AIRTRAN INTRODUCES NEW SERVICES, BEGINS STRATEGY TO REDEFINE AFFORDABLE AIR TRAVEL

ATLANTA, Sept. 24, 1997 - ValuJet Airlines today changed its name to AirTran Airlines and along with its merger partner AirTran Airways introduced a new business strategy designed to appeal to a broader travel audience. The airline said that its objective is to make air travel more attractive to business travelers and even more convenient for leisure travelers.

AirTran Airlines President and Chief Executive Officer D. Joseph Corr unveiled the airline's new changes, introducing a new business class service, featuring two-by-two seating, displayed its new corporate livery, and announced a number of other product and service enhancements including pre-assigned seating and nationwide distribution of its seats through travel agents. Corr also outlined a code-sharing agreement with its merger partner, Orlando-based AirTran Airways.

"Over the past year we've renewed our focus on the basics of our business with safety, reliability and operational excellence as our goal," said Corr, who joined the carrier in November 1996. He previously served as president and chief executive officer of Continental Airlines and as president of Trans World Airlines. "AirTran's mission is to turn air travel customers can actually afford into air travel customers actually like. It's that simple. That's a significant change from our previous strategy, which was to offer the lowest-priced air transportation possible, without frills or enhancements," added Corr, who will be the chief executive of the merged airline and holding company.

"Joe is exceptionally well qualified to lead the new AirTran into the 21st century," said Rob Swenson, who will serve as the chairman of the merged holding company. "He shares our commitment and vision of providing the traveling public with safe, affordable and convenient service."

Business Class Seats
AirTran said the needs of business travelers have often been overlooked by affordable fare airlines. The result is that most business travelers don't fly affordable fare airlines and end up paying outrageously expensive fares. "Our goal is to offer business class seats that any business can afford," said Corr.

AirTran's new business class section will feature four rows of two-by-two seats with seven more inches of legroom and four more inches of seat width than typical coach seats. The business class seats will only be $25 more than AirTran's regular one-way coach fare on nonstop flights and $40 more on multi-stop flights. All of the carrier's aircraft will offer its new business coach section beginning on November 22, 1997.

Corr unveiled the new business class in today's ceremony. "The litmus test we gave our people was to design this product to let me site comfortably with an open attache case," Corr said. "If it works for me, it works for anybody - and it works for me."

Business class customers will be able to change their travel plans without penalty fees or receive full refunds if they can't make their flights. Additionally, travelers who purchase unrestricted coach fares may also pre-select their seats.

As with all AirTran reservations, business class travelers will not be required to make a round trip purchase or stay over a Saturday night to take advantage of AirTran's affordable fares.

Advance Seat Assignments
According to Corr, "Because business travelers often arrive at the airport much later than most leisure travelers they often find the only seats available are the middle ones - where there isn't room to open a briefcase."

To provide a more comfortable and convenient air travel experience, AirTran will initiate computerized seat assignments for all of its customers. Business class travelers as well as all full fare coach customers will be able to pre-select their seats when they reserve them, while leisure travelers will be able to select their seats when they check in at the airport.

"This way, business travelers have peace of mind knowing what seat they'll have even if they get the airport fifteen minutes before departure, and entire families and other leisure customers traveling in groups will be able to sit together," said Corr, who added the advance seat assignment process will also expedite the boarding process.

CRS Participation
Because many travelers prefer to use travel agents, AirTran Airlines will make all of its seats available for sale through computer reservation systems used by more than 35,000 travel agents nationwide, a departure from earlier practice that required customers and travel agents to call the airline by phone. Because of the success that AirTran Airways has already experienced using this distribution strategy, the combined carriers' will also utilize this wider distribution network. AirTran Airlines will also share a booking code -- "FL" - with AirTran Airways, that will be displayed on travel agents' computer systems SABRE, WORLDSPAN, Apollo, Amadeus and System One.

This new code-sharing agreement is a first step to completing the merger announced earlier this year. In addition, planning is underway to combine the flight schedules of the two airlines in January 1998. "AirTran's new route system, business class seating, participation in computer reservations systems, and advance seat assignment capabilities make it easier for travel agents to sell affordable air transportation to both business and leisure travelers," added Corr.

Corporate Livery
In today's ceremony, Corr unveiled AirTran's new corporate livery which features a large "a" on its aircraft tails, which Corr said stands for 'affordable.'

"AirTran is creating an innovative approach to affordable air travel that is unlike any other low-fare carrier. We are committed to keeping air travel affordable, safe and reliable," he added.

AirTran's Billion Dollar MD-95 Order
AirTran Airlines new livery will appear on all of its aircraft by the end of November 1997, as well as on the next generation of airplanes, the Boeing MD-95. The airline is the launch customer of the MD-95 and has a firm order for 50 - a $1 billion order on which progress payments are already being made, with an option to purchase an additional 50.

AirTran has been assured by senior management at Boeing that the manufacturer intends to deliver the MD-95s to AirTran on schedule. The MD-95 is currently in the advanced design and final assemble state, with delivery set to begin in June 1999.

AirTran's Commitment to Safety and Operational Excellence
"Some of the most important changes we've made in the last year aren't visible today," said Corr. "In our business, you have to be safe and reliable or you're not going to be in business very long. I'm also pleased to announce that we are also the only airline that has received FAA approval of a design for a smoke detection system for the DC-9 aircraft."

In remarks today, Corr also announced the acceleration of the installation of smoke detection systems on the AirTran's fleet and that the systems will be on every aircraft by the end of 1998. Federal requirements require airlines to have these systems installed by the year 2000. "This is further evidence of AirTran's commitment to the highest level of safety," added Corr.

Corr also noted that during his tenure at ValuJet, the airline's on-time performance (percentage of flights arriving within fifteen minutes of schedule) from October 1996 to May 1997 was 81.5 percent compared to an average of 75 percent reported by the ten major U.S. carriers who are required to submit flight delay data to the Department of Transportation. The airline's completion factor since October 1996 has averaged 99.2 percent, a number unmatched by any other airline.

The Merger
In July 1997, ValuJet, Inc., parent of ValuJet Airlines and AirWays Corporation, parent of AirTran Airways, announced that the two holding companies planned to merge by the end of November 1997. The new holding company, AirTran Holdings, Inc., will operate two wholly-owned subsidiaries, AirTran Airlines and AirTran Airways.

The combined carriers will initially serve 45 cities and operate a fleet of 42 aircraft, comprising of 31 DC-9 aircraft and 11 737's with 227 peak daily departures. The airline expects to increase its fleet size to more than 50 aircraft in 1998. AirTran will also continue to offer its FlightLink ground service between Atlanta's Hartsfield International Airport and Chattanooga, Tenn., as well as Macon and Dalton, Ga.

To make reservations call your travel agent or 1-800-AIRTRAN (1-800-247-8726). In the 404/770 area code call (770) 994-8258 or in the Orlando area call (407) 247-8726.