AirTran Responds to Department of Transportation's Position On Predatory Pricing.

ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 17, 1998--AirTran Holdings, Inc. (Nasdaq:AAIR) President and Chief Executive Officer, D. Joseph Corr reviewed the airline's recent history and future outlook last evening, during a presentation to the Long Beach Management Club. Among issues discussed, Corr told the audience that the company believes as a result of intense lobbying by major airlines, the Department of Transportation (DOT) has completely abandoned its predatory pricing guidelines.

"It appears that the DOT is refusing to investigate the most egregious predatory pricing practices by major carriers clearly designed to drive affordable fare airlines from the market," said Corr. "The message to major carriers from the DOT is resoundingly clear -- it is now open season on carriers providing affordable fares and the DOT will dismiss any complaints of anti-competitive practices from these carriers as `whining'."

This about face by the DOT has had a dramatic impact on AirTran's business. Prior to the DOT's total capitulation, AirTran was on plan for a solidly profitable year. Beginning in June, predatory pricing by our major competitor has now cast serious doubt on whether the airline will be profitable for the year. So dramatic was this action by our major competitor that it has destroyed our opportunity for a profitable third quarter.

In response to this change in our market, we are redeploying our assets into markets that typically produce high traffic volumes and relatively high fares for both AirTran and our principal competitor. These types of markets present the greatest opportunity to mitigate the impact of predatory activities on our profitability. To the extent that our competitor continues to pursue predatory strategies, AirTran believes that such strategies will negatively impact their bottom line.

AirTran is the second largest airline serving Atlanta, and recently announced a further expansion of service this fall. With the planned expansion, AirTran will be operating over 130 daily departures from Atlanta to 30 cities by October 1998. Additionally, AirTran offers the convenience of easy, same concourse connections in Atlanta.

AirTran, recipient of Entrepreneur magazine's 1998 award for "Best Domestic Low-Fare Airline," provides full service, everyday affordable air travel throughout the eastern United States and Midwest. Unlike other airlines, AirTran never requires a roundtrip purchase or Saturday night stay. Currently operating a fleet of 50 jet aircraft, AirTran is the launch customer for the new Boeing 717 with a firm order of 50 aircraft and options for another 50. Delivery of these aircraft commences next summer. For more information and flight reservations, call your travel agent, 800-AIRTRAN (800-247-8726), 770-994-8258 (in Atlanta), or visit the AirTran website at www.airtran.com.

Editor's note: Statements regarding the Company's prospects and future profitability projections, are forward looking statements and are 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.