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Southwest Airlines bags rival AirTran

DALLAS - Leisure travelers turned Southwest Airlines Co. into a profit-making machine, but the acquisition of rival AirTran Airways shows how much Southwest is counting on business travelers to propel its growth in the future.

DALLAS - Leisure travelers turned Southwest Airlines Co. into a profit-making machine, but the acquisition of rival AirTran Airways shows how much Southwest is counting on business travelers to propel its growth in the future.

The $1.42 billion deal announced yesterday will let Southwest enter Atlanta and expand quickly in New York and Boston, all markets that are important to business travelers. Both airlines already have a presence in Philadelphia.

Airlines covet business travelers because they travel frequently and often pay more to purchase their seats at the last minute.

Southwest has long been considered a vacationer's airline. But it has lured corporate road warriors with offers like businessselect fares that cost more but promise priority boarding, extra frequent-flier credit and a free drink.

AirTran has carved out a profitable business in Atlanta, flying under the nose of Delta Air Lines Inc., the world's biggest airline, which is based there.

Southwest has stayed out of the fight, making Atlanta the biggest U.S. city that it doesn't serve. As a result, Southwest has lost potential customers.

"We're trying to get more customers in Chicago and more business customers in particular," Southwest CEO Gary Kelly said in an interview, "and if we don't serve their destination needs, we won't get them. Atlanta becomes a gaping hole in our route system."