Low budget US air carrier Southwest Airlines will soon have a presence in Jamaica with its impending acquisition of Orlando-based AirTran Airways.
Southwest announced the 1-point-4 billion US dollar stock and cash acquisition on Tuesday.
In addition to its US routes, AirTran flies to Montego Bay and other countries in the region including Aruba; and the Bahamas.
The airlines expect the deal will save US$400 million annually by 2013 through their complementary network and common fleet.
One-time costs related to the acquisition and integration are expected to be in the region of 300 to 500 million US dollars.
Observers say because the two airlines only have 19 overlapping routes, the Department of Justice will likely approve the merger.
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