AirTran Shares What Sets it Apart
AirTran Airways has been able to succeed in the troubled airline industry because it knows how to run its operations efficiently and has supportive communities, including the Akron-Canton region, the airline's chief executive officer and chairman, Joe Leonard, said Thursday.
The Orlando, Fla.-based airline just started its 10th year of service at the Akron-Canton Airport. AirTran started with one daily flight out of the airport and now has 13 daily flights to eight destinations. The airport is one of only five in the AirTran network outside of its Atlanta hub that serves more than seven destinations. The other airports are in Baltimore, Indianapolis, Orlando and Tampa, Fla.
The success of the low-cost carrier and the airport extends beyond the local travelers, said Leonard.
``Busy airports are engines for economic growth,'' Leonard told a crowd of about 450 people at an Akron Roundtable speech at the Tangier restaurant on Thursday.
Leonard was the second roundtable speaker in a series of speeches looking at ``Success through Regionalism.''
AirTran is one of two airlines that made a profit for the last seven consecutive years. The other is Southwest Airlines.
Leonard mentioned several things that help make AirTran more efficient than the so-called legacy carriers such as United, Delta Air Lines and American:
The airline has reduced its nonfuel costs every year. AirTran's costs are 50 percent lower than one of its main competitors, Delta.
AirTran's nonfuel costs are lower than Southwest Airlines. ``Anytime you're in Southwest's company, you're doing well,'' he said.
AirTran has the youngest all-Boeing fleet in the industry with 105 planes. Having the newest technology and newer airplanes means better fuel efficiency, said Leonard. The airline's 717 airplanes, which replaced its DC-9s, burn 23 percent less fuel and carry more passengers. In this era of record jet fuel costs, that makes a big difference, he said.
The company's 737 fleet is growing. The bigger airplanes seat more than the 717s (137 and 117 passengers, respectively), but still have the same size crew of three flight attendants and two pilots.
The airline is efficient in its airport facilities. While the Akron-Canton Airport is getting ready to unveil new gates, including some for AirTran, it will continue to use three gates for its 13 daily flights a day.
AirTran also gets more use out of its planes. A flight may leave Akron for Orlando, then go to New York, then back to its Atlanta hub, said Leonard. On average, AirTran uses its airplanes 11 hours a day, compared with 9 ½ hours for legacy carriers, he said.
The airline saves money on ticket distribution costs. Seventy percent of all tickets are purchased by consumers directly through AirTran -- 60 percent on its Web site and 10 percent through its call center. Leonard said the company also makes sure to continue to give value to its customers -- travelers are not charged extra to book a ticket through the company's call center or at its ticket counters.
AirTran's success in the Akron region is because of the airline, airport leadership such as Director Fred Krum and the travelers, Leonard said.
AirTran uses Akron-Canton's story in all of its financial presentations, he added.
``We have a great partnership with Fred and his team. It really shows what can be done,'' he said. ``We use Akron-Canton in every one as a huge success story. This shows how you can develop a middle-sized city.''
During a question-and-answer period after Leonard's speech, he was asked how the Akron region should tout itself to other companies.
``I'm here selling AirTran and we're sold on the benefits of this region. Get out and tell your story,'' he said. ``You have a tremendous region with tremendous universities and a tremendous educational system.''
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