AIRTRAN HOLDINGS INC
S-8, 1999-07-13
AIR TRANSPORTATION, SCHEDULED
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<PAGE>

     As filed with the Securities and Exchange Commission on July 13, 1999
                                                  Registration No. _____________
================================================================================

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM S-8
                            REGISTRATION STATEMENT
                                     Under
                          THE SECURITIES ACT OF 1933

                               -----------------

                            AIRTRAN HOLDINGS, INC.
            (Exact name of registrant as specified in its charter)

                               -----------------

           Nevada                                              58-2189551
(State or other Jurisdiction of                             (I.R.S. Employer
incorporation or organization)                             Identification No.)

                              9955 AirTran Blvd.
                            Orlando, Florida 32827

                         (Address, including zip code,
                 of registrant's principal executive offices)

                        AIRTRAN 1996 STOCK OPTION PLAN
                           (Full title of the plan)

                             Leslie C. Head, Esq.
                              9955 AirTran Blvd.
                            Orlando, Florida 32827
                                (407) 251-5600

           (Name, address, including zip code, and telephone number
                  including area code, of agent for service)

                               -----------------

                                  Copies to:
                           Robert B. Goldberg, Esq.
                Ellis, Funk, Goldberg, Labovitz & Dokson, P.C.
                                   Suite 400
                           3490 Piedmont Road, N.E.
                            Atlanta, Georgia 30305
                                (404) 233-2800


                        CALCULATION OF REGISTRATION FEE

<TABLE>
<CAPTION>
============================================================================================================================
                                                                           Proposed          Proposed
                                                           Amount          Maximum           Maximum         Amount of
Title of Securities                                        to be        Offering Price      Aggregate       Registration
to be Registered                                        Registered      Per Share (1)    Offering Price         Fee
- ----------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>              <C>                <C>
Common Stock, $.001 par value per share              5,000,000 shares       $5.83         $29,150,000         $8,103.70
============================================================================================================================
</TABLE>

(1) The price is estimated in accordance with Rule 457(h)(1) under the
    Securities Act of 1933, as amended, solely for the purpose of calculating
    the registration fee and is equal to the average of the high and low sales
    prices of the Common Stock as reported on the NASDAQ Stock Market on July 7,
    1999.
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                        <C>
Item 1:   Plan Information                                                 *
Item 2:   Registrant Information and Employee Plan Annual Information      *
Item 3:   Incorporation of Documents by Reference                          3
Item 4:   Description of Securities                                        3
Item 5:   Interests of Named Experts and Counsel                           3
Item 6:   Indemnification of Directors and Officers                        3
Item 7:   Exemption From Registration Claimed                              4
Item 8:   Exhibits                                                         4
Item 9:   Undertakings                                                     4
</TABLE>

* Separately given to participants.  Pursuant to the rules for filing a
  Registration Statement on Form S-8, such information is contained in a
  document which does not constitute a part of this Registration Statement but
  which shall, together with the documents incorporated by reference in this
  Registration Statement pursuant to Item 3 of Part II hereof, constitute a
  prospectus under Section 10(a) of the Securities Act of 1933.


                                    PART I

             INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS


Item 1:   Plan information

          Omitted.

Item 2:   Registrant Information and Employee Plan Annual Information

          Omitted.

                                      -2-
<PAGE>

                                    PART II

              INFORMATION REQUIRED IN THE REGISTRATION STATEMENT


Item 3.   Incorporation of Documents by Reference

     The following documents filed by AirTran Holdings, Inc. (the "Company")
with the Commission are incorporated herein by reference:

     (a)  The Company's Annual Report on Form 10-K for the year ended December
          31, 1998.

     (b)  The Company's Quarterly Report on Form 10-Q for the quarter ended
          March 31,1999.

     (c)  The description of the Company's Common Stock set forth in the
          Company's registration statement filed pursuant to Section 12 of the
          Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
          any amendment or report filed for the purpose of updating any such
          description.

