DALLAS -- Southwest Airlines Co. completed its planned acquisition of AirTran Holdings Inc. Monday, extending the low-fare carrier's reach into Atlanta, Washington and markets outside the US.
Bob Jordan, Southwest's executive vice president of strategy and planning, will serve as president of AirTran during the integration. Bob Fornaro, who has served as AirTran's chairman, president, and CEO, will consult on the integration of the two airlines.
Southwest said that AirTran will continue to operate under its current brand with its same policies, procedures, and product features for the time being. The company expects to begin converting AirTran aircraft to the Southwest brand in 2012. In the meantime, AirTran customers will continue booking flights and checking in to that airline as they have in the past.
Frequent flier loyalty programs will also remain separate for the time being. Southwest's headquarters will remain in Dallas.
Southwest said the transaction values AirTran common stock at roughly $7.57 per share, given recent closing prices, bringing the total value to $1 billion.