AirTran Holdings, Inc.
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AirTran Holdings, Inc. Financial Snapshot
Operating Performance
Fast Facts
9955 AirTran Boulevard, Orlando, The company reported revenue of US$2,619.17
Headquarters Address
32827,United States of America million during the fiscal year 2010 (2010). The
company's revenue grew at a CAGR of 8.47% during
Telephone + 1 407 3185600
2006–2010, with an annual growth of 11.86% over
2009. In 2010, the company recorded an operating
Fax + 1 407 2515727 margin of 4.89%, as against 7.74% in 2009.
Website www.airtran.com
Revenue and Margins
Ticker Symbol, Stock Exchange AAI, New York Stock Exchange
Number of Employees 7,717
Fiscal Year End December
Revenue (in US$ million) 2,619.17
SWOT Analysis
Strengths Weaknesses Return on Equity
Low Cost Structure Declining Operating Margin The company recorded a return on equity (ROE) of
7.15% for 2010, as compared to its peers, Delta Air
Domestic Operation- ‘all eggs in one Lines, Inc. (Ticker: DAL), Southwest Airlines Co.
Strong Atlanta Hub and Route Network (Ticker: LUV) and JetBlue Airways Corporation
basket’
(Ticker: JBLU), which recorded ROEs of 66.11%,
Strong Growth in Revenues Limited Liquidity Position 7.36% and 5.86% respectively. The company
reported an operating margin of 4.89% in 2010.
Low Return on Equity
Return on Equity
Opportunities Threats
Brand Image Anti-takeover Provisions
Flexibility in Operations Excessive Competition
Value-added Services Operational Cost
Liquidity Position
The company reported a current ratio of 1.10 in 2010,
as compared to its peers, Delta Air Lines, Inc.,
Southwest Airlines Co. and JetBlue Airways
Corporation, which recorded current ratios of 0.64,
1.29 and 1.25 respectively. As of December 2010, the
company recorded cash and short-term investments
of worth US$453.96 million, against US$69.48 million
current debt. The company reported a debt to equity
ratio of 1.85 in 2010 as compared to its peers, Delta
Air Lines, Inc., Southwest Airlines Co. and JetBlue
Airways Corporation, which recorded debt to equity
ratios of 17.00, 0.54 and 1.83 respectively.
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AirTran Holdings, Inc. - SWOT Profile Page 1
AirTran Holdings, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.3 Competitive Benchmarking ..................................................................................................................................14
2.3.1 Market Capitalization .......................................................................................................................................14
2.3.2 Efficiency ..........................................................................................................................................................15
2.3.3 Capital Expenditure ..........................................................................................................................................16
2.3.4 Turnover – Inventory and Asset .......................................................................................................................17
2.3.5 Liquidity ............................................................................................................................................................18
3 Recent Developments ........................................................................................................................... 19
4 SWOT Analysis ...................................................................................................................................... 21
4.1 SWOT Analysis - Overview ..................................................................................................................................21
4.2 Strengths ..............................................................................................................................................................21
4.3 Weaknesses .........................................................................................................................................................21
4.4 Opportunities ........................................................................................................................................................22
4.5 Threats .................................................................................................................................................................22
5 Company Statement .............................................................................................................................. 24
6 History .................................................................................................................................................... 25
7 Key Employees ...................................................................................................................................... 26
8 Key Employee Biographies................................................................................................................... 28
9 Locations and Subsidiaries .................................................................................................................. 29
9.1 Head Office ..........................................................................................................................................................29
9.2 Other Locations and Subsidiaries ........................................................................................................................29
10 Appendix ................................................................................................................................................ 30
10.1 Methodology .........................................................................................................................................................30
10.2 Ratio Definitions ...................................................................................................................................................30
10.3 Disclaimer.............................................................................................................................................................34
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AirTran Holdings, Inc. - SWOT Profile