     In addition to the foregoing, all documents subsequently filed by the
Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act,
prior to the filing of a post-effective amendment indicating that all of the
securities offered hereunder have been sold or which deregisters all securities
then remaining unsold, shall be deemed to be incorporated by reference in this
Registration Statement and to be part hereof from the date of filing of such
documents.  Any statement contained in a document incorporated by reference in
this Registration Statement shall be deemed to be modified or superseded for
purposes of this Registration Statement to the extent that a statement contained
herein or in any subsequently filed document that is also incorporated by
reference herein modifies or supersedes such statement.  Any statement so
modified or superseded shall not be deemed, except as so modified or superseded,
to constitute a part of this Registration Statement.

Item 4.   Description of Securities

          Not applicable.

Item 5.   Interests of Named Experts and Counsel

          The legality of the Common Stock offered hereby has been passed on for
the Company by Ellis, Funk, Goldberg, Labovitz & Dokson, P.C., Atlanta, Georgia.
Certain shareholders of Ellis, Funk, Goldberg, Labovitz & Dokson, P.C. own
19,513 shares of Common Stock of the Company.

Item 6.   Indemnification of Directors and Officers

     The Company's Articles of Incorporation provide that directors of the
Company will not be personally liable for monetary damages to the Company for
certain breaches of their fiduciary duty as directors to the fullest extent
allowable by Nevada law.  Under current Nevada law, directors would remain
liable for:  (i) acts or omissions which involve intentional misconduct, fraud
or a knowing violation of law, and (ii) approval of certain illegal dividends or
redemptions.  In appropriate circumstances, equitable remedies or nonmonetary
relief, such as an injunction, will remain available to a stockholder seeking
redress from any such violation.  In addition, the provision applies only to
claims against a director arising out of his role as a director and not in any
other capacity (such as an officer or employee of the Company).

                                      -3-
<PAGE>

     The Company also has the obligation, pursuant to the Company's By-laws, to
indemnify any director or officer of the Company for all expenses incurred by
them in connection with any legal action brought or threatened against such
person for or on account of any action or omission alleged to have been
committed while acting in the course and scope of the person's duties, if the
person acted in good faith and in a manner which the person reasonably believed
to be in or not opposed to the best interests of the Company, and with respect
to criminal actions, had no reasonable cause to believe the person's conduct was
unlawful, provided that such indemnification is made pursuant to then existing
provisions of Nevada Revised Statutes at the time of any such indemnification.

Item 7.   Exemption from Registration Claimed

          Not Applicable.

Item 8.   Exhibits

     4.1   --   AirTran 1996 Stock Option Plan. Incorporated by reference to the
                Registrant's Annual Report on Form 10-K for the year ended
                December 31, 1996, Commission File No. 0-26914, filed with the
                Commission on March 31, 1997.

     4.2   --   Form of Stock Option Agreement under Stock Option Plan.

     5     --   Opinion of Ellis, Funk, Goldberg, Labovitz & Dokson, P.C.

     23.1  --   Consent of Ernst & Young LLP.

     23.2  --   Consent of Ellis, Funk, Goldberg, Labovitz & Dokson, P.C.
                (included in Exhibit 5).

Item 9.   Undertakings

     (a)  The undersigned Registrant hereby undertakes:

          (1)  To file, during any period in which offers or sales are being
made, a post-effective amendment to this Registration Statement:

               (i)   To include any prospectus required by section 10(a)(3) of
                     the Securities Act of 1933;

               (ii)  To reflect in the prospectus any facts or events arising
                     after the effective date of the Registration Statement (or
                     the most recent post-effective amendment thereof) which,
                     individually or in the aggregate, represent a fundamental
                     change in the information set forth in the Registration
                     Statement; and

               (iii) To include any material information with respect to the
                     plan of distribution not previously disclosed in the
                     Registration Statement or any material change to such
                     information in the Registration Statement;

provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed by the Registrant

                                      -4-
<PAGE>

pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the Registration Statement.

          (2)  That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new Registration Statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.

          (3)  To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.

     (b)  The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
Registration Statement shall be deemed to be a new Registration Statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.

     (c)  Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable.  In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.

