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“That’s one of the ways we keep our costs down. Once
you start going international, you’ve added a fair amount
of complexity. You’ve got language issues, currency issues,
issues of clearing customs. So we are being cautious in
regard to expanding into the international arena.”
Speculating on the future of the airline industry overall,
the AirTran CEO sees some of the legacy carriers
merging, but not this year. “You’ve got United out there
constantly talking about the need for consolidation,” he
said. “They are the biggest carrier, so if they think it’s a
good idea, whether it is or not, it’s likely to occur.”
He also noted that “the legacy carriers, at least for the
time being, seem to be interested in making money, and
they aren’t doing the silly things they used to do to show
people how tough they are – these little battles that
would come up because one carrier entered somebody’s
market and they would flood the other carrier’s system
with capacity.” Leonard added, “With Boeing and Airbus
sold out, it’s preventing the airlines from adding too
much capacity too soon,” something they often did in
the past when the “first sign of prosperity set in.”
Despite all the perils that exist, Leonard still sees the
airline industry as an “incredibly exciting business. Just
when you think you have it figured out, something new
happens.” Almost like a game of chess, but with a lot
more at stake.
Innovative Advertising
AirTran’s “Go, There’s Nothing Stopping You” has become one of advertising’s most familiar tag lines. It challenges fliers to take charge of their travel plans, whether they are hopping a plane to solve a client problem or for a spur of the moment getaway. It has used as spokespersons notables such as NFL quarterback Peyton Manning, Atlanta Falcon running back Warrick Dunn, and race car driver Danica Patrick. AirTran has also used the image of Elton John to promote the availability of XM Satellite Radio service on all flights.
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