rico southwest - 7. Does the AirTran acquisition make good...

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7. Does the AirTran acquisition make good strategic sense for Southwest? AirTran would provide Southwest entry into Atlanta, which is gate constrained. Additionally, Southwest would get growth opportunities in Milwaukee, Baltimore, Orlando and the Caribbean. Transitioning towards international service may be beneficial for Southwest because these destinations are still fairly short haul distances and should support the flight frequency Southwest normally targets. It will also add a new dimension / product offering to the Rapid Rewards program by providing a more extensive set of vacation destinations. the AirTran acquisition is another step in Southwest's move toward setting up shop in larger airports in major cities, such as LaGuardia in New York and Ronald Reagan Washington National Airport. Southwest currently has limited presence at those airports because takeoffs and landings there are controlled by the slot system, a government-administered lottery designed to relieve congestion at busy airports. Merging with AirTran also gives Southwest a major position
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rico southwest - 7. Does the AirTran acquisition make good...

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