                                      -5-
<PAGE>

                                  SIGNATURES

     Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Orlando, State of Florida on the 9/th/ day of July,
1999.

                              AIRTRAN HOLDINGS, INC.


                              By: /s/ Joseph B. Leonard
                                  ---------------------------------------------
                                  Joseph B. Leonard, Chairman of the Board and
                                  President (Chief Executive Officer)

     KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints Robert L. Fornaro and Joseph B. Leonard and
either of them (with full power in each to act alone), his true and lawful
attorneys-in-fact, with full power of substitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this Registration Statement, and to
file the same, with all exhibits thereto, and other documents in connection
therewith including, without limitation, any registration statement for the same
offering that is to be effective upon filing pursuant to Rule 462(b) under the
Securities Act of 1933, as amended, with the Securities and Exchange Commission,
hereby ratifying and confirming all that said attorneys-in-fact, or their
substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

     Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated below.


/s/ Joseph B. Leonard           Chairman of the Board,            July 9, 1999
- ---------------------------     President (Chief Executive
    Joseph B. Leonard           Officer) and Director

/s/ Robert L. Fornaro           Chief Financial Officer           July 9, 1999
- ---------------------------
    Robert L. Fornaro

/s/ David W. Lancelot           Vice President,                   July 9, 1999
- ---------------------------     Controller (principal
    David W. Lancelot           accounting officer)

/s/ Don L. Chapman              Director                          July 9, 1999
- ---------------------------
    Don L. Chapman

/s/ John K. Ellingboe           Director                          July 9, 1999
- ---------------------------
    John K. Ellingboe

/s/ Lewis H. Jordan             Director                          July 9, 1999
- ---------------------------
    Lewis H. Jordan

/s/ Robert L. Priddy            Director                          July 9, 1999
- ---------------------------
    Robert L. Priddy

                                Director                          July 9, 1999
- ---------------------------
    Robert D. Swenson

                                      -6-

<PAGE>

                                                                     EXHIBIT 4.2
                                                                     -----------
                            AIRTRAN HOLDINGS, INC.
                                    FORM OF
                            STOCK OPTION AGREEMENT
                            ----------------------


     THIS STOCK OPTION AGREEMENT (the "Agreement") is made and entered into as
of ____________________, between AIRTRAN HOLDINGS, INC., a Nevada corporation
(the "Company") and _____________________ (the "Optionee").

     THE PARTIES AGREE AS FOLLOWS:

   1. Stock Option Plan.  The exercise of the Options granted under this
      -----------------
Agreement shall be subject to the terms, conditions and restrictions of AirTran
1996 Stock Option Plan (the "Plan").  A copy of the Plan is available to
Optionee upon request and is incorporated in this Agreement by this reference.
Terms used in this Agreement that are defined in the Plan shall have the same
meaning as in the Plan, unless the text of this Agreement clearly indicates
otherwise.

   2. Grant of Option.
      ---------------

      A. The Company hereby grants to Optionee pursuant to the Plan an option
(the "Option") to purchase all or any part of _____________________ shares (the
"Option Shares") of the Company's $.001 par value common stock (the "Common
Stock") on the terms and conditions set forth herein and in the Plan.

      B. Options granted under this Agreement shall constitute incentive  stock
options within the meaning of Code Section 422 to the extent permitted by the
Plan and the Code and options in excess of the amount allowable as incentive
stock options shall be nonqualified stock options.

   3. Exercise Price.  The exercise price (the "Exercise Price") for each share
      --------------
of Common Stock covered by this Option shall be $__________ per share.

   4. Adjustment of Options.  The Committee shall adjust the number of Option
      ---------------------
Shares and the Exercise Price thereof in certain circumstances in accordance
with the provisions of Item 11 of the Plan.

