I have been involved in the airline and aviation business for more than 30 years, and I am a true believer in deregulation and the marketplace. Unfortunately, we do not have the open markets and level playing field envisioned by the authors of deregulation. I have never seen a time at which the near and long term interests of the consumer is more threatened than today. We see forming now a Perfect Storm of corporate actions and government in actions that could leave business and leisure air travelers adrift in a sea of anti-competitive practices for years to come. Let me get straight to the point.
Consumers get lower fares and better service in markets where there is real competition.
That is the free enterprise system at work I have attached some charts to my statement that show the impact of AirTran on fares in various markets. When AirTran enters a market, average fares generally decline by as much as 50 percent, and passenger demand grows by 125 percent or more. In 1997, DOT granted AirTran exemption slots to fly from Atlanta to New York LaGuardia. We also have enjoyed major success in linking our network to small and medium-sized cities. For example, our entry into the Bloomington market cut prevailing fares by an average of 41 percent and stimulated a 930 percent increase in passenger demand.