Airtran 2001 Annual Report Download - page 12

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Operating expenses per ASM for 2001
and
20CXJ
were as follows:
2001
(
1)
2000 Percent Change
Salaries, wages
and
benefits
2.43C
2.34C
3.8%
Aircraft fuel
2.13
2.40 (11.3)
Maintenance. materials and repairs
1.05
1.25 (16.0)
Distribution
0.69
0.68
1.5
Landing fees
and
other rents
0.55
0.49
12.2
Marketing and advertising
0.28
0.28
Aircraft rent
0.54
0.22 145.5
Depreciation
0.43
0.39 10.3
Other operating
1.23
1.22 0.8
Total CASM
9.33C
9.27c
0.6%
(1)
CASM
figures
above
were
~ted
to
exclude
the following specl3lllems:
Impaarment lossIIease lermnatlOn
of
$46.1
1TiIion.
special charges of $2.5 milion
and
agovernment grant
of
$29.0 million.
Salaries. wages
and
benefits increased $21.7million (15.8 percent overall
or
3.8 percent
on
aCASM basis) primarily
due
to
increases
in
the
number
of
employees
to
support
our
year-aver-year growth,
in
addition
to
contractual wage
and
benefit increases for our employee groups represented by
labor unions.
Aircraft fuel expense, including fuel-hedging activities, decreased $1.0 million (0.7 percent overall
or
11.3
percent on aCASM basis) primarily due
to
a7.0 percent decrease
in
the average price per gallon
of
aircraft fuel, offset by a6.5 percent increase
in
the quantity
of
fuel
consumed
in
our flight
operations. Our average price per gallon of aircraft fuel. including all fees and taxes. was 93.85 cents in 2001 compared to 100.89 cents
in
2000.
The 2001 and 2000 prices are net
of
$(2.5) million and
$5.1
million
in
hedging gains (losses), respectively. The improvement
in
aircraft fuel CASM
reflects the increased number
of
B717 aircraft and the retirement
of
DC-9 and B737 aircraft during 2001.
Maintenance. materials and repairs decreased $4.6 million (6.2 percent overall
or
16.0 percent on aCASM basis) primarily due
to
fewer DC-9 and
B737 airframe and engine repairs performed
in
accordance with our maintenance schedule. The timing
of
maintenance
to
be performed is predomi-
nantly determined by the
number
of
hours the aircraft and engines are operated and their age. During 2001.
we
retired the
8737
aircraft type from
our operating fleet
in
addition
to
four
DC-9
aircraft. The composition
of
our aircraft neet continued
to
shift towards agreater percentage
of
new
B717
aircraft which generally require less costly
and
less frequent scheduled maintenance.
Distribution expenses increased $5.4 million (13.6 percent overall
or
1.5
percent
on
aCASM basis) primarily
due
to
ahigher volume
of
transactions
incurring
computer
reservations system (CRS) fees.
Our
enplanement increase
of
9.7 percent
and
$43.7 million growth in passenger revenues gener-
ally correlated
to
agreater amount
of
sales subject
to
credit card transaction fees
and
sales commissions. Credit card and commission expenses were
up
10.6 percent
and
6.2
percent.
respectively.
Landing fees and other rents increased
$6.9
million
(24.1
percent overall
or
12.2 percent
on
aCASM basis) primarily
due
to
our operations growth, in
terms
of
both
the
number
of
cities served and total departures.
service
to
four
new
cities was introduced in 2()()(): Grand Bahama Island, Minneapolis!
St. Paul, Pittsburgh
and
Toledo; three
new
cities were introduced
in
2001: BaltimorelWashington, Pensacola
and
Tallahassee. Our facilities rent increased
85.0
million, asignificant portion
of
which came from the
new
cities we served.
Our
expanded operations generated an 8.8 percent increase in the
level
of
departures, which in turn raised our landing fees
by
$2.2 million.
Marketing
and
advertising expenses grew by
52.1
million (12.5 percent overall.
but
flat on aCASM basis)
as
we
increased
our
promotional activity to
support
our
inauguration
of
service
to
three
new
cities.
Aircraft rent increased $22.7 million (180.3 percent overall
or
145.5 percent
on
aCASM basis) as aresult
of
the lease financing
of
new
B717 aircraft.
During 2001.
we
introduced one
new
8717 aircraft per month into our fleet, until December when three B717s were added, for atotal
of
14
new
lease
financed aircraft.
In
addition. during the first quarter
of
2001.
we
lease financed three B717 aircraft which had been delivered
in
the fourth quarter
of
2000 with interim financing from the manufacturer.