Tag Archives: 55003

Delta confirms it will operate the Boeing 717 between Los Angeles and San Francisco

Delta Air Lines (Atlanta) has now confirmed our previous report of adding the Boeing 717 type to the West Coast Delta Shuttle between Los Angeles and San Francisco. The airline issued this statement today:

Delta Air Lines will introduce Boeing 717 aircraft on eight of the 15 daily flights between Los Angeles International and San Francisco International airports in June, offering 40 percent more seats on its hourly nonstop Delta Shuttle.

Delta launched its hourly nonstop Delta Shuttle product from Los Angeles to San Francisco in September 2013, adding a California perspective to its long relied-upon New York-based Shuttle. The mainline 717s seat 110 passengers and offer access to power from every seat. The remaining seven daily West Coast Shuttle flights will continue to be operated by Delta Connection partner Compass Airlines using 76-seat Embraer ERJ 175 aircraft. All Shuttle flights offer access to First Class and Economy Comfort seating and feature Wi-Fi service, as does nearly every domestic Delta flight out of Los Angeles.

The 717 upgrade on the West Coast Shuttle is the latest in a series of investments in Los Angeles by the airline. Last month, Delta announced plans to begin daily nonstop service to Shanghai in July. Pending foreign government approval, seasonal service from Los Angeles to Managua, Nicaragua, will also begin this summer. These new routes build on Delta’s expansion in both international and domestic service from Los Angeles in recent months, including London-Heathrow in October; Dallas/Fort Worth* and Austin, Texas* in November; and Vancouver, Canada* in December.

*Flight operated by Delta Connection carrier Compass Airlines

From Los Angeles, Delta currently operates 154 peak-day departures to 48 destinations. At the airport, travelers passing through Los Angeles continue to enjoy the benefits of the $229 million expansion and enhancement of Terminal 5 at LAX, scheduled for completion in May 2015. Once onboard, Delta supports and markets the music of emerging artists and short-form content creators through exclusive partnerships that provide in-flight content for customers, who can now enjoy free entertainment from every seat out of Los Angeles through the new Delta Studio product.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 717-2BD N894AT (msn 55003) taxies to the runway at Baltimore/Washington.

Delta Air Lines aircraft slide show (current livery):

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Southwest Airlines to buy AirTran Airways, will now operate 717s

Southwest Airlines (Dallas) announced today (September 27) that it has entered into a definitive agreement to acquire all of the outstanding common stock of AirTran Holdings, Inc. (Orlando), the parent company of AirTran Airways (Orlando), for a combination of cash and Southwest Airlines’ common stock.

At Southwest Airlines’ closing stock price of $12.28 on September 24, 2010, the transaction values AirTran common stock at $7.69 per share, or approximately $1.4 billion in the aggregate, including AirTran’s outstanding convertible notes. This represents a premium of 69 percent over the September 24, 2010 closing price of AirTran stock. Under the agreement, each share of AirTran common stock will be exchanged for $3.75 in cash and 0.321 shares of Southwest Airlines’ common stock, subject to certain adjustments, based on Southwest Airlines’ share price prior to closing. Including the existing AirTran net indebtedness and capitalized aircraft operating leases, the transaction value is approximately $3.4 billion.

The agreement has been unanimously approved by the boards of directors of each company, and closing is subject to the approval of AirTran stockholders, receipt of certain regulatory clearances, and fulfillment of customary closing conditions.

The acquisition will significantly expand Southwest Airlines’ low-fare service to many more Customers in many more domestic markets (especially the mega hub at Atlanta), creating hundreds of additional low-fare itineraries for the traveling public. Moreover, the expansion of low fares should generate hundreds of millions in annual savings to consumers. Based on an economic analysis by Campbell-Hill Aviation Group, LLP*, Southwest Airlines’ more expansive low-fare service at Atlanta, alone, has the potential to stimulate over two million new passengers and over $200 million in consumer savings, annually. These savings would be created from the new low-fare competition that Southwest Airlines would be able to provide as a result of the acquisition, expanding the well-known “Southwest Effect'” of reducing fares and stimulating new passenger traffic wherever it flies.

AirTran revenues and operating income, excluding special items, for the twelve months ending June 30, 2010, were $2.5 billion and $128 million, respectively. Southwest Airlines revenues and operating income, excluding special items, for the twelve months ending June 30, 2010, were $11.2 billion and $843 million, respectively. The proposed transaction, including the anticipated benefit of net synergies, but excluding the impact of one-time acquisition and integration costs, is expected to be accretive to Southwest Airlines pro forma fully-diluted earnings per share in the first year after the close of the transaction and strongly accretive thereafter. Net annual synergies are expected to exceed $400 million by 2013. One-time costs related to the acquisition and integration of AirTran are expected to be in the range of $300 million to $500 million.

