Southwest Announces Merger with AirTran

September 27, 2010 § Leave a comment

Fee friendly airline Southwest announced today that  it is buying fellow low-cost airline AirTran. The price was 1.4 billion dollars however it will cost them somewhere around 3.4 billion in the end. The extra cost will come from paying off AirTran’s current debt.

This deal is a win not only for consumers but also for Southwest as well despite having to pay off AirTran debt. Southwest will now be able to have flights in places such as Boston, New York, and most importantly Atlanta. Their network will expand by 25%  from a numbers standpoint.

Flyers of AirTran will be graced with the lower fees and better service offered by Southwest. Southwest customers will have more options when flying.

The deal has already been approved by both companies boards and only needs to be approved by shareholders and regulators now.

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