Air Tran Stock Up as Southwest Airlines’ Purchase of AirTran Closes

Today Southwest Airlines expects to complete its purchase of AirTran thus combining to become the largest low-cost air carrier in the United States. Just prior to the closure, Air Tran stock reached a 52 week high at the end of last week at $7.56 per share.

Last week the Justice Department approved the merger, indicating that they feel certain that the move will not have a negative impact on the traveling public. In fact experts feel that the combination of the two low-cost air lines will likely have a positive impact on the price of air travel for the public.

In the past, when Southwest Airlines has opened service into a new city, it has typically forced other carriers in that market to adjust prices lower resulting in lower fares and more options for air travelers.

The acquisition of AirTran will allow Southwest to expand to over a hundred new cities and potential for international markets. The DOJ believes that the arrival of the expanded Southwest Airlines into the new cities will increase competition with other airlines and be beneficial for consumers.