Airtran 2007 Annual Report Download - page 26

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Risks Factors relating to us and potential acquisitions.
We have sought to acquire other carriers, as well as gates and other assets from other carriers. In the event we complete one or more
acquisitions we may be subject to a variety of risks. We intend, to the extent possible, to integrate the operations of acquired assets and
entities with those of AirTran Airways. Depending on the nature of the acquired entity or operations, integration of acquired
operations into our present operations may present substantial difficulties. Even where material difficulties are not anticipated, there
can be no assurance that we will not encounter such difficulties in integrating acquired operations with our operations, which may
result in a delay or the failure to achieve anticipated synergies, increased costs and failures to achieve increases in earnings or cost
savings. The difficulties of combining the operations of acquired companies may include, among other things:
• possible inconsistencies in standards, controls, procedures and policies, business cultures and compensation structures
between us and an acquired entity;
• the consolidation of sales and marketing operations;
• the retention of existing customers and attraction of new customers;
• the retention of key employees;
• employee strikes and other labor-related disruptions in connection with union representation;
• employee strikes and other labor-related disruptions in connection with seniority questions with respect to both union and
non-union employees;
• the consolidation of corporate and administrative infrastructures;
• the integration and management of the technologies and products of the acquired entity, including the consolidation and
integration of computer information systems;
• the identification and elimination of redundant and underperforming operations and assets;
• costs associated with the termination of assumed contractual obligations and the timing thereof;
• diversion of management’s attention from ongoing business concerns;
• the possibility of tax costs or inefficiencies associated with the integration of the operations;
• the possible need to modify internal controls over financial reporting in order to comply with the Foreign Corrupt
Practices Act, the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated there under; and
• loss of customer goodwill.
For these reasons, we may fail to successfully complete the integration of an acquired entity, or to realize the anticipated benefits of
the integration of an acquired entity. Actual cost savings and synergies which may be achieved from an acquired entity may be lower
than we expect and may take a longer time to achieve than we anticipate. Other acquisition related risks include risks associated with
higher costs or unexpected difficulties or problems with acquired assets or entities including different flight equipment, outdated or
incompatible technologies, labor difficulties, or an inability to realize anticipated synergies and efficiencies. Whether within
anticipated timeframes or at all, one or more of such acquisition-related risks, if realized, could have an adverse impact on our
business, financial condition, results of operations, or operations.