Flights of Inspiration

BY MILES KRAINER

In honor of AirTran Airways’ 15th ANNIVERSARY, we look back on our past successes and plan for the future.

AirTran Airways is celebrating its 15th anniversary this fall, toasting a decade and a half of making air travel more affordable to more people in more places all across America. From humble beginnings, AirTran Airways has grown into a Fortune 1000 company providing business and leisure travelers with award-winning service on more than 700 daily flights.

It may be hard to imagine AirTran Airways as a startup, but that’s just what the airline was 15 years ago. Th e company’s story officially began on October 26, 1993, when a new carrier then known as ValuJet Airlines launched service between Atlanta and three Florida cities.

With competitive low fares and fun, friendly service, the brash newcomer dared to challenge the entrenched incumbent carriers that then dominated service at one of the world’s busiest airports—Hartsfield-Jackson Atlanta International Airport.

Innovative and committed to low costs and affordable fares, the upstart carrier began with ticketless service, saving millions of dollars in administrative costs. Customers were issued only confirmation numbers, without any paper tickets.

As AirTran Airways Chairman, President and CEO Bob Fornaro describes, “Th e airline started out with a ticketless system unlike anything at the time. It was innovative, efficient and cost-effective. It also showed, from day one, that this was a different kind of carrier—a leader, not a follower.”

The new airline was an overnight sensation. Travelers couldn’t get enough of the low fares and the savings over other carriers. Soon, the reservations lines were jammed, the planes were filled, and the airline had to move quickly to catch up with demand. Aft er eight months, the carrier went public with a listing on the NASDAQ stock exchange.

In 1995, the company placed the first order for an advanced, efficient airplane that would become the Boeing 717. Th e fledgling carrier became the youngest launch customer in history and provided significant input into the 717’s design and features.

It was a bold, fortuitous move. As Fornaro explains, “The decision to buy the 717 was among the most important in our history. Even now, the aircraft continues to deliver tremendous cost advantages that we’re able to pass on to customers.” The Boeing 717 would become the workhorse of the AirTran Airways fleet. With a configuration of 105 main cabin seats and 12 in Business Class, the 717 had just the right size and range to meet customer needs. It was also far more efficient than the planes it replaced, reducing fuel costs by 25% and proving to be the most advanced jetliner in the skies.

Meanwhile, as ValuJet’s success was growing in Atlanta, the original AirTran Airways was expanding in Orlando, eventually serving leisure travelers in 24 cities in the East and Midwest. In 1997, the two carriers announced plans to merge, forming AirTran Airways.

A year later, the company welcomed a new management team. Eastern Air Lines veteran Joe Leonard became chairman and CEO, and Bob Fornaro, formerly of US Airways, came on board as president and COO. The two men formed a powerful leadership tandem that kept the young airline moving forward.

Leonard and Fornaro drew inspiration from AirTran Airways’ Crew Members. “Joe and I had both been around the block in this business. We thought we knew what to expect,” Fornaro says. “But, when we actually got started, we couldn’t believe the Crew Members’ spirit and dedication to customer service. It was a perfect fit.”

In subsequent years, Leonard worked to improve operating efficiencies while Fornaro focused on building a larger but sustainable route network. AirTran Airways continued to prosper as more and more air travelers discovered the airline’s low-fare, high-value service. Th e company’s Atlanta hub grew substantially, service expanded in key focus cities, and the overall route map extended far and wide.

In time, AirTran Airways became one of only a handful of consistently profitable airlines. Fornaro credits Crew Members with invaluable leadership. “Our people have always had an entrepreneurial spirit, and we listen to them,” he says. “In fact, many of our best ideas have come from our Crew Members.”

In 2003, the airline again made history, placing an order for 110 new Boeing aircraft . The following year, AirTran Airways began taking delivery of the new Boeing 737-700, building North America’s youngest all-Boeing fleet and a competitive advantage in comfort, quality and cost. The 737 helped the company add new longer-haul flights and expand into a truly national low-cost carrier. “The 737 gives us most of the same efficiencies as the 717, along with added range and 20 more seats,” Fornaro explains. “It has opened up a lot of opportunities.”

Throughout its history, AirTran Airways has created new customers in each new market it has added, extending the benefits of discount flying to more and more people. As Fornaro says, “With our low fares, we don’t just take traffic from others. We also create our own by bringing people to the airport who would otherwise have driven or stayed at home.”

Today, AirTran Airways is an industry leader and the go-to airline for both business and leisure travelers. The once regional carrier has gone national, serving more than 50 destinations. And its A+ Rewards program is among the most generous and innovative frequent flier programs in the business, with faster free travel awards and the opportunity to earn flights on other airlines to destinations not yet served by the carrier.

AirTran Airways also continues to bring home its share of awards. Th is year, the airline achieved the No. 1 ranking in the Airline Quality Rating report, an independent comparison of on-time performance, mishandled baggage reports, denied boardings and customer complaints. In 2006, the airline was named Best Airline Value by Entrepreneur magazine, which credited AirTran Airways with improving business travel across the industry with the competitive pressure of lower fares and reduced restrictions.

Despite all the changes of the last 15 years, AirTran Airways has maintained a strong entrepreneurial spirit and an eagerness to try new things.

“As we begin the next 15 years, we’re going to stay nimble and keep making the kind of unconventional, forward-looking decisions that have served us so well,” Fornaro says. “We have a lot of very loyal and enthusiastic customers, and our Crew Members really set us apart. Just as there’s nothing stopping our passengers, there’s nothing stopping the success of AirTran Airways.”