Airfares may drop just in time for Spring Break.

In June, AirTran, a low-fare airline, requested a formal proposal from East Tennesseans for Airfare Competition. This outline brings ETAC one step closer to its spring 2004 deadline.

“We are certainly excited and optimistic about the request for this proposal, and the accelerated discussions with AirTran that it will likely bring about,” said Danni Varlan, ETAC coordinator. “However, this is only the proposal stage – it’s not a done deal. We hope to have AirTran in Knoxville by spring.”

The proposal came about through many meetings and a lot of research.

“We’ve been talking to AirTran since October of last year,” Varlan said. “We met two times in Orlando, and we did some research. In our research, we found that many people drive to Nashville for cheaper rates.”

AirTran left Knoxville in 2000 after losing money. In order to lure them back, the ETAC has proposed a three-fold plan, including a travel bank and advertising and marketing incentives.

With the community’s help, a travel bank of $4 million will be created for one year to be paid to the carrier.

“A travel bank is not only guaranteed revenue for the airline, but also guarantees that there will be passengers on their flights,” said Darrell Akins, ETAC chairman. “This approach gives the airline a chance to earn repeat business based on performance, a concept that provides a win-win situation for all involved.”

Both marketing and advertising incentives are included in the package of benefits. The media will offer extensive marketing for the airlines. The regional media outlets will also provide advertising offers to airlines who want to enter the Knoxville market.

If AirTran comes to Knoxville, a trip to Atlanta might be as low as $59.

“Ticket prices will be reduced by 30 to 70 percent,” Varlan said. “When AirTran was here before, Knoxvillians saved $60 million a year. Through our research, we’ve learned that people would save $120 million a year if AirTran comes back. This means cheap Spring Break tickets. It will also bring the leisure market here as well.”

By bringing in AirTran, the ETAC hopes other airlines will offer competitive prices.

“We have asked the major airlines currently at McGhee Tyson to lower their airfares to a level that is competitive to surrounding markets,” Varlan said. “We want to provide equal opportunity to any carrier willing to introduce low fare pricing and maintain it.”

In order to provide the equal opportunity, the ETAC took their proposal to McGhee Tyson’s existing airlines.

“We’ve offered it to all the existing airlines,” Varlan said. “They have all declined.”

The ETAC, a non-profit organization, was created solely to bring lower airfares to Knoxville. For more information, visit http://www.etac.org.