Airtran 2000 Annual Report Download - page 19

AirTran Airways has earned a position as a leader in airline Internet bookings. While most airlines do not achieve double-digit Internet sales, by year-end
approximately 32 percent of our reservations were booked via the airline’s Web site, airtran.com. AirTran Airways also receives an additional five percent
of its total bookings from virtual travel agencies, such as Expedia and Travelocity. With about one out of every three reservations booked on the Internet,
AirTran Airways has seen a dramatic positive change in our distribution channels.
As recently as 1997, 92 percent of AirTran Airways’ passenger bookings came directly through our toll-free Reservation Sales, while eight percent came
through travel agents. By the end of the fourth quarter 2000, approximately 38 percent of total passenger bookings came through the Internet, 23 percent
came through toll-free Reservation Sales, and 39 percent were placed through travel agents. The Company’s leadership position in online sales is significant
beyond the important implications for AirTran Airways as an industry innovator. Internet booking has a direct and substantial benefit in cost per transaction.
Traditional methods of sales, such as travel agents, can cost as much as $10.00 per transaction, while sales via the Internet cost only about $.50 per
transaction. The more sales transacted via the Internet, the better for AirTran Airways’ operating margin. Capitalizing on overwhelmingly positive consumer
response to our Web site, AirTran Airways continued to send its weekly permission-based e-mail, NetEscapes. In the last year, the number of NetEscapes
subscribers nearly doubled, reaching 714,000. Another Internet innovation for our customers is the ability to download flight schedules onto Palm PDAs
from our Web site. All these efforts build our online connection to a rapidly growing customer base.
AirTran Airways’ marketing partnerships with American Express and The Hertz Corporation provide tremendous support to our success. With American
Express as an exclusive partner in our A-Plus Rewards®program, the airline significantly expanded our highly valued base of business travelers. This
partnership brought the airline more new business fliers than any other single partnership. In 2000, AirTran Airways also expanded our partnership with
The Hertz Corporation by giving them exclusivity on airtran.com, enabling travelers booking air travel via airtran.com to link directly to Hertz’s Web site.
In 2000, Delta Air Lines, Trans World Airlines, United Airlines, US Airways and American Trans Air recognized AirTran Airways’ arrival as an undeniable
presence in the industry by signing interline ticket and baggage agreements with us. These agreements allow AirTran Airways to issue tickets on the other
carriers’ routes (and vice versa) and provide for the seamless transfer of baggage from one carrier to another. The agreements also provide for passenger
re-accommodation in the event of irregular operations, minimizing travel disruptions for customers even during the most challenging situations.
The number of business travelers and corporate contracts continued to increase for the airline in 2000. Corporate customers demand more than
low fares. Quality, value and service are key criteria in their air-travel choice. With innovations such as our affordable Business Class, AirTran Airways stands
apart from typical low-fare carriers. Business Class has grown in popularity, as evidenced by its increase in usage from 685,000 enplanements in 1999 to
850,000 in 2000. Further enhancing our value to the business flier, AirTran Airways implemented our A2B Corporate Travel Program, which meets the needs
of today’s cost-conscious business traveler. A2B is a flexible travel program without the rules and restrictions of the major airlines’ programs. Through A2B,
AirTran Airways offers customers business fares that are lower than most corporate fares negotiated with major airlines. By year-end 2000, AirTran Airways
had approximately 1,900 signed corporate accounts as compared to 1,000 in 1999. These programs are made even more effective thanks to the growing
support the airline continues to receive from travel agents, still an extremely valuable link between the airline and business fliers.