With the purchase of AirTran Holdings , Southwest Airlines The potential gains in Atlanta, the busiest airport in the United States and Washington DC Ronald Reagan National Airport , New York LaGuardia and Boston Logan. Southwest also get access to the Caribbean and Mexico.
AirTran Southwest purchased for about $ 1.4 billion in the aggregate, including AirTran outstanding convertible bonds. The acquisition is approximately 3.4 billion U.S. dollars, taking into account the debt of AirTran and capitalized operating leases of aircraft.
Southwest shares have risen more than 4% last week.
Through the acquisition of AirTran and footprint of the improvement in Atlanta, Southwest currently has the potential to earn more than two million new passengers and more than $ 200 million in consumer savings per year, according to an analysis of Campbell- Hill Aviation Group.
The combined company will serve more than 100 million customers annually in over 100 different airports. Before the merger, Southwest had 34,636 employees, 544 aircraft, 461 routes and provide nonstop service from 69 cities. AirTran small service the same number of cities, but had 8,083 employees, 138 aircraft and 177 non-stop routes.
The companies anticipate net synergies of over $ 400 million by 2013 and time costs of the acquisition and integration are expected to be between $ 300 million and $ 500 million.
Southwest previously announced it was evaluating the possibility of including Boeing (BA - news - people) 's 737-800 to its fleet. The company currently has 345 737-700 25 737-500s and 172 737-300s.
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