AirTran Airways CEO Warns of ''Fortress Northeast'' If Mergers Don't Produce More Low-fare Competition.Business Editors NOTE TO MEDIA: Photo and logo are available in a Smart News Release(TM) on Business Wire's Home Page at www.businesswire.com and at www.newstream.com WASHINGTON--(BUSINESS WIRE)--Feb. 5, 2001 -- Marketplace reality is that only divestitures of slots, facilities will help re-stimulate communities in the Northeast, says Joseph Leonard -- The continued consolidation of the U.S. airline industry will produce a "Fortress Northeast," with airline consumers paying a steep price in the aftermath of the country's largest-ever airline mergers, unless the federal government takes definitive action to reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of vital public assets such as landing and takeoff slots and other facilities to the remaining healthy affordable-fare carriers, testified Joseph Leonard, Chairman and Chief Executive Officer of AirTran Airways AirTran Airways is a low-cost airline that is a Delaware corporation with headquarters in Orlando, Florida, USA and is a subsidiary of AirTran Holdings. AirTran operates over 750 daily flights throughout the eastern USA and the Midwest, including over 270 daily departures from last Thursday. Testifying before the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Senate Commerce Committee, alongside the architects of some of the largest proposed airline mergers in U.S. history, Leonard told U.S. Senators that "unless the Congress and/or the Executive Branch takes decisive action soon, then by the end of the year this party will be over. The consolidation agreements will be virtually complete in a legal sense, labor agreements for merging carriers will be under negotiation, and consumers had better fasten their seat belts - they will be in for a very rough ride and a very hard landing." Making it clear that AirTran Airways does not oppose airline mergers and consolidations, Leonard also stated that the consolidations, as necessary as they might be to occur, "cannot proceed without accommodation for low-cost competition." Noting that low-fare carriers such as AirTran Airways and Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest. Southwest Airlines Co. do produce low-fare competition, it sometimes is airport-specific, such as the case with a comparison of fares out of Baltimore/Washington International and Reagan Washington National airports. For example, Southwest may sell a roundtrip "walkup walk·up also walk-up n. 1. An apartment house or office building with no elevator. 2. An apartment or office in a building with no elevator. " fare between Baltimore and Hartford for approximately $120, "but Southwest's fares have in no way stopped US Airways from charging $628.50 for that same ticket" from Washington National, Leonard noted. "That $500 premium reflects the importance of National as a unique facility precisely because access is controlled by reason of government licensing of access - slots. "If the government - whether it be the Department of Justice in its antitrust review, or the Department of Transportation deciding to sit on its rights and do nothing - permits the American/United combination in the form proposed, those kinds of premium fares will be the name of the game in the Northeast," Leonard declared. Systemwide, AirTran Airways operates 310 daily departures to 34 cities. Offering the convenience of easy, same-concourse connections in Atlanta, AirTran Airways operates 137 daily departures from Hartsfield Atlanta International Airport, the world's busiest airport World's busiest airport is a claim that is fiercely fought over by the owners of the world's largest airports. The definition of "busiest" is debated as well, with claims being staked on the basis of aircraft operations, cargo traffic or total passengers. . 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 and most environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] commercial aircraft. AirTran Airways is a subsidiary of AirTran Holdings, Inc. (AMEX AMEX See: American Stock Exchange : AAI AAI American Association of Immunologists. ). For more information and reservations, visit AirTran Airways' Web site at www.airtran.com (America Online Keyword: AirTran), call your travel agent or call AirTran Airways at 800-AIRTRAN (800-247-8726) or 770-994-8258 (in Atlanta). Note: A Photo is available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com/cgi-bin/photo.cgi?pw.020501/bb3 |
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