   5. Exercise of Options.
      -------------------

      A. Exercise of Option.  Subject to the other terms of this Agreement,
         ------------------
Optionee's right to exercise the Option granted hereunder shall be subject to
the following Vesting Schedule wherein Optionee shall be entitled to exercise
his right to purchase the Option Shares at any point in time during this
Agreement only to the extent indicated below:
<PAGE>

                               Vesting Schedule
                               ----------------

          Date                    Number of Option Shares First Becoming Vested
          ----                    ---------------------------------------------

       ---------------                                      ----------------
       ---------------                                      ----------------
       ---------------                                      ----------------

          B.   Partial Exercise.  Subject to the terms of the Plan, this Option
               ----------------
(to the extent vested as provided in Paragraph 5A above) may be exercised for
all or any part of the Option Shares.

          C.   Method of Exercising Option.  Subject to Paragraph 5A above, any
               ---------------------------
Option granted hereunder or any portion thereof may be exercised by the Optionee
by delivering to the Company at its main office (attention of its Secretary)
written notice which shall set forth the Optionee's election to exercise a
portion or all of his Option, the number of shares with respect to which the
Option rights are being exercised and such other representations and agreements
as may be required by the Company to comply with applicable securities laws and
by paying in full the purchase price of the shares purchased in cash or its
equivalent or, subject to the approval of the Committee, pursuant to one of the
alternative methods set forth in Paragraph 9B of the Plan.

          D.   Nonassignability of Option.  The Option shall not be assignable
               --------------------------
or transferrable by the Optionee except by will or by the laws of descent and
distribution.  Any distributee by will or by the laws of descent and
distribution shall be bound by the provisions of the Plan and this Agreement.
During the life of the Optionee, the Option shall be exercisable only by the
Optionee.  Any attempt to assign, pledge, transfer, hypothecate or otherwise
dispose of the Option, and any levy of execution, attachment or similar process
on the Option, shall be null and void.

          E.   Termination of Employment other than as a Result of Death or
               ------------------------------------------------------------
Disability.  If Optionee ceases to be an Employee other than as a result of his
- ----------
death or disability (as defined in Paragraph F below), then the Option shall be
exercisable only to the extent exercisable on the date of termination of
employment and must be exercised on or before the date that is three (3) months
following the date of termination of employment.  To the extent any portion of
the Option is not exercisable on the date of termination of employment, such
portion of the Option shall terminate on the date of termination of employment.
To the extent any portion of the Option is not exercised within the time period
provided, such portion of the Option shall terminate as of the date of
expiration of such time period.  Nothing in the Plan shall be construed as
imposing any obligation on the Company to continue the employment of Optionee or
shall interfere or restrict in any way the rights of the Company to discharge
Optionee at any time for any reason whatsoever, with or without cause.

          F.   Termination of Employment as a Result of Death or Disability.  In
               ------------------------------------------------------------
the event of the death or disability of the Optionee while in the employ of the
Company, the personal representative of the Optionee (in the event of his death)
or the Optionee (in the event of his

                                       2
<PAGE>

disability) may, subject to the provisions hereof and before the earlier of the
Option's expiration date or the expiration of one (1) year after the date of
such death or disability, exercise the Option granted to the Optionee to the
same extent the Optionee might have exercised such Option on the date of his
death or disability, but not further or otherwise. To the extent any portion of
the Option is not exercisable at the date of the death or disability of the
Optionee, such portion of the Option shall terminate on the date of death or
disability. To the extent any portion of the Option is not exercised within the
time period provided, such portion of the Option shall terminate as of the date
of expiration of such time period. For purposes of this Paragraph F the Optionee
shall be considered to be subject to a disability when the Optionee is disabled
within the meaning of Code Section 22(e)(3), and the date of any such disability
shall be deemed to be the day following the last day the Optionee performed
services for the Company.

          G.   Period to Exercise Option.  The Option granted hereunder may,
               -------------------------
prior to its expiration or termination, be exercised from time to time, in whole
or in part, up to the total number of Option Shares with respect to which it
shall have then become exercisable.  An Option granted hereunder may become
exercisable in installments as determined by the Committee; provided, however,
that if the Option is exercisable in more than one installment, and if the
employment of the Optionee is terminated, then the Option (or such portion
thereof as shall be exercisable in accordance with the terms of this Agreement)
shall be exercisable during the period set forth in Paragraph E or F (whichever
is applicable).

