Gambling that it can make money where US Airways failed, AirTran Airways launched new service to Baltimore-Washington International Airport yesterday, putting it in a league with a small number of low-fare carriers that continue to expand in the face of an economic downturn.
"There is a certain degree of risk, but in a place like BWI, I think the economy is still pretty strong," said Kevin P. Healy, AirTran's vice president for planning. "It's a very large market."
The airline began with three daily nonstop flights each from BWI to Atlanta and Boston. But plans are already in place to serve several Florida cities, including Orlando, the airline's home base, Miami, Fort Lauderdale and Fort Myers, bringing the total number of daily flights to 14 or 15 by March, Healy said.
AirTran and BWI officials are optimistic that the airline will be able to fill a large gap left after US Airways' MetroJet service ceased Dec. 2.
US Airways - the second-busiest airline at BWI after Southwest Airlines - eliminated its Baltimore-based MetroJet fleet as part of a series of cost-cutting moves precipitated by the Sept. 11 terrorist attacks in New York and Washington.
MetroJet accounted for more than half of US Airways' mainline jet flights at BWI.
With a pledge of marketing assistance from the Maryland Aviation Administration, AirTran, formerly ValuJet, stepped up its plans to enter the Baltimore market after learning of MetroJet's demise.
Healy said the airline is already considering adding flights, and could eventually grow to match MetroJet's size and frequency of flights.
"I don't see that as being inconceivable," he said. "Though the markets we'll fly to may be somewhat different than the ones they did."
Analysts said AirTran has a low cost structure and is better poised than US Airways to take on Southwest in Baltimore and Washington.
"AirTran is basically going to be another US Airways [at BWI], only they're going to make money," said Ray Neidl, an analyst with ABN Amro Inc.
AirTran President Robert L. Fornaro is a former US Airways executive. And Healy, the vice president for planning, worked for US Airways before joining AirTran.
AirTran is among the few airlines to gain market share after the Sept. 11 terrorist attacks. As major carriers are cutting flights, smaller, low-fare airlines such as AirTran, JetBlue and Frontier are restoring canceled flights and adding new routes.
AirTran reported that its November traffic was down just 4.8 percent, while major airlines are still seeing double-digit declines. The airline has about $100 million in cash and continues to expand its fleet with the addition of one new Boeing 717 per month.
"In the early part of an economic downturn, we tend to get increased demand in some ways because people are looking for [low fares]," Healy said.
