Airtran 2005 Annual Report Download - page 6

ANNUAL REPORT PG 04
:: Letter from Joe and Bob
Dear Shareholders,
People in the industry often wonder how we do it. How do we
manage to figure out what competitors two and three times
our size can’t? How are we named the best low-fare airline
by Entrepreneur Magazine five times?
How do we manage to remain profitable for seven consecutive
years? While other airlines are cutting back, how do we break
new ground in Charlotte, Richmond, Indianapolis and Detroit?
So if you’re one of those people, here’s a little insight into
how it works.
It all starts internally. We’re dedicated to having one of the
premiere management-labor relationships in the industry. In
2005, The International Brotherhood of Teamsters ratified a
new contract agreement; while uncommon for airlines to
reach a new agreement before the amendable date, it’s
becoming routine for Local 528 and AirTran Airways. We also
reached contract agreements with the Association of Flight
Attendants-CWA, AFL-CIO. Better still, we were able to
welcome 1,100 brand-new, friendly Crew Members to the
AirTran Airways fold.
We implemented SMILE, a customer service-focused, inter-
action program for our Crew Members that touts our dedication
and unwavering willingness to deliver a one-of-a-kind travel
experience to every flier, on every flight. And since our Crew
Members are cross-trained to maximize productivity, we stay
even more profitable. Our managers also refined their people
skills, completing courses in the Ritz Carlton Leadership
Center Training Program.
Then there are the more tangible things that make it work.
Under the bright lights of Las Vegas’ Caesar’s Palace, Elton
John helped us unveil the livery that adorned his likeness to
promote our brand new XM Satellite Radio. Soon after,
AirTran Airways became the first airline to install the
technology, boasting 100 channels of news, sports, music
and more. It’s now on all our planes.
We also took delivery of our 100th new plane, making the
average age of our planes approximately four years young. It
also made us the fastest airline in history to reach 100 planes.
And while we’re on the subject of our planes, our modern
all-Boeing fleet continues to keep us a cost-effective airline.
Their reliability, performance, range and ability to operate
economically, make them the perfect fit for our low-cost
business model.
As usual, we continue to offer the most affordable Business
Class on every flight, assigned seating, spacious EasyFit
overhead bins, oversized RECARO seats in our 737s (yes, the
same as they have in Porsches) and online check-in which
keeps our customers happy.
What makes us happy is the near-infinite amount of oppor-
tunities the Boeing 737 presents. First, it allows us to serve
longer haul markets. Secondly, by using only two aircraft
from the same manufacturer, we’ve created tremendous
efficiencies. All this will add to our significant growth plan
in the future, especially as we increase our fleet of 737s year
after year through 2010. Ultimately this will put us in an
outstanding position to be an industry leader.
Growth will come in other shapes and forms. As other carriers
reduce capacity and service in markets, AirTran Airways will
be there to add new routes and increase frequency. Recently,
we’ve added key business routes from Chicago, which
include Boston, Minneapolis/St. Paul, Dallas/Ft. Worth,
Charlotte and New York/Newark meeting the needs of
business travelers and leisure travelers alike, and at our
everyday low fares.
We’ll also grow by developing current markets. Atlanta, for
example, has experienced remarkable growth and is now one
of the nation’s largest hubs. We will continue to evolve
and build our route network by increasing the number of
destinations in existing markets.
Making it work also means creating new partnership oppor-
tunities. Especially when we partner with worldwide brands
like Wendy’s and Coca-Cola. A recent promotion led to some
amazing PR for AirTran Airways. We’re also the first airline in
the world to board Coca-Cola Lime, Coca-Cola Zero and Black
Cherry Vanilla Coke, allowing our customers the opportunity
to try Coke’s new products before they buy in the store.
Lest we forget, our corporate partnerships also keep us flying.
One of our proudest feats was being a presenting sponsor of
the Georgia Aquarium. AirTran Airways is Atlanta. And, it