          H.   No Exercise after Ten Years.  The Option shall in no event be
               ---------------------------
exercisable after ten (10) years from the date hereof.

          I.   Issuance of Stock Certificates Upon Exercise.  Subject to the
               --------------------------------------------
provisions of Item 6 of this Agreement, upon receipt of the Exercise Price for
any Option Shares, the Company will issue to Optionee shares of Common Stock
equal to the number of such Option Shares; provided, however, that no stock
certificate shall be issued to the Optionee pursuant to the exercise of any
Option granted herein, in whole or in part, unless and until either:  (i) the
Option Shares have been registered in accordance with the rules of the SEC, or
(ii) Optionee signs an Investment Letter in a form provided by the Company.

     6.   Restriction on Issuance of Shares; Optionee's Representations.
          -------------------------------------------------------------

          A.   Securities Laws - Restrictions on Issuance of Shares.  No shares
               ----------------------------------------------------
of Common Stock shall be issued or sold upon the exercise of any portion of the
Option unless and until (i) the full amount of the Exercise Price has been paid
as provided in Item 5C hereof and (ii) the then applicable requirements of the
Securities Act of 1933, and the applicable securities laws of any state, the
rules and regulations of the Securities and Exchange Commission and any other
regulations of any securities exchange on which the Common Stock may be listed,
shall have been fully complied with and satisfied.

          B.   Purchase for Investment; Other Representations of Optionee.  In
               ----------------------------------------------------------
the event the offering of shares with respect to which the Option is being
exercised is not registered under the Securities Act of 1933, but an exemption
is available which requires an investment representation or

                                       3
<PAGE>

other representation, the Optionee shall, as a condition to exercise of this
Option, be required to execute such documents as may be necessary or advisable
in the opinion of counsel for the Company to comply with any federal securities
laws or any applicable state securities laws. Stock certificates evidencing such
unregistered shares acquired upon exercise of the Option shall bear a
restrictive legend in substantially the following form and such other
restrictive legends as are required or advisable under the provisions of any
applicable laws:

          This stock certificate and the shares represented hereby
          have not been registered under the Securities Act of 1933,
          as amended (the "Act") nor under the securities laws of any
          state and shall not be transferred at any time in the
          absence of (i) an effective registration statement under the
          Act and any other applicable state law with respect to such
          shares at such time; or (ii) an opinion of counsel
          satisfactory to the Company and its counsel to the effect
          that such transfer at such time will not violate the Act or
          any applicable state securities laws; or (iii) a "no action"
          letter from the Securities and Exchange Commission and a
          comparable ruling from any applicable state agency with
          respect to such state's securities laws.

          C.   Holding Period Before Sale of Option Shares.  If the Optionee is
               -------------------------------------------
an insider subject to the SEC's rules under Section 16(b) of the Securities and
Exchange Act of 1934, then the Optionee shall be restricted from selling any
Option Shares acquired by him through exercise of the Options or any portion
thereof during the six (6) month period following the date of grant of the
Option.

     7.   No Rights as a Shareholder.  The Optionee shall not have any rights as
          --------------------------
a shareholder with respect to any Option Shares covered by the Option granted
hereunder until the issuance of a stock certificate for such shares.  No
adjustment shall be made on the issuance of a stock certificate to the Optionee
as to any dividends or other rights for which the record date occurred prior to
the date of issuance of such certificate.

     8.   Binding Effect.  This Agreement shall be binding upon the executors,
          --------------
administrators, heirs, legal representatives and successors of the parties
hereto.

     9.   No Employment Rights.  This Agreement shall not confer upon Optionee
          --------------------
any right with respect to the continuance of employment by the Company, nor
shall it interfere in any way with the right of the Company to terminate such
employment at any time.

     10.  Governing Law.  This Stock Option Agreement shall be governed by and
          -------------
construed in accordance with the laws of the State of Georgia.

