a) Change
---------- ---------- -------

Operating Revenues:
Passenger $658,590 $519,364 26.8
Cargo 715 926 (22.8)
Other 19,909 12,810 55.4
---------- ----------
Total operating
revenues 679,214 533,100 27.4

Operating Expenses:
Salaries, wages and
benefits 171,507 147,872 16.0
Aircraft fuel 133,542 113,506 17.7
Aircraft rent 88,968 49,751 78.8
Distribution 34,419 32,931 4.5
Maintenance, materials
and repairs 45,035 35,096 28.3
Landing fees and other
rents 38,402 31,565 21.7
Aircraft insurance and
security services 14,363 21,805 (34.1)
Marketing and
advertising 18,890 16,602 13.8
Depreciation 9,945 12,661 (21.5)
Other operating 58,669 55,109 6.5
---------- ----------
Total operating
expenses 613,740 516,898 18.7
---------- ----------
Operating Income 65,474 16,202 -

Other (Income) Expense:
Interest income (2,043) (1,602) 27.5
Interest expense 23,078 21,845 5.6
Government grant - (640) -
Payment under the
Emergency Wartime
Supplemental
Appropriations
Act, 2003 (38,061) - -
Convertible debt
discount amortization 1,812 - -
SFAS 133 adjustment - (5,857) -
---------- ----------
Other (income) expense,
net (15,214) 13,746 -
---------- ----------
Income Before Income
Taxes 80,688 2,456 -

Income Tax Expense
(Benefit) 1,848 (786) -
---------- ----------
Net Income $78,840 $3,242 -
========== ==========

Earnings per Common Share
Basic $1.09 $0.05 -
Diluted $0.99 $0.04 -

Weighted-average Shares
Outstanding
Basic 72,493 70,213 3.2
Diluted 81,776 73,492 11.3

EBITDA $75,419 $28,863 -
Operating margin 9.6 percent 3.0 percent 6.6 pts.
Net margin 11.6 percent 0.6 percent 11.0 pts.
Net margin-adjusted(b) 6.4 percent 0.5 percent 5.9 pts.

Nine Month Statistical
Summary:
Revenue passengers 8,643,229 7,144,586 21.0
Revenue passenger
miles (000s) 5,269,195 4,111,647 28.2
Available seat miles
(000s) 7,361,437 6,036,761 21.9
Block hours 203,055 174,024 16.7
Passenger load factor 71.6 percent 68.1 percent 3.5 pts.
Break-even load factor 62.8 percent 67.8 percent (5.0)pts.
Break-even load
factor-adjusted(b) 66.7 percent 67.9 percent (1.2)pts.
Average fare $76.20 cents $72.69 cents 4.8
Average yield per RPM 12.50 cents 12.63 cents (1.0)
Passenger revenue per
ASM 8.95 cents 8.60 cents 4.1
Operating cost per ASM 8.34 cents 8.56 cents (2.6)
Non-fuel operating
cost per ASM 6.52 cents 6.68 cents (2.4)
Average cost of
aircraft fuel per
gallon 98.56 cents 89.66 cents 9.9
Weighted-average
number of aircraft 66 62 6.5

(a) Certain 2002 amounts have been reclassified to conform to 2003
presentation.
(b) Statistical calculations for 2003 exclude payment under the
Emergency Wartime Supplemental Appropriations Act, 2003 and
convertible debt discount amortization of $38.1 million and
$1.8 million, respectively. Statistical calculations for 2002
exclude government grant of $0.6 million.



Reconciliation of GAAP Financial Information to Non-GAAP Financial
Information Three Months and Nine Months Ended September 30, 2003

Pursuant to the SEC Regulation G, we are providing further disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures reported on a GAAP basis. It is our view that the reported non-GAAP financial measures are more consistent with our true operating performance and provide a more meaningful period to period comparison as they exclude special items. Furthermore, in preparing internal operating plans and forecasts, these special items are excluded from management's analysis. Additionally, these measurements are more comparable to financial measures reported by other airlines.




