Airtran 2010 Annual Report Download - page 13

Offer Sales through Our Web site. We utilize the Internet as an integral part of our distribution network and emphasize our
Web site, airtran.com, prominently in all of our marketing. Sales booked directly on airtran.com represent our largest and
most cost-effective form of distribution. In addition to being user-friendly and simple, our Web site is designed to sell
tickets efficiently. We have added functionality to airtran.com that allows customers to easily book and manage their
travel including the ability to retrieve and change future flight reservations, make seat selection and check-in online. We
also offer alternate forms of payment, including Bill Me Later, PayPal, and PaySecure by Acculynk, in order to ensure we
are meeting our customers’ needs. Sales through airtran.com produced 55 percent of our revenues during 2010.
Utilize New and Modern Fleet. Our entire fleet is comprised of B717 and B737 aircraft. We had a combined total of 138
aircraft on December 31, 2010, with an average fleet age among the lowest in the industry at 7.5 years.
We were the launch customer for the B717 in 1999, which was designed specifically for efficient short-haul service. As of
January 31, 2011, our fleet included 86 B717 aircraft. Although Boeing discontinued the production of the aircraft in
2006, we believe the B717 remains well suited for the short-haul, high-frequency service that we operate and provides
operating efficiencies which support our low cost structure. AirTran has a commitment to lease two additional used B717
aircraft from Boeing. Those leases are expected to commence in February 2011.
We took delivery of our first B737 aircraft in June 2004 and, as of January 31, 2011, our fleet included 52 B737 aircraft.
In addition to our existing 52 B737 aircraft, we hold firm orders for 51 additional B737 aircraft to be delivered between
2011 and 2017. We also hold one option to purchase one B737 in the fourth quarter of 2012. We believe the B737 is an
ideal complement to our B717 aircraft, offering us a larger aircraft, increased range, and even lower operating cost per
available seat mile flown. The B737 aircraft has allowed us to extend our network to selected cities in the western United
States and gives us the ability to expand our international operations to additional locations in the Caribbean and Mexico
as well as locations in Canada and Central America should we choose to do so. We believe the B737 aircraft enhances the
AirTran Airways brand while offering improvements in our operating performance.
Seasonality
Our financial and operating results for any interim period are not necessarily indicative of those for the entire year. Air
travel in our markets tends to be seasonal, with the highest levels occurring during the winter months to Florida and the
summer months to the northeastern and western United States. The second quarter tends to be our strongest revenue
quarter. Advertising and promotional expenses may be greater in lower traffic periods, as well as when we enter a new
market, if we seek to stimulate demand and promote the AirTran Airways brand through such activities.
Competitive Strengths
Low Cost Structure. Our cost structure ranks among the lowest in the domestic airline industry in terms of cost per
available seat mile, providing a competitive advantage compared to higher cost carriers. Our low operating costs are made
possible through a company-wide focus on cost controls with an emphasis on high labor productivity, lower distribution
costs, and higher asset utilization. In addition, we realize efficiencies from the operation of only two aircraft types from a
single manufacturer as well as enhanced efficiencies as we increase the number of new modern B737 aircraft in our fleet.
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