The Federal Aviation Administration (FAA) informed Southwest Airlines that it has accepted the carrier’s transition plan to combine the operations of Dallas-based Southwest Airlines and Orlando-based AirTran Airways, following the financial close of its transaction to acquire AirTran. On Sept. 27, 2010, Southwest announced an agreement to acquire all outstanding shares of common stock of AirTran Holdings, the parent company of AirTran Airways (AirTran), for a combination of cash and Southwest Airlines’ common stock. Closing is subject to the approval of AirTran shareholders, receipt of certain regulatory clearances, and fulfillment of customary closing conditions.
Southwest and AirTran currently have separate operating certificates. The transition plan accepted by the FAA outlines the methodology, processes, tools, and timing to be employed to maintain the safety of their day-to-day operations during the transition period and to ultimately achieve a Single Operating Certificate. The SOC is issued by the FAA once all of the steps outlined in the transition plan have been completed. The carriers’ processes, and procedures may not be fully integrated when the SOC is issued, however; they will operate under a single FAA certificate at that time.
