<PAGE>

                                                                   Exhibit 10.16

                             CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT ("Agreement") is made and entered into as of this 17th
day of November, 1997.

BY AND BETWEEN                     AIRTRAN HOLDINGS, INC.,
                                   a Nevada corporation, hereinafter
                                   referred to as the "Company"

AND                                Lewis H. Jordan,
                                   an individual, hereinafter referred
                                   to as "Jordan"

WITNESSETH:

1.   EMPLOYMENT. Company hereby retains and employs Jordan to serve in the
     ----------
     capacity of consultant to the Company. Jordan accepts such employment upon
     the terms and conditions herein set forth. For all purposes, Jordan shall
     be treated as an employee of the Company during the term of this Agreement.

2.   TERM. The term of this Agreement shall commence on November 17, 1997 and
     ----
     shall continue until December 31, 2004, unless terminated earlier in
     accordance herewith.

3.   DUTIES. During the term of this Agreement, Jordan shall perform upon
     ------
     request of the Company, such duties and functions as may be necessary or
     desirable to consult and otherwise participate in the defense of litigation
     involving the Company relating to events taking place prior to the date
     hereof. The parties agree that Jordan will only devote a limited portion of
     his time and attention to the performance of his duties for the Company and
     will likely h ave other commitments that may interfere with requested
     services hereunder. Jordan agrees to use his good faith efforts to be
     available for the purposes set forth herein when sufficient advance notice
     is provided by the Company.

4.   COMPENSATION. As compensation for his services hereunder, Jordan shall
     ------------
     receive an annual base salary of (i) $100,000 per annum for the years 1998
     through 2002, and (ii) $20,000 per annum for the years 2003 and 2004. Such
     salary shall be payable quarterly or at other intervals agreeable to Jordan
     and the Company. Such annual base salary shall be prorated for any partial
     period of employment. The Company shall deduct from each salary payment any
     and all sums required to be deducted by the Company for Social Security,
     federal and state withholding taxes, and any other federal or local tax or
     charge, whether now in effect or hereafter enacted or required, on such
     compensation.

5.   REIMBURSEMENT OF EXPENSES. The Company shall reimburse Jordan for his
     -------------------------
     reasonable and necessary out-of-pocket expenses incurred in connection with
     the performance of services hereunder.

                                       1
<PAGE>

6.   BENEFITS.
     --------

     (a)  Jordan and his wife and dependents shall have lifetime pass privileges
     on Company flights, consistent with the most favorable pass privileges
     available to any Company executives as in effect from time to time.

     (b)  Jordan and his wife shall have the right during their lifetimes to
     continuing coverage in the Company's health insurance plan in effect from
     time to time. So long as this Agreement remains in effect, such coverage
     shall be provided at the Company's expense. After the termination or
     expiration of this Agreement, such participation shall be at Jordan's cost,
     not to exceed the COBRA (or equivalent) premium that would be chargeable
     with respect to such coverage.

     (c)  Jordan shall not be entitled to any other benefits as an employee of
     the Company.

7.   NONDISCLOSURE. Jordan shall not, at any time during or after the
     -------------
     termination of his employment hereunder, except when acting on behalf of
     the Company, make use of or disclose to any person, corporation, or other
     entity, for any purpose whatsoever, any trade secret or other confidential
     information concerning the Company's business, finances or marketing
     information (collectively referred to as the "Proprietary Information").
     For the purposes of this Agreement, trade secrets and confidential
     information shall mean information disclosed to Jordan or known by him as a
     consequence of his employment by the Company, whether or not pursuant to
     this Agreement, and not generally known in the industry, concerning the
     business, finances, methods, operations and marketing of the Company;
     provided that trade secrets shall not include information publicly
     available or otherwise publicly disclosed except for public disclosures in
     violation of this Agreement. Jordan acknowledges that trade secrets and
     other items of confidential information, as they may exist from time to
     time, are valuable and unique assets of the Company, and that disclosure of
     any such information could cause substantial injury to the Company.

8.   TERMINATION. The Company may terminate Jordan's employment hereunder only
     -----------
     if Jordan has willfully and unreasonably neglected or refused to perform
     his duties or responsibilities reasonably requested hereunder and fails to
     cure such breach within ten (10) days after written notice thereof from the
     Company. Otherwise, this Agreement may not be terminated without Jordan's
     consent.