A reconciliation of the components of the calculation of earnings
before interest, taxes, depreciation and amortization (EBITDA) is as
follows:

Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---------- ---------- ---------- ----------
(In thousands)
(Unaudited)
-------------------------------------------
Net Income $19,613 $1,177 $78,840 $3,242
Add back:
Income tax expense
(benefit) 261 0 1,848 (786)
Other (income) expense,
net 6,519 5,803 (15,214) 13,746
Depreciation 3,322 4,046 9,945 12,661
---------- ---------- ---------- ----------
EBITDA $29,715 $11,026 $75,419 $28,863
========== ========== ========== ==========


A reconciliation of the components of the calculation of net margin is
as follows:

Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---------- ---------- ---------- ----------
(In thousands)
(Unaudited)
--------------------------------------------
Net income $19,613 $1,177 $78,840 $3,242

Non-GAAP adjustments:
Stabilization Act
compensation 0 (640) 0 (640)
Payment received under
the Wartime Act (net of
tax) 0 0 (37,189) 0
Convertible debt
discount amortization
(net of tax) 0 0 1,771 0

---------- ---------- ---------- ----------
Adjusted net income used
to calculate net margin $19,613 $537 $43,422 $2,602
========== ========== ========== ==========

Operating revenues $237,311 $183,151 $679,214 $533,100

Calculation of net margin
using GAAP amounts 8.3% 0.6% 11.6% 0.6%
========== ========== ========== ==========

Calculation of net margin
using non-GAAP amounts 8.3% 0.3% 6.4% 0.5%
========== ========== ========== ==========


A reconciliation of the components of the calculation of break-even
load factor is as follows:

Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---------- ---------- ---------- ----------
(In thousands)
(Unaudited)
--------------------------------------------
Operating expenses $210,918 $176,171 $613,740 $516,898
Other (income) expense 6,519 5,803 (15,214) 13,746
Cargo revenue 0 (270) (715) (926)
Other revenue (7,493) (4,889) (19,909) (12,810)
--------------------- ---------------------
Passenger revenue
(excluding charter and
other revenue) required
to break-even (based on
GAAP amounts) $209,944 $176,815 $577,902 $516,908
Non-GAAP adjustments:
Stabilization Act
compensation 0 640 0 640
Payment received under
the Wartime Act 0 0 38,061 0
Convertible debt
discount amortization 0 0 (1,812) 0
Passenger revenue
(excluding charter and
other revenue) required
to break-even (based
on adjusted amounts) ---------- ---------- ---------- ----------
$209,944 $177,455 $614,151 $517,548
========== ========== ========== ==========

Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
(Unaudited)
---------- ---------- ---------- ----------
Calculation of break-even
load factor using GAAP
amounts:
Passenger revenue
(excluding charter and
other revenue)
required to break-even
(based on GAAP amounts)
($000s) 209,944 176,815 577,902 516,908
Average yield per RPM
(cents) 12.03 12.48 12.50 12.63
Available seat miles
(000s) 2,601,682 2,144,572 7,361,437 6,036,761

Break-even load factor
using GAAP amounts 67.1% 66.1% 62.8% 67.8%
===================== =====================

Calculation of break-even
load factor using non-
GAAP amounts:
Passenger revenue
(excluding charter and
other revenue)
required to break-even
(based on adjusted
amounts) ($000s) 209,944 177,455 614,151 517,548
Average yield per RPM
(cents) 12.03 12.48 12.50 12.63
Available seat miles
(000s) 2,601,682 2,144,572 7,361,437 6,036,761

Break-even load factor
using non-GAAP amounts 67.1% 66.3% 66.7% 67.9%
===================== =====================


A reconciliation of the components of the calculation of operating
costs per ASM and operating costs per ASM excluding aircraft fuel is
as follows:

Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---------- ---------- ---------- ----------
(In thousands)
(Unaudited)
-------------------------------------------
Operating expenses (based
on GAAP amounts) $210,918 $176,171 $613,740 $516,898

Less aircraft fuel 45,364 40,657 133,542 113,506
---------- ---------- ---------- ----------
Operating expenses
excluding aircraft fuel $165,554 $135,514 $480,198 $403,392
========== ========== ========== ==========


Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
(Unaudited)
---------- ---------- ---------- ----------
Calculation of cost per
ASM using GAAP amounts:
Operating expenses
(based on GAAP amounts)
($000s) $210,918 $176,171 $613,740 $516,898
ASMs (000s) 2,601,682 2,144,572 7,361,437 6,036,761
Operating cost per ASM
using GAAP amounts
(cents) 8.11 8.21 8.34 8.56
===================== =====================

Calculation of cost per
ASM excluding fuel:
Operating expenses
excluding fuel ($000s) $165,554 $135,514 $480,198 $403,392
ASMs (000s) 2,601,682 2,144,572 7,361,437 6,036,761
Operating cost per ASM
excluding fuel (cents) 6.36 6.32 6.52 6.68
===================== =====================




--30--EG/mi*

CONTACT: AirTran Holdings, Inc., Orlando
Tad Hutcheson (Media), 407/251-5578
tad.hutcheson@airtran.com
or
Arne Haak (Financial), 407/251-3618

KEYWORD: FLORIDA
INDUSTRY KEYWORD: TRAVEL TRANSPORTATION AIRLINES EARNINGS
SOURCE: AirTran Holdings, Inc.

