AirTran CEO: Delta getting unfair breaks

[Paul]

After watching Georgia lawmakers hand Delta Air Lines Inc. a $25 million jet fuel tax break on a silver platter last year, AirTran Airways is spoiling for a fight.

AirTran CEO Joe Leonard says he's tired of playing second fiddle to the bankrupt Atlanta airline, and he wants a fair shake from the state legislature.

Leonard said AirTran (NYSE: AAI), which has its hub in Atlanta but keeps its headquarters in Orlando, Fla., will never move here if this kind of treatment continues.

"We've considered it a number of times," Leonard said, "and every time we get close to thinking it's a good idea, something like this happens that says you're going to be a second-class citizen if you move your headquarters to Atlanta and you're always going to be second-rate to Delta. So why would we move our headquarters here?"

mlive.com

 

[flyhigh]

...well, when you're the largest employer in the city and the state and one of the primary reasons the city has propered as much as it has...you're going to catch a few breaks.

Let's be honest...Joe's AirTran is catching PLENTY of breaks from cities across the country to provide air service they could otherwise not justify (see Witchita for an example). When AirTran is larger than Delta and employs more Atlantans & Georgians than Delta, they'll get their share of breaks...

 

[WNrforlife]

...well, when you're the largest employer in the city and the state and one of the primary reasons the city has propered as much as it has...you're going to catch a few breaks.

Let's be honest...Joe's AirTran is catching PLENTY of breaks from cities across the country to provide air service they could otherwise not justify (see Witchita for an example). When AirTran is larger than Delta and employs more Atlantans & Georgians than Delta, they'll get their share of breaks...

Maybe Leonard pissed off the folks in ATL when he moved Valujet....er, um I mean AirTrain headquarters OUT OF ATLANTA. What an idiot.

 

[QA4Jet-A]

...well, when you're the largest employer in the city and the state and one of the primary reasons the city has propered as much as it has...you're going to catch a few breaks.

Let's be honest...Joe's AirTran is catching PLENTY of breaks from cities across the country to provide air service they could otherwise not justify (see Witchita for an example). When AirTran is larger than Delta and employs more Atlantans & Georgians than Delta, they'll get their share of breaks...

flyhigh.. I will not argue the point of Delta's size nor what I am sure they have done for the good of the City and State. Looking forward, someone over there needs to agree on something or Delta employees will be the largest collector of unemployment checks. Size alone should have no bearing on a Tax break. FL is the second largest carrier in ATL and should get a break as well in relation to fuel used IMHO. Imagine Bill Gates getting a Tax break b/c he's the richest? Whats good for the goose should be good enough for the gander. As far as your example "Wichita", Delta went crying to the FAA that it was unfair. Is it FL's fault if Cities or States want a LCC in their airports? Most cities do not subsidize FL as you think. One last question. How long did it take for Delta to blow that $25 mil? B)

Maybe Leonard pissed off the folks in ATL when he moved Valujet....er, um I mean AirTrain headquarters OUT OF ATLANTA. What an idiot.

Maybe Leonard "Ticked" no one off in Atlanta. In case you didn't know, when the two airlines merged, the AirTran certificate was in Orlando, not Atlanta. Also, Leonard wasn't even with the airline until 1999. The VJ certificate was surrendered. As far as your last line.... It takes one to know one...

 

[flyhigh]

QA,

How long it took Delta to blow through the money has no bearing on the issue. It's relief for a company that has a real need for it and has contributed significantly to the state in the past.

As for the fact that DL did complain to the FAA, absolutely, however it continues to be an issue in the industry. Cities like Atlanta want employees to make Delta wages (tax revenue) and provide fares at AirTran levels...the Bloomington/Witchita's of the world want Network carrier service (AA/UA/DL) at AirTran fares and subsidize to get it. The negative it that quite frankly, it supports growth plan when they might not otherwise have anywhere to put that plane. If they can't afford to operate a market, maybe it doesn't need service. I have no problem with cities that help with initial marketing costs, etc. because I've found, in my experience that a more level playing field exists in those cases. However, continued subsidization can't be acceptable in this environment...

 

[QA4Jet-A]

QA,

How long it took Delta to blow through the money has no bearing on the issue. It's relief for a company that has a real need for it and has contributed significantly to the state in the past.

As for the fact that DL did complain to the FAA, absolutely, however it continues to be an issue in the industry. Cities like Atlanta want employees to make Delta wages (tax revenue) and provide fares at AirTran levels...the Bloomington/Witchita's of the world want Network carrier service (AA/UA/DL) at AirTran fares and subsidize to get it. The negative it that quite frankly, it supports growth plan when they might not otherwise have anywhere to put that plane. If they can't afford to operate a market, maybe it doesn't need service. I have no problem with cities that help with initial marketing costs, etc. because I've found, in my experience that a more level playing field exists in those cases. However, continued subsidization can't be acceptable in this environment...

I will agree that the Tax break is a small relief for DL.
Not much, but in DL's situation, anything would be of help. I also do not discount DL's significant contributions to the State of GA. Your next comment is of interest to me...Cities like Atlanta want employees to make Delta wages (tax revenue) and provide fares at AirTran levels...Of course the State wants that.... Revenue!!!! but the City also recognizes not everyone can afford DL's airfares.... hence the existence of a LCC. If this is the case, then why can't DL provide fares at an FL rate without losing $$$? Simple, the Business Model is hurting and needs repair as you and I both know. May I be a tad blunt here without ticking anyone off? DL's managerial tier is way over-layered and is not profitable in its present state. I know they are working on it and I wish them well. I have friends on that side of the fence and wish NO ONE in this industry to lose their careers. Getting back to the issue.... the Kansas Senate has just past some legal jargon to continue subsidizing FL. I think they have also made it open to other Air carriers as well. the Bloomington/Witchita's of the world want Network carrier service (AA/UA/DL) at AirTran fares and subsidize to get it. I'm sure they would like the big name but they realize the (AA/UA/DL) combo isn't going to give them what the people want. I'd bet you a Beer... FL pulls out and the citizens are "taking it in the shorts" again. You will never agree those markets need a LCC and I can accept your thoughts and disagree as well. However, continued subsidization can't be acceptable in this environment...I'd say they are highly acceptable for the people who are flying and the State that supports it... FL was smart and worked a deal when DL didn't.