As of June 30, 2010, the combined unrestricted cash and short-term investments of the two companies was $3.7 billion. Southwest Airlines intends to fund approximately $670 million in cash consideration for the transaction out of cash on hand. Since June 30, Southwest’s cash and short-term investments balance has increased from $3.1 billion to $3.3 billion. In addition, Southwest Airlines has a fully available, unsecured revolving credit facility of $600 million.

Based on current operations, the combined organization would have nearly 43,000 Employees and serve more than 100 million Customers annually from more than 100 different airports in the U.S. and near-international destinations. In addition, the combined carriers’ all-Boeing fleet consisting of 685 active aircraft would include 401 Boeing 737-700s, 173 Boeing 737-300s, 25 Boeing 737-500s, and 86 Boeing 717s, with an average age of approximately 10 years, one of the youngest fleets in the industry. Southwest Airlines also announced, previously, that it is evaluating the opportunity to introduce the Boeing 737-800 into its domestic network to complement its current fleet, providing opportunities for longer-haul flying and service to high-demand, slot-controlled, or gate-restricted markets. This acquisition supports Southwest Airlines’ evaluation of the Boeing 737-800.

Until closing, Southwest Airlines and AirTran will continue to operate as independent companies. After closing, Bob Fornaro will continue to be involved in the integration of the two companies. Southwest Airlines plans to integrate AirTran into the Southwest Airlines Brand by transitioning the AirTran fleet to the Southwest Airlines livery, developing a consistent Customer Experience, and consolidating corporate functions into its Dallas headquarters. Subject to receipt of necessary approvals, Southwest Airlines’ integration plans include transitioning the operations of the two carriers to a Single Operating Certificate. Plans for existing AirTran facilities will be developed by integration teams and decisions will be announced at appropriate times. The carriers’ frequent-flyer programs will be combined over time, as well.

Copyright Photo: Dave Campbell. Southwest Airlines will become a new operator of the Boeing 717. Both companies are very supportive of logojets and special promotions. 717-2BD N949AT (msn 55003) in the Orlando Magic motif taxies to the runway at Fort Lauderdale/Hollywood.

AirTran Airways Holdings reports a 2Q net profit of $12.4 million

AirTran Holdings, Inc. (Orlando) the parent company of AirTran Airways, Inc., reported a net profit of $12.4 million or $0.09 per diluted share for the second quarter of 2010. Excluding $26.4 million in unrealized losses, net of taxes, related to the reduction in value of future fuel hedges, the Company’s net income for the quarter would have been $38.8 million dollars or $0.23 per diluted share. This result is particularly noteworthy given the 37.2 percent increase in the per-gallon cost of jet fuel, the airline’s single largest expense, year-over-year.

AirTran set quarterly records for revenue passenger miles flown, load factor and enplaned passengers. For the first time in AirTran Airways’ history, load factor topped 83 percent in the second quarter.

Copyright Photo: Norbert G. Raith. Boeing 717-2BD N949AT (msn 55003) painted in the Orlando Magic scheme, arrives at the ATL hub.

AirTran Airways to make Milwaukee a hub

AirTran Airways (Orlando and Atlanta) sensing a weakness with the Midwest Airlines brand will make Milwaukee a hub next year, basing aircraft and crews at MKE. The company will add additional routes according to this news item.

News link:


AirTran Airways introduces its latest 717 logojet – “Magic 1”

Copyright Photo: PRNewsFoto/AirTran Airways

AirTran Airways (Orlando and Atlanta) yesterday (December 15) while the world was watching the Boeing 787 first flight, introduced its latest Boeing 717-200 logojet, this one for the Orlando Magic of the National Basketball Association (NBA). Dubbed “Magic 1” the specially-painted 717-2BD, registered N949AT (msn 55003), was introduced at Orlando.

Press release:


AirTran to start ABE-Orlando/Fort Lauderdale


Please click on photo for full view and caption.

Please click on photo for full view and caption.

AirTran Airways (Orlando and Atlanta) will add new service to Allentown/Bethlehem/Easton (Lehigh Valley) (ABE), its 62nd destination, on June 25 with nonstop service to both Orlando and Fort Lauderdale/Hollywood.