Airtran — Merger or Acquisition (September 2010)
21 slides from Airtran's merger presentation, Sep 27, 2010
Slide 1: Spreading Low Fares Farther
Filed by Southwest Airlines Co. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: AirTran Holdings, Inc. Commission File No.: 1-15991 On September 27, 2010, Southwest Airlines Co. (“Southwest”) po
Slide 2: Important Information Regarding the Transaction
Important Information Communications Holdings, statement AirTran PROXY BECOME or www.airtran.com Southwest, the SEC on direct 2 www.lowfaresfarther.com by April proxy SEC proposed on contacting and April also 2, at STATEMENT/PROSPECTUS statement/prospectus on Inc. Disclosures Information indirect AV
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Important Cautionary This 1933, strategies timeline (i) integration expectations, actual inability expected transaction; capacity Southwest Reports forward-looking www.lowfaresfarther.com Southwest’s presentation and results on of decisions, synergies for Disclosures Section cautions plans; the Form
Slide 4: The Transaction Agreement
The Under Represents Each Number If Based forma Transaction Agreement * 4 Based www.lowfaresfarther.com average Agreement share Southwest on the on ofan agreement, closing of shares ais the value, exchange premium subject AirTran average common and/or price including to AirTran common ratio ofof exc
Slide 5: Estimated Timeline
Estimated Announcement Shareholder Legal Single Approximately Integration www.lowfaresfarther.com Close Operating Timeline Efforts Approval/Department 9(September months Certificate 5 27, 2010) of Justice Approval
Slide 6: Why AirTran? Strategic Opportunity
Why Right Strategic Significant Complementary Other Opportunity Access Adds Ability Both Young, 6 www.lowfaresfarther.com AirTran? companies 37 opportunity key to all-Boeing potential synergies near-international spread business network to serve network rank have Low new which fleet from markets exp
Slide 7: Why Now? We Are Strong
Whyare We Strong Outstanding Excellent Leading Accelerates Combined More www.lowfaresfarther.com Now? profits routes Customers aircraft balance Culture Healthy. brand and network strategy Customer safe and sheet Weoperations Customer provides are to and Service boost Prepared. liquidity 7 improved p
Slide 8: Financial Impact: Attractive Return
Financial Attractive Positive Exceeds Expected Estimated Acquisition 8 www.lowfaresfarther.com financial our to Impact and net and be pretax annual efficient accretive integration impact investment synergies use to to Southwest of costs Southwest our return ofof at capital $300 least target proto $4
Slide 9: Significant Synergies
Significant At Incremental Hundreds Stimulates Streamlines Advertising Corporate Facilities Technology Total www.lowfaresfarther.com least cost $400 of savings overhead new Synergies certain and revenue new million Customers distribution itineraries expected corporate from of net9new by to annual to
Slide 10: What Does This Mean?
What A 10Great www.lowfaresfarther.com Does Deal This Mean?
Slide 11: The Company Transition
The Company Southwest All-Boeing Companies Ultimately, Corporate Intend www.lowfaresfarther.com to maintain Headquarters Airlines transition fleet will continue will significant Brand be to consistent transitioned will toand 11operate remain presence nameCustomer independently remain in to Dallas So
Slide 12: Young All-Boeing Fleet
Young Fleet Boeing Active Average (As 12 www.lowfaresfarther.com ofCombined September June Boeing Fleet 737-300 737-500 737-700 717-200 Age30, 547 10.9 Fleet 2010) 173 25 349 — 138 27, years — 86— 52 685 2010) 25 86 173 401 6.5 years SOUTHWEST 10.2 yearsAirTran
Slide 13: Strengthened Network: Overlap Markets
Strengthened Overlap Seattle Manchester Portland Spokane Flint Philadelphia (Dulles) Burbank Orange Greenville-Spartanburg(3) Amarillo Jacksonville Houston San Orlando Austin Sarasota Harlingen/South aKey Southwest MEXICO (1) Greenville-Spartanburg, www.lowfaresfarther.com Atlanta Aruba Knoxville Mi
Slide 14: Top 10 Cities by Daily Departures
Top (Number Rank 1 2 3 4 5 6 7 8 9 10 14Las Chicago Phoenix Baltimore/Washington Denver Houston Dallas Los Oakland San www.lowfaresfarther.com 10Vegas Angeles Diego Cities (Love of 144 178 (Midway) 109 (Hobby) daily 224 Boston 95 115 Orlando Ft. Field) Atlanta Chicago departures Lauderdale Indianapo
Slide 15: Seat Distribution by Region
Seat 23.3% Combined SOUTHWEST AirTran West East Southwest International Southeast Midwest Northwest www.lowfaresfarther.com Distribution 13.2% 14.8% 39.0% 33.4% 3.7%15.6% 18.0% 11.9% 17.9% 49.9% 3.5% 3.0% 0.5% 17.2% 3.4% 15.0% International Midwest and Puerto by Region 15.2% Rico and 15 Puerto 1.4%
Slide 16: Impact to Stakeholders
Impact 16 Stakeholders www.lowfaresfarther.com to
Slide 17: Expanded Low-Fare Service Benefits Customers
Expanded Customers Creates Generates Consumer Southwest * www.lowfaresfarther.com According hundreds hundreds low-fare Savings Airlines to anof independent from more service of additional millions the expansive 17 tonew many low-fare study inlow-fare annual low-fare more by itineraries Campbell-Hill
Slide 18: Combining Communities
Combining Communities Based and Four This 18 www.lowfaresfarther.com near-international brings new on current airports the together two operations, planned brands two destinations strong for will the 2011 create Employee-centric combined a larger, organization more Cultures, competitive would bothha
Slide 19: Strengthened Employee Opportunities
Strengthened Employees Creates Similar www.lowfaresfarther.com emphasis more network jobson andCustomer provides career 19 opportunities Service more growth Employee-centric foropportunities our combined Culture Employee group
Slide 20: Southwest and AirTran at a Glance
At A Twelve Total Operating ASMs RPMs FTE Cash Capital Active (1) information www.southwest.com, (2) 20 www.lowfaresfarther.com Adjusted This Employees Glance and Flow Operating 75.2 96.4 Fleet Spending Months financial Short-term Income From billion prepared (as for Ended Revenues of $90 34,636 Ope
Slide 21: www.lowfaresfarther.com
www.lowfaresfarther.com 21
Airtran Holdings — Merger or Acquisition (September 2010) on 6ix