Good news for FL. Good news for the industry that so many airlines are losing less or actually making money.


Those who fail to learn history are doomed to repeat it in summer school.
25 replies: All unread, showing first 25:
 
User currently offline767Lover From , joined Dec 1969, posts, RR:
Reply 1, posted (10 years 8 months 3 weeks 4 days ago) and read 3201 times:

Excellent work, AirTran! Show the bigger guys how it CAN be done.

User currently offlineBlatantEcho From United States of America, joined Sep 2000, 1903 posts, RR: 1
Reply 2, posted (10 years 8 months 3 weeks 4 days ago) and read 3163 times:

Stock down ~11% today.

Seriously, there is so much speculation now, even steady growth isn't a reciepe for high valuation anymore.

Go AAI go!

George




They're not handing trophies out today
User currently offlineProudToFlyAA From , joined Dec 1969, posts, RR:
Reply 3, posted (10 years 8 months 3 weeks 3 days 23 hours ago) and read 3146 times:

Excellent work, AirTran! Show the bigger guys how it CAN be done.

If they can apply that cost structure on an international network with at least 400 aircraft, then they can "show the bigger guys how it CAN be done."


User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 4, posted (10 years 8 months 3 weeks 3 days 23 hours ago) and read 3128 times:

I wouldn't blame the positive earnings for AAI for their stock trading lower today; some big name companies posted some disappointing earnings reports, and that news has lead to some major sell offs which and up affecting many stocks.

User currently offlineBlatantEcho From United States of America, joined Sep 2000, 1903 posts, RR: 1
Reply 5, posted (10 years 8 months 3 weeks 3 days 23 hours ago) and read 3121 times:

ProudToFlyAA-

or they could grow at a rate that allows them to manage their fleet properly, not have a billion sorts of planes for the same routes, buy an airline and integrate it poorly in the worst of times.

LUV, AAI, ALK, FRNT (using ticker symbols here for effect) kick the crap out of AMR anyday. Being big isn't an excuse for piss poor performance.

George



They're not handing trophies out today
User currently offlineProudToFlyAA From , joined Dec 1969, posts, RR:
Reply 6, posted (10 years 8 months 3 weeks 3 days 23 hours ago) and read 3101 times:

George,
I'm not saying AirTran should do anything differently. They're doing well, and it gives hope in the industry.

However, comparing AirTran to the major global carriers and saying "if AirTran can do it, why can't they" is just wrong. Sure, American/United/Delta could concentrate on one or two smaller fleet types, only fly domestic routes, and concentrate on one part of the country, but then they'd be worthless compared to their current state.


User currently offline767Lover From , joined Dec 1969, posts, RR:
Reply 7, posted (10 years 8 months 3 weeks 3 days 22 hours ago) and read 3073 times:

ProudtoflyAA:

I was under the impression that the major carriers are all trying to make a go at having their own low-cost airlines (i.e., Delta's Song, etc.)

They can all learn from AirTran's model of how to do so.


User currently offlineProudToFlyAA From , joined Dec 1969, posts, RR:
Reply 8, posted (10 years 8 months 3 weeks 3 days 22 hours ago) and read 3059 times:

I don't think that Delta's Song and United's remains-to-be-seen carrier qualifies as "all the major carriers."

User currently offline767Lover From , joined Dec 1969, posts, RR:
Reply 9, posted (10 years 8 months 3 weeks 3 days 21 hours ago) and read 3023 times:

Delta and United are major carriers who have started/are trying to start LCCs.

Unless you don't consider DL and UA "Major Carriers."


User currently offlineProudToFlyAA From , joined Dec 1969, posts, RR:
Reply 10, posted (10 years 8 months 3 weeks 3 days 20 hours ago) and read 2975 times:

the major carriers are all trying to make a go

They are not all trying to make a go. Just two major carriers.