     11.  Notices.  All notices and other communications under this Agreement
          -------
shall be in writing, and shall be deemed to have been duly given on the date of
delivery if delivered personally or three days after being mailed to the party
to whom notice is to be given, by certified mail, return receipt requested,
postage prepaid, and addressed as follows, until any such address is changed by

                                       4
<PAGE>

notice duly given:

          To Optionee at:     The address indicated below Optionee's signature

          To Company at:      AirTran Holdings, Inc.
                              9955 AirTran Boulevard
                              Orlando, Florida  32827
                              Attn: Joseph B. Leonard

     12.  Enforcement.  If any portion of this Agreement shall be determined to
          -----------
be invalid or unenforceable, the remainder shall be valid and enforceable to the
extent possible.

     IN WITNESS WHEREOF, this Agreement has been duly executed on the date first
above written.


OPTIONEE:                                    AIRTRAN HOLDINGS, INC.



_____________________________(SEAL)          By:__________________________
                                                Joseph B. Leonard

Address:__________________________           Title:  Chairman of the Board,
        __________________________                   President and Chief
                                                     Executive Officer

                                       5

<PAGE>

                ELLIS, FUNK, GOLDBERG, LABOVITZ & DOKSON, P.C.

                                ATTORNEYS AT LAW
DONALD J. ELLIS              ONE SECURITIES CENTRE
DAVID I. FUNK                      SUITE 400            OF COUNSEL:
ROBERT B. GOLDBERG (GA&SC)     3490 PIEDMONT ROAD       RUSSELL H. KASPER, P. C.
ALBERT L. LABOVITZ (GA&AL)   ATLANTA, GEORGIA 30305
ROBERT N. DOKSON                  404-233-2800
       ____
DAVID G. HESTER (GA&NC)     FACSIMILE   404-233-2188


                                 July 12, 1999                         EXHIBIT 5
                                                                       ---------

AirTran Holdings, Inc.
9955 AirTran Blvd.
Orlando, Florida 32827

     Re:  AirTran Holdings, Inc. Registration Statement on Form S-8
          ---------------------------------------------------------

Gentlemen:

     At your request we have examined the Registration Statement on Form S-8
filed by AirTran Holdings, Inc. (the "Company"), a Nevada corporation, with the
Securities and Exchange Commission with respect to the registration under the
Securities Act of 1933, as amended, of 5,000,000 shares of Common Stock, $.001
par value per share, of the Company (the "Common Stock") issuable by the Company
upon the exercise of options that have been granted or may be granted under the
Company's 1996 Stock Option Plan (the "Option Plan").

     As your counsel, and in connection with the preparation of the Registration
Statement, we have examined the originals or copies of such documents, corporate
records, certificates of public officials, officers of the Company and other
instruments relating to the authorization and issuance of the Common Stock as we
deemed relevant or necessary for the opinion herein expressed.

     Upon the basis of the foregoing, it is our opinion that the Common Stock to
be issued and sold by the Company under the Option Plan will be, upon exercise
of the options in accordance with the terms of the Option Plan (including
payment by the optionee of the option exercise price) and issuance of shares by
the Company, legally issued, fully-paid and nonassessable.

     We hereby consent to the use of this opinion as an exhibit to the
Registration Statement and further consent to the use of our name in the "Legal"
section of the Registration Statement, including the Prospectus constituting a
part thereof, and any amendments thereto.

                                             Yours truly,

                                             ELLIS, FUNK, GOLDBERG, LABOVITZ
                                             & DOKSON, P.C.

                                             By: /s/ Robert B. Goldberg
                                                 -------------------------------
                                                 Robert B. Goldberg

<PAGE>

                                                                    EXHIBIT 23.1


              CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS


We consent to the incorporation by reference in the Registration Statement on
Form S-8 pertaining to the AirTran 1996 Stock Option Plan of our report dated
January 29, 1999, with respect to the consolidated financial statements and
schedule of AirTran Holdings, Inc. included in its Annual Report (Form 10-K) for
the year ended December 31, 1998, filed with the Securities and Exchange
Commission.


                                                     ERNST & YOUNG LLP


Atlanta, Georgia
July 12, 1999



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