Southwest Airlines has agreed to buy
AirTran Airways for $1.37 billion in cash and stock, more than doubling
its potential gate space at Boston’s Logan International Airport.
“The acquisition also allows us to
expand our presence in key markets, like New York LaGuardia, Boston
Logan, and Baltimore/Washington,” Gary Kelley, Southwest’s chief
executive, said in a statement on Monday. AirTran is a low-cost carrier,
similar to Southwest.
It’s unclear whether an expansion at
Logan expansion would effect Manchester airport, where Southwest is the
dominant carrier, handling almost 60 percent of the passenger traffic.
Southwest’s arrival at Manchester in
1998 kicked off a boom decade for Boston-Manchester Regional Airport,
sending fares plummeting and traffic soaring.
Last summer, Southwest returned to
Boston, flying out of two gates. AirTran has three gates at Logan.
Manchester airport officials said that
despite the Boston presence, Southwest says it remains committed to
Manchester.
The proposed deal would also give
Southwest access to Atlanta, the biggest domestic market that the
airline currently does not serve.
– David Brooks
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