(AP) -- Southwest Airlines says it will buy AirTran for about $1.4 billion. The move would put Southwest in head-to-head competition with Delta Air Lines in Delta's home base of Atlanta. Funded mostly with debt, the buyout will also give Southwest a bigger presence in cities like Boston and New York, where it has been expanding.
Southwest, based in Dallas, carries more passengers than any other airline in the U.S. Besides its base in Atlanta, AirTran has hubs in Milwaukee and Orlando.
The announcement continues the airline industry's move to consolidate. Continental Airlines and United Airlines parent UAL Corp. will formally combine at the end of this week and become the world's largest, toppling Delta. Delta claimed that spot when it acquired Northwest Airlines two years ago.
*NBC25's Dan Armstrong is at Bishop International Airport. Monday, on NBC25 News at 6:00 pm, he will have a full report on how this will impact Mid-Michigan flights.
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