Aviation: The Survivor Airline

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As the old carriers struggle, Leonard is moving on their airspace. AirTran, which flies to 51 cities, will add flights to Detroit, Northwest's most important hub, starting in November. AirTran announced that it would start service there on the day it became clear a strike was likely at Northwest.

Going forward, Leonard knows AirTran's fate will depend largely on whether the Federal Government gets out of the business of subsidizing failed airlines. "As a nation, we are subsidizing failure on a grand scale ... And it needs to end," says Leonard. "There should be firm limits to bankrupt carriers' being allowed an almost never ending process of not paying their bills." But even if the government steps back and Delta and Northwest become significantly weaker, at least one serious rival is already moving in to pick up some slack. New York--based JetBlue, just five years old and the most successful low-fare start-up in history, will begin in November flying the Embraer 190--smaller planes that will allow the company to connect cities mainly up and down the East Coast. AirTran execs aren't too worried. "When the dust settles, we'll all be stronger," says Fornaro. The airlines that are still flying, that is.