User currently offlineBR715-A1-30 From , joined Dec 1969, posts, RR:
Reply 11, posted (10 years 8 months 3 weeks 3 days 19 hours ago) and read 2930 times:

I agree with ProudtoflyAA. You are comparing 2 different types of airlines here. AA is a major that has over 400 aircraft, and an international route structure, and AirTran is a Low-Fare Carrier with a Limited Route Structure for now and only 70-something Aircraft (albeit they will have 180 soon). You can compare AirTran to AA in a few years, but today they are both very different structures from one another.

-761


User currently offline767Lover From , joined Dec 1969, posts, RR:
Reply 12, posted (10 years 8 months 3 weeks 3 days 19 hours ago) and read 2915 times:

OKAY! I'm sorry for saying "all."

User currently offlineAA737-823 From United States of America, joined Mar 2000, 5721 posts, RR: 11
Reply 13, posted (10 years 8 months 3 weeks 3 days 17 hours ago) and read 2858 times:

However, lest we forget, it is the INTERNATIONAL flights that have remained profitable for the airlines- United is living (though barely) off of it's trans-pac revenue, and they've said so publicly.

It's in the domestic market that the lines are dying.


User currently offlineLastBaron From United States of America, joined Oct 2003, 290 posts, RR: 2
Reply 14, posted (10 years 8 months 3 weeks 3 days 16 hours ago) and read 2828 times:

the major carriers are all trying to make a go

They are not all trying to make a go. Just two major carriers


Proud has obviously already forgotten that USAir already tried that approach with the now long-gone MetroJet; in my book that makes three majors who have tried or are trying to copy the low-fare formula.

AirTran, JetBlue and Southwest rock in my book. So do Frontier and ATA. Their formulas are all working, obviously, judging by all the positive and record-breaking results this week. Now if only HP could soar back up to pre-9/11 values, stock-wise, I'd be a happy camper.

Many of the major carriers would not be missed if they collapsed tomorrow - the others would move in to fill the void in fairly short order. The only carrier I was sad to see fail after 9/11 was Midway, which had a fine product and was seriously underrated. (The disastrously stupid business-decision to move to RDU didn't help their outlook for survival much either...) If UAL, AMR, DL, NWA or US went bust tomorrow, some tears would be shed, but generally a lot of people would probably say "good riddance," even if somewhat under their breath...

User currently offlineTravatl From United States of America, joined Mar 2001, 2173 posts, RR: 7
Reply 15, posted (10 years 8 months 3 weeks 3 days 1 hour ago) and read 2766 times:

"Many of the major carriers would not be missed if they collapsed tomorrow "

Unless of course you wanted to fly to say....Valdosta, GA, Killeen, TX, Durango, CO or London, England.

The majors, legacy, cartel, WHATEVER, carriers are needed. And I work for AirTran....

Travis


User currently offlineProudToFlyAA From , joined Dec 1969, posts, RR:
Reply 16, posted (10 years 8 months 3 weeks 3 days 1 hour ago) and read 2749 times:

Unless of course you wanted to fly to say....Valdosta, GA, Killeen, TX, Durango, CO or London, England.

The majors, legacy, cartel, WHATEVER, carriers are needed. And I work for AirTran....


What you say is very true, Travis. At least AirTran is entering into smaller markets, despite their passing the hat around for subsidies, which is something the other LCCs can't lay claim to at this point. AirTran is more of a real airline than the other LCCs.... they've shown you don't need PTVs and colored potato chips to run a successful airline. LCCs certainly can't afford to go everywhere... but what many people don't realize is that as network carriers admit defeat and abandon routes between major cities (giving in to the LCCs) traffic drops to the smaller destinations and those services may not be sustainable. No matter what route the LCCs slap the network carriers on, other destinations suffer.

I may not prefer AirTran, but I have to give them credit.


User currently offlineElwood64151 From United States of America, joined Feb 2002, 2477 posts, RR: 6
Reply 17, posted (10 years 8 months 3 weeks 3 days ago) and read 2738 times:

TravAtl:

You are absolutely right. I did not post this topic in an effort to start a "Majors v. LCCs" flame war. Both serve a purpose and have histories.

JetBlue was started with more money than any airline in history. AirTran has its ValuJet roots. Frontier would not have been a success if they had continued on their original market strategy.

