AirTran's shareholders approve acquisition by Southwest

AirTran Holdings Inc.'s shareholders approved the $1.4 billion cash-and-stock buyout offer from Southwest Airlines Co., moving the carriers closer to completing their tie-up.

About 78 percent of outstanding shares were voted, with almost 99 percent of those favoring the transaction, Orlando, Florida-based AirTran said today in a statement.

The combination will give Southwest flights into Atlanta, the world's busiest airport and the hometown hub of Delta Air Lines Inc., for the first time. AirTran agreed to be bought by Southwest in September.

Southwest also will gain control of the smaller carrier's fleet of 138 Boeing Co. jets. Southwest, which flies only Boeing 737s, will take on a second aircraft type with AirTran's smaller Boeing 717s.

Atlanta is AirTran's biggest hub, representing about half of its flights with 360 takeoffs and landings a day, followed by Orlando, Baltimore-Washington and Milwaukee.

Southwest, based in Dallas, is the fourth-largest U.S. carrier by passenger traffic and had $12.1 billion in sales last year. AirTran is 10th-biggest in the U.S. and had 2010 revenue of $2.62 billion.

The deal value is based on Southwest's closing price yesterday of $12.32 in New York Stock Exchange composite trading. That's little changed from its $12.28 close on Sept. 24, the last trading day before the acquisition was announced.