Airtran 2010 Annual Report Download - page 48

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• Partnered with American Express OPEN™ and the OPEN Savings™ program whereby American Express OPEN
card holders are eligible for a discount on all of our more than 700 daily flights; and
• Unveiled two new special livery Boeing 717 aircraft highlighting our partnership with the Milwaukee Brewers
and the Wizarding World of Harry Potter at Universal Studios Orlando.
2011 Outlook
We expect to face challenges during 2011. Managing costs and increasing unit revenues in the face of volatile fuel costs
and an uncertain economic recovery will continue to be a primary focus. Fuel prices remain volatile and may again
increase during 2011. The proposed acquisition of AirTran by Southwest has caused an increase in legal and other
consulting and advisory expenses. While we have been able to effectively manage costs and increase unit revenues, the
pace and extent of the continuing economic recovery and growth of airline industry revenue are uncertain in the context of
gradually improving but still generally unfavorable macroeconomic conditions.
Our pilots’ collective bargaining agreement was ratified in November 2010 and becomes amendable in December 2015.
This new agreement with increased wages and benefits took effect as of December 1, 2010. Our flight attendants’
collective bargaining agreement became amendable in December 2008. Negotiations regarding proposed amendments to
the flight attendants’ collective bargaining agreement are currently in mediation under the auspices of the National
Mediation Board. The impact on our operating results of any new collective bargaining agreements is not known.
We expect our non-fuel unit costs (as measured by cost per available seat mile) to rise again in 2011 but at a slower rate
than the last two years.
If consummated, the proposed acquisition of AirTran by Southwest will have material impacts on the liquidity, sources
and uses of liquidity, operating results, financial commitments, and financial position of AirTran.
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.
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