AirTran's Learning From History

Pay is a secondary issue for pilots, who are seeking only cost-of-living increases and are focused on other matters that include seniority protection in the event of a merger and a reduction in the percentage of their insurance costs they are required to pay.

In addition, Gaudet says, more efficient scheduling would improve pilots' work lives and reduce costs. "AirTran keeps the overhead down and is very thin in systems technology," he says. "We think an investment in technology would optimize schedules and pay for itself."

Despite the conflicts, pilot leaders profess their admiration for Leonard, who they say has enabled the airline to prosper since joining as chairman in 1999. "We might pick on Joe a little bit, but the bottom line is he saved this company from certain disaster," Philpot says. "When he arrived, we were cash poor and close to bankruptcy."