DALLAS -- With confetti cannons, high-fives and a band playing Bob Marley's One Love, Southwest Airlines and AirTran Airways officially closed their $1 billion deal Monday.
"The deal is done," Southwest CEO Gary Kelly announced to the crowd gathered at Dallas Love Field. "AirTran is now part of Southwest Airlines."For now, the two carriers will operate separately until Southwest receives a single operating certificate from the Federal Aviation Administration.AirTran shareholders will receive $1 billion in cash and Southwest shares. Including AirTran's debt and aircraft lease obligations, Southwest said the deal is valued at $3.2 billion.Kelly and AirTran CEO Bob Fornaro signed a ceremonial document to signify the closing of the deal as employees banged together noise sticks that said "Southwest AirTran" and "One LUV 2011.""AirTran is thrilled to join the Southwest family today," Fornaro said to the crowd as he presented Kelly with a large painting that showcased an AirTran plane in front of several Atlanta attractions along with a Southwest plane flying above the city.With the acquisition, Southwest becomes 25 percent larger and will serve Atlanta's Hartsfield-Jackson Airport and several international destinations. It also enables Southwest to serve Reagan National Airport in Washington, D.C., which is at capacity.Southwest said that it expects $400 million in annual cost savings by 2013 and that one-time costs related to the acquisition are estimated at about $500 million."Now we can get to the work in earnest to begin the transition to bring AirTran into Southwest," Kelly said.He said Southwest does not plan to drop AirTran routes other than at Dallas/Fort Worth Airport. Kelly said operations at D/FW will wind down so Southwest does not have to give up gates at Love Field per the Wright Amendment.After the signing, the executives boarded an AirTran plane and flew to Atlanta for a similar celebration at an AirTran maintenance facility.Andrea Ahles, 817-390-7613|
Category |
Southwest |
AirTran |
Combined |
|
Employees |
34,636 |
8,083 |
42,719 |
|
Aircraft |
547 |
138 |
685 |
|
2010 revenues |
$12.1 billion |
$2.6 billion |
$14.7 billion |
|
2010 income |
$459.0 million |
$38.5 million |
$497.5 million |
Source: Southwest, AirTran
Southwest's busiest airports, in daily flights, after the merger:
Las Vegas: 230
Chicago Midway: 228
Baltimore/Washington: 222
Atlanta: 202
Phoenix: 180
Denver: 148
Houston Hobby: 135
Orlando: 132
Dallas Love Field: 128
Los Angeles: 121
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