AA, UA, CO, NW, DL, and US all have a history of labor difficulties and, as a result, high operating costs. To serve their markets effectively, they have to have more than one type of aircraft, which WN, B6, and F9 do not. They are required by the deregulation act to serve unprofitable airports simply because those airports had service in the past.

Comparing them is a tad unfair, but tells us something about the future: Cutting costs are going to make the difference.



Those who fail to learn history are doomed to repeat it in summer school.
User currently offlineIslandHopper From United States of America, joined Feb 2003, 327 posts, RR: 2
Reply 18, posted (10 years 8 months 3 weeks 2 days 22 hours ago) and read 2708 times:

Wow...good for Airtran. Are any or all employees of AirTran unionised? If so, expect some unrest there. Unions smell blood when big profits come along and usually aren't happy until airlines are back in the red again.  Smile

User currently offlineWedgetail737 From United States of America, joined Aug 2003, 5888 posts, RR: 6
Reply 19, posted (10 years 8 months 3 weeks 2 days 16 hours ago) and read 2665 times:
Support Airliners.net - become a First Class Member!

Frontier makes money by ripping people off...selling fake fares on the internet and deny the fare exists when you check in at the airport.

I'm a big fan of the LCC's, including Air Tran, SWA and jetBlue, but Frontier can die for all I care.


User currently offlineJayDavis From United States of America, joined Jan 2001, 2000 posts, RR: 16
Reply 20, posted (10 years 8 months 3 weeks 2 days 3 hours ago) and read 2617 times:

Sounds like a personal problem Wedgettail737.

Tell us how and why Frontier ripped you off? I've never heard anything but high praises for Frontier. I guess if you REALLY wanted to get ripped off, Frontier could go out of business and if you live in DEN, UA would then begin to really rip you off with extremely high air fares to markets Frontier formerly served.


Jay


User currently offlineJBLUA320 From United States of America, joined May 2002, 3179 posts, RR: 19
Reply 21, posted (10 years 8 months 3 weeks 2 days 2 hours ago) and read 2598 times:
Support Airliners.net - become a First Class Member!

This is great news!
But as a shareholder, Im DYING!

It closed last Friday around 21.00, and today (Friday 10/23) at 10:30am, its at 14.81!!!!!!! I bought the damn stock at 13.20!

I dont get it- I know the market is down in general, but if they post "record" profits, why isnt the stock going UP!

JBLU


User currently offlineLuv2fly From United States of America, joined May 2003, 12090 posts, RR: 49
Reply 22, posted (10 years 8 months 3 weeks 2 days 2 hours ago) and read 2595 times:

Everyone and the whole market is down this week, remember you are in it for the long haul. I have stopped looking at my stocks as it does suck right now.


You can cut the irony with a knife
User currently offlineElwood64151 From United States of America, joined Feb 2002, 2477 posts, RR: 6
Reply 23, posted (10 years 8 months 3 weeks 2 days 1 hour ago) and read 2570 times:

JBLUA320:

Other companies' earnings reports this week have been bad, especially outside of the industry. So those few companies, because many of them are large DOW or NASDAQ composite companies, are adversely affecting the entire market. That includes AAI, which is doing remarkably well.

IslandHopper:

The only unionized employees I'm aware of at FL are the FAs. The pilots might be also.

However, the company has had a long history of good employee relations, with the exception of the FA union, so I doubt there will be significant unrest within the group. The FAs are already paid at a higher rate (compared to pre-9/11 levels) than at other companies, since they didn't take a pay cut at the time.

I doubt we'll see any labor problems at FL for awhile yet.



Those who fail to learn history are doomed to repeat it in summer school.
User currently offlineGroundStop From United States of America, joined Jun 2003, 611 posts, RR: 6
Reply 24, posted (10 years 8 months 3 weeks 2 days ago) and read 2562 times:

Pilots, flight attendants, and mechanics are unionized. Now that the flight attendant contract is being sorted out, everyone is happy.

JP


User currently offlineTravatl From United States of America, joined Mar 2001, 2173 posts, RR: 7
Reply 25, posted (10 years 8 months 3 weeks 1 day 15 hours ago) and read 2513 times:

JP -

As an AirTran flight attendant, I can tell you that we are definitely NOT happy with regard to our current contract negotations (it is FAR FAR FAR from being "sorted out")...and unfortunately, those negotiations will probably not be resolved any time soon...

Travis


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