Airtran 2009 Annual Report Download - page 15

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Innovative Marketing. Our marketing efforts target both business and leisure travelers. We have developed a
number of unique and innovative programs designed to stimulate demand for travel, create customer loyalty,
highlight our unique product attributes, like affordable Business Class, and target both business and leisure
travelers. Our popular leisure programs include Net Escapes Internet specials and the AirTran U student travel
program. Our A2B Corporate Program and EventSavers Meetings & Conventions Program effectively attract
and retain business customers. During 2009, we introduced wireless, broadband Internet access on every flight
including: Web, e-mail, instant messaging and access to corporate e-mail and network systems (virtual private
networks) through passengers’ Wi-Fi enabled mobile communication and information devices including mobile
computers, and mobile phones.
A+ Rewards. Our A+ Rewards frequent flyer program offers a number of ways to earn free travel including the
use of the AirTran VISA card, Hertz car rentals, and bonus earnings for Business Class travel. We believe this
program creates brand loyalty and provides opportunities for incremental revenue through credit sales and
partnerships.
In March 2008, we announced new features to our A+ Rewards program. A+ Rewards members can now
purchase A+ Rewards credits, extend the expiration of A+ credits, or give A+ credits to another member to help
earn a free flight faster. During the fourth quarter of 2007, we announced that A+ Rewards credits earned after
November 13, 2007, by holders of our AirTran VISA card and our elite A+ Rewards members, would have a
two-year expiration date instead of the one-year expiration date for general members.
Competition
The airline industry is highly competitive. Airlines compete on the basis of markets served, price, schedule
(frequency and flight times), quality of service, amenities, frequent flyer programs, and other services. We
compete with other airlines primarily on the basis of price, which is made possible by our low cost structure
relative to other airlines and by focusing on selected markets across the United States. We may face greater
competition from existing or new carriers in the future that could negatively impact our financial and operating
results.
Competitors with greater liquidity and access to capital or with a broader network may price their fares at or
below our fares or increase the frequency of their service. This competition could prevent us from attaining a
share of the passenger traffic necessary to sustain profitable operations in one or more markets. Our ability to
meet price competition is dependent, in part, on operating with costs equal to, or lower than our competitors or
potential competitors.
We believe that our competitive strengths are our low cost structure, friendly service, competitive fares, and
strong route network anchored by our hub at Hartsfield-Jackson Atlanta International Airport. We believe that
our brand and our presence in Baltimore/Washington, Milwaukee, Orlando, and a number of other Florida
markets augment operations from our Atlanta hub and provide us with a strong and defensible route system.
Route System, Scheduling, Fares, and Market Selection
Our route system extends from coast to coast in the United States as well as to selected destinations in Mexico
and the Caribbean. The majority of markets we currently serve are located in the eastern United States. These
markets are attractive due to the concentration of major population centers within relatively short distances from
our hub and focus cities, the historically high airfares charged by our competitors in these markets, and the
significant number of both current and potential business and leisure customers.