9.   REMEDIES. Jordan acknowledges that a breach by him of any of the covenants
     --------
     contained in Section 7 of this Agreement could cause irreparable harm and
     injury to the Company for which the Company may have no adequate remedy at
     law. Jordan therefore agrees that, upon the occurrence of any breach or
     threatened breach of such covenants, the Company may be entitled, in
     addition to any damages it may have suffered as a result of the breach, to
     an injunction against breach of any of said covenants.

10.  ASSIGNMENT. This Agreement shall be binding upon and shall inure to the
     ----------
     benefit of the successors and assigns of the Company. The services to be
     rendered by Jordan to the Company are individual and personal, and
     performance of such services may not be rendered to the Company on behalf
     of Jordan by any other person.

                                       2
<PAGE>

11.  MISCELLANEOUS.
     -------------

     (a)  Entire Agreement. This Agreement rescinds and supersedes any and all
          ----------------
          other agreements between the Company and Jordan with the exception of:
          (i) Jordan's options to purchase stock in the Company, as more
          specifically described in Exhibit "A" attached hereto, and (ii) that
          certain Indemnification Agreement between the Company and Jordan
          attached hereto as Exhibit "B." This Agreement contains the entire
          understanding between the parties relative to the employment of
          Jordan, there being no terms, conditions, warranties, or
          representations other than those contained herein, and no amendment
          hereto shall be valid unless made in writing and signed by both of the
          parties hereto.

     (b)  Governing Law. This Agreement shall be construed, in accordance with
          -------------
          the laws of the State of Nevada.

     (c)  Severability. In the event that any provision herein shall be legally
          ------------
          unenforceable, the remaining provisions nevertheless shall be carried
          into effect. Although the parties believe Jordan's covenants contained
          in Section 7 are fair and reasonable, if a court of competent
          jurisdiction determines that one or more of the covenants is excessive
          in duration or scope, the covenant shall be deemed modified and shall
          be enforceable to the extent determined reasonable by the court.

     (d)  Notices. All notices required or permitted to be given hereunder shall
          -------
          be deemed given if in writing and delivered personally or sent by
          telex, telegram, telecopy, or forwarded by prepaid registered or
          certified mail (return receipt requested) to the party or parties at
          the following addresses (or at such other addresses as shall be
          specified by like notices), and any notice however given, shall be
          effective when received:

                         To Jordan:     Lewis H. Jordan
                                        610 Wingspread
                                        Peachtree City, Georgia 30269
                                        Fax: (770) 486-1617

                         To the Company:
                                        AirTran Holdings, Inc.
                                        1800 Phoenix Blvd., Suite 126
                                        Atlanta, GA 30349
                                        Attn: President
                                        Fax: (770) 907-2586

     (e)  Waiver. The waiver by any party of a breach of any provision of this
          ------
          Agreement by the other shall not operate or be construed as a waiver
          of any subsequent breach of the same provision or any other provision
          of this Agreement.

                                       3
<PAGE>

     (f)  Counterparts. This Agreement may be executed in one or more
          ------------
          counterparts, each of which shall be deemed an original, but all of
          which together shall constitute one and the same instrument.

     (g)  Headings. The subject headings to the sections in this Agreement are
          --------
          included for purposes of convenience only and shall not affect the
          construction or interpretation of any of its provisions.

     (h)  Construction. Each party has had the opportunity to set forth in this
          ------------
          Agreement all matters related to the subject hereof. Jordan and the
          Company acknowledge the binding legal effect of this Agreement, that
          this Agreement has been negotiated by the parties hereto and that each
          party has, to the extent desired, sought legal counsel related to the
          terms, conditions and effect of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first hereinabove written.


                                   /s/ Lewis H. Jordan
                                   ---------------------------
                                   Lewis H. Jordan


                                   AIRTRAN HOLDINGS, INC.



                                   By: /s/ D. Joseph Corr
                                       -----------------------

                                   Title:
                                         ---------------------

                                       4
<PAGE>

                                  EXHIBIT "A"

                           Outstanding Stock Options

<TABLE>
<CAPTION>
------------------------------------------------------------------------------
     DATE OF             NUMBER OF           EXERCISE       EXPIRATION
      GRANT               SHARES               PRICE             DATE
------------------------------------------------------------------------------
<S>                      <C>                 <C>            <C>
June 17, 1993            2,400,000           $.166675       June 17, 2003
June 28, 1994              200,000           $  3.125       June 28, 2004
January 26, 1995           150,000           $   3.75       January 26, 2005
January 26, 1995            40,000           $  5.125       January 26, 2005
January 30, 1996           250,000           $ 18.375       January 30, 2006
</TABLE>

                                       5