AirTran Airways Applies For Slots In Washington, DC; Carrier requests competition for the nation's capitol.

Business Editors

ORLANDO, Fla.--(BUSINESS WIRE)--May 5, 2000

AirTran Airways will tomorrow file an application with the Department of Transportation requesting eight exemption slots at Ronald Reagan Washington National Airport enabling the carrier to initiate five daily roundtrip flights between Washington, DC, and Atlanta. With the slots, AirTran Airways also plans to offer Washington, DC, travelers twice daily one-stop service to Gulfport-Biloxi, and new one-stop service to Savannah and Fort Walton Beach via its Atlanta hub.

"The Secretary of Transportation has the opportunity and power to make affordable air fares and greater consumer choice available to the Washington, DC, market through increased competition," said Kevin Healy, AirTran Airways' vice president, planning. "If the Secretary grants AirTran Airways the requested slots, Washington, DC, business and leisure travelers will be connected to twenty-five U.S. cities at the most competitive prices in the nation. Our presence at Washington National will undoubtedly have an impact on air fares and affordability of air travel in the Washington, DC, market - the benefits of low fare competition are significant and well documented."

For the twelve-month period ending September 1999, passengers traveling between Atlanta and the twenty-two cities served by AirTran Airways saved in excess of $680 million dollars. The most notable airport city-pair that has not benefited from the affordable fare competition provided by AirTran Airways' service in Atlanta is Ronald Reagan Washington National. Based on historical trends and normal market reaction to the entrance of an affordable carrier, Washington, DC, consumers in the seventeen city-pairs served by AirTran would save more than $71 million per year.

Even more impressive are the benefits that AirTran Airways' affordable service has brought to small and mid-size markets such as Gulfport-Biloxi, Fort Walton and Savannah/Hilton Head. Since AirTran Airways entered those markets passenger demand has grown more than 154% while average fares have declined as much as 68%. If AirTran Airways is granted the requested slots, the benefits will reach well beyond Washington National and to communities throughout the southeastern United States.

"Approval of AirTran Airways' application is a step toward competition - it reassures that which Congress and consumers have already deemed in the public interest," said Healy.

Systemwide, AirTran Airways operates 280 daily departures to 30 cities. Offering the convenience of easy, same concourse connections in Atlanta, AirTran Airways operates 131 daily departures from Hartsfield Atlanta International Airport, the world's busiest airport.

AirTran Airways provides everyday, affordable air travel throughout the eastern United States, and unlike other airlines, never requires a roundtrip purchase or Saturday night stay. AirTran Airways is the launch customer for the Boeing 717, today's newest, most innovative commercial aircraft. AirTran Airways is a subsidiary of AirTran Holdings, Inc. (Nasdaq:AAIR).

For more information and reservations, visit AirTran Airways' website at www.airtran.com, call your travel agent or call AirTran Airways at 800-AIRTRAN (800-247-8726) or 770-994-8258 (in Atlanta).

AirTran Airways' Editor's note: Statements regarding market demand, access, competition and projections are forward-looking statements and not historical facts. Instead, they are estimates or projections involving numerous risks or uncertainties, including but not limited to, consumer demand and acceptance of services offered by the Company, the Company's ability to maintain current cost levels, fare levels and actions by competitors, regulatory matters and general economic conditions. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements.