CEO: AirTran expansion planned

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CEO: AirTran expansion planned

MINNEAPOLIS (AP) =97 While major airlines are slashing costs after losing=20
$3.6 billion in the first quarter, AirTran Airways CEO Joe Leonard is=20
expanding service and making plans to acquire at least 50 and as many as=20
100 new airplanes. The low-fare carrier made $10.7 million last year, and=20
Leonard wants to expand the Florida-based company by 25 percent a year.=20
Leonard, who has a home in Forest Lake, Minn., talked about the airline's=20
success in a speech in Andover at a MetroNorth Chamber of Commerce luncheon=
=20
last week and in a later Star Tribune interview, published Monday. AirTran=
=20
is based in Orlando, Fla., but has its major hub in Atlanta. It serves 43=20
cities, having expanded into the Western United States last week by=20
beginning nonstop service to Denver, and it plans to add flights to Los=20
Angeles and Las Vegas in June. AirTran currently is meeting with Airbus and=
=20
Boeing because Leonard wants to add a new plane type to the fleet =97 either=
=20
the Boeing 737 or the Airbus A319. "To give you an idea of how optimistic=20
we are, the airplane deal that we are talking about is for 100 airplanes =97=
=20
50 firm orders and 50 options" to acquire planes, Leonard said. AirTran=20
wants the type of plane that's suitable for coast-to-coast flights. Leonard=
=20
expects to choose between Airbus and Boeing this summer and then start=20
taking delivery on the new planes in June 2004. The new planes are expected=
=20
to arrive at the rate of one per month over 50 months. AirTran's fleet is=20
dominated by new Boeing 717s, which seat 105 in coach class and 12 in=20
business class. By year's end, AirTran will phase out a few remaining DC-9s=
=20
and have a fleet of 73 Boeing 717s.

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