Monday, September 27, 2010

Southwest airlines to buy AirTran, expand in Boston

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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