Wednesday, August 09, 2006

Air Tran's New Florida Strategy

Orlando based Air Tran Airways is the largest airline based in the state of Florida. In this capacity, Air Tran is the successor to a proud legacy of Florida based carriers including Eastern, Pan Am, National and Air Florida.Air Tran, like Eastern has its major hub in Atlanta, and now like Eastern before it is linking popular Florida destinations with major cities of the north by flying over Atlanta. Previously, Air Tran avoided competition by flying from Orlando, Tampa, Ft Myers and Fort Lauderdale to second tier markets of northeast and midwest like Akron/Canton, Flint, Rochester and Milwaukee. Travel to major cities was routed via the Atlanta hub.

However, now with Delta Airlines continuing to struggle (despite turning a modest 2006 Q2 profit), Air Tran has decided to link the four aforementioned Florida cities with Boston and Detroit nonstop. Also, new nonstop service will begin soon from Orlando to Washington National, and Air Tran has already begun serving Chicago Midway nonstop from Orlando and Sarasota/Bradenton.These new flights represent a major shift in Air Tran's cautious, slow growth strategy of the past few years. That strategy helped make Air Tran one of the few profitable airlines in the country post 9/11. With the exception of a full fledged frontal assault on Delta in Atlanta (where Air Tran seems to be winning the battle), the airline has avoided competition with major airlines by flying to secondary markets that typically receive no major airline nonstop service. Now, Air Tran is taking direct assault on Jet Blue, Southwest and Spirit Airlines with its new service.If Air Tran continues to follow this new strategy, the airline's route map will look more and more like that of the defunct Eastern Airlines and will be a worthy successor as Florida's airline.

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