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Where Does AirTran Get The $$$$$$$$$  
User currently offlineTWA902fly From United States of America, joined Dec 1999, 3128 posts, RR: 4
Posted (14 years 8 months 2 weeks 3 days 8 hours ago) and read 984 times:

I am just wondering. I know that they were "financially troubled" and had little money- plus they just recieved their first 717, where do they get the money to operate like that? They gotta be cutting back on something


life wasn't worth the balance, or the crumpled paper it was written on
7 replies: All unread, jump to last
 
User currently offlineSammyk From United States of America, joined Oct 1999, 1690 posts, RR: 0
Reply 1, posted (14 years 8 months 2 weeks 2 days 21 hours ago) and read 893 times:
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Well, they are profitable, at least for the last few quarters. They must have their debt well structured and are paying it on time. If you go to their website you can see how they financed the first 10 717s. Also, the lower operating cost of the 717s is probably helping them cut costs with just fuel alone.

Samy


User currently offlineAa737 From United States of America, joined Oct 1999, 849 posts, RR: 0
Reply 2, posted (14 years 8 months 2 weeks 2 days 18 hours ago) and read 877 times:

Will Airtran eventually have only 717s and retire all the DC-9s? I bet that would make them very profitable.

User currently offlineSammyk From United States of America, joined Oct 1999, 1690 posts, RR: 0
Reply 3, posted (14 years 8 months 2 weeks 2 days 15 hours ago) and read 865 times:
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I believe thats the plan, I think the CEO has said that if he had a complete 717 fleet now that Airtran would save some 60 million a year.

Sammy


User currently offlineTWA902fly From United States of America, joined Dec 1999, 3128 posts, RR: 4
Reply 4, posted (14 years 8 months 2 weeks 2 days 12 hours ago) and read 855 times:

What are they going to do with them? Maybe they can sell their DC9s and 737200s to Legend, the new startup out of DAL


life wasn't worth the balance, or the crumpled paper it was written on
User currently offlineFrontierMan From United States of America, joined Oct 1999, 413 posts, RR: 0
Reply 5, posted (14 years 8 months 2 weeks 2 days 11 hours ago) and read 852 times:

From what i understand Valujet had huge cash reserves right before the merged with AirTran. AirTran is not financially troubled. They have one of the lowest break-even load factors in the industry. They constantly exceed that factor. I don't know where people get the fact that AirTran is financially troubled. AirTran also gets money from selling their old DC-9s.

User currently offlineAcvitale From United States of America, joined Aug 2001, 922 posts, RR: 10
Reply 6, posted (14 years 8 months 2 weeks 2 days 10 hours ago) and read 850 times:

Air Tran had a special charge in the last quarter dealing with disposing of the DC-9-30's and 737-200Adv's, They sold 13 or 14 of them and leased back 7 or so. The 717's are doing wonders for the carrier and I would expect that they will continue to show profitable quarters with the exception of special charges as they retire the older aircraft

User currently offlineMD-90 From United States of America, joined Jan 2000, 8508 posts, RR: 12
Reply 7, posted (14 years 8 months 2 weeks 2 days 9 hours ago) and read 850 times:

Back when Douglas first designed the DC-9, the main priority was to make it as cheap to operate as possible. Despite their higher fuel burn, their DC-9s are still fairly inexpensive to operate (especially when compared to, say, a 727). I'm sure they'll save a bundle of money on piloting training and fuel alone when they reach an all 717 fleet. I hope they eventually add service to Huntsville, AL (where I live) so I can try flying them.

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