NWAFA
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ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:37 am

ATA files for Ch. 11 bankruptcy
Airline reports $940 million in debt
By Matt Andrejczak, CBS.MarketWatch.com
Last Update: 5:31 PM ET Oct. 26, 2004
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SAN FRANCISCO (CBS.MW) -- ATA Holdings Corp., parent of ATA Airlines, filed for Chapter 11 bankruptcy protection late Tuesday.




The low-fare carrier listed its total assets at $745.1 million and its debt at $940.5 million, according to its filing in the U.S. Bankruptcy Court for the Southern District of Indiana.

Ahead of the filing, shares of Indianapolis, Ind.-based ATA tumbled 36 percent to 93 cents. The stock was halted in after-hours trading.

ATA, the nation's 10th largest airline, joins US Airways Group and United Airlines parent UAL Corp. in Chapter 11 bankruptcy. Delta Air Lines has threatened to file for bankruptcy if cannot drastically cut operating costs. New low-fare carrier Independence Air might also run into difficulties early next year, analysts say.

Late Monday ATA appointed Gilbert Viets chief restructuring officer, while David Wing returned as chief financial officer after leaving the company in June.

For the six months ended June 30, ATA (ATAH: news, chart, profile) posted a loss of $90 million, or $7.38 a share.

The airline has been stung by fuel costs, lower U.S. ticket prices resulting from competition, and weaker revenue from its military/charter business.

ATA last week said its financial condition has worsened since it first warned of its precarious state in mid-August. It also announced plans to cut 220 jobs, or 3 percent of its work force.

It's unlikely the airline will have sufficient funds to meet cash obligations in the first quarter of 2005, according to its quarterly filing with the Securities and Exchange Commission.

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NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:40 am

To all the ATA employees, Good luck!
THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
 
Cory6188
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:44 am

Everyone here has been saying how the legacies are dying as a result of their own bloated companies with extremely high overhead. Clearly, bankruptcy is not only affecting the legacies and is now getting to the LCCs. Within a few years, the entire airline industry as we know it could collapse, with maybe WN (and possibly CO, although even they're unstable) left over.
 
Byrdluvs747
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:47 am


WN (and possibly CO, although even they're unstable) left over.


I'd rather not fly at that point.
The 747: The hands who designed it were guided by god.
 
NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:50 am

Byrd,

If WN went to BK I would be with you!

In the report, it said nothing about AirTran like people have been saying.
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AA717driver
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:51 am

I don't know if it means anything but there were an unusually large number of ATA planes arriving at IND this afternoon. Several more than normal.TC
FL450, M.85
 
NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:53 am

That very interesting AA717...if they filed Chapter 7 that would make total sense.....
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DAYflyer
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:55 am

IMO, ATA's woes are another indicator of overcapacity that prevails in the industry. There is a large shake-up coming within the industry in 2005. Not many will survive.
One Nation Under God
 
jetbluefan1
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:59 am

Everyone here has been saying how the legacies are dying as a result of their own bloated companies with extremely high overhead. Clearly, bankruptcy is not only affecting the legacies and is now getting to the LCCs.

I wouldn't exactly call ATA a true LCC. It's more or less comparable to Alaska as far as categorizing, IMO.

Good luck to ATA. I heard that they offer a decent product and it's never good to see an airline go.

JetBluefan1
 
NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 6:59 am

DAY,

I think you are correct there is over capacity and I think 2005 is going to be the shake up year.
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flyinryan99
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:08 am

AirTran takes MDW/LGA/DCA ops.......Will update more when it comes available.


Ryan
 
NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:12 am

Here is what AP is report in regards to AirTran:

ATA Holdings Corp. Files for Chapter 11 Reorganization
Tuesday October 26, 6:06 pm ET
* Maintains flight schedule, operations, customer service and travel rewards programs * Enters agreement with AirTran Airways, Inc. to operate and acquire routes at Chicago Midway, Ronald Reagan Washington National and LaGuardia Airports * Indianapolis to remain ATA's headquarters and primary hub * ATSB allows use of cash collateral in advance of securing debtor-in- possession (DIP) financing


INDIANAPOLIS, Oct. 26 /PRNewswire-FirstCall/ -- ATA Holdings Corp., (Nasdaq: ATAH - News), the nation's 10th largest passenger carrier, today announced that it and certain subsidiaries, including ATA Airlines, Inc., have filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030929/ATAHLOGO-b )
ATA emphasized that it continues business as usual. The airline stands by its customer commitments, honoring tickets, upholding its full flight schedule, in-flight services and frequent flyer reward programs.

With this move, ATA will develop a plan of reorganization to address its debt levels and other obligations, and to lower its cost structure even further, while operating in the normal course of business. The reorganization will allow the airline to restore and strengthen its competitiveness as a leading low cost carrier in the challenging industry environment, and to advance existing initiatives to improve its services, such as retrofitting planes for business class service.

"Excess capacity, extremely high fuel prices, which continue to escalate, and declining fares have necessitated that all airlines, including ATA, re- examine their business," said ATA Holdings' Chairman, President and Chief Executive Officer George Mikelsons. "As we transform, we maintain our focus on serving customers, while flying one of the youngest, most fuel-efficient fleets among the major carriers. ATA will continue to provide value-based everyday, low fares and service that makes the travel experience easier and more affordable for all our business and leisure travelers."

Agreement with AirTran Airways, Inc.

ATA reported that, in conjunction with the filing, the airline has reached an agreement with AirTran Airways, Inc. (NYSE: AAI - News) in which AirTran will pay ATA $87.6 million to assume ATA's flight operations, gates lease, and routes in Chicago Midway Airport, as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport. The agreement, which is subject to approval by the City of Chicago and the Bankruptcy Court, will take effect later this year or early next year, and is to be finalized over the next several days.

ATA is in continuing discussions with potential third-party lenders to procure Debtor-In-Possession (DIP) financing. Meanwhile, the Air Transportation Stabilization Board (ATSB) has agreed to allow ATA's continued use of its cash collateral, which, combined with the Company's projected cash flow from operations, should be sufficient to fund the needs of ATA and its operating subsidiaries until the Company reaches an agreement for DIP financing.

"Our arrangement with AirTran will grow the travel options we offer customers, and is a key component of our transformation into a refocused, streamlined and profitable airline," continued Mikelsons. "We remain committed to serving Midway customers during this transition, while also having the significant support of one of the strongest low cost carriers."

AirTran and ATA intend to establish co-marketing programs and code share agreements for flights operating into and out of Chicago Midway. There is a transition plan in place for AirTran to outsource to ATA servicing of Chicago flights over a specified period. The transition arrangements with AirTran will allow ATA a gradual, measured exit from Chicago, as well as provide ATA time and flexibility to develop and execute its reorganization plan.

ATA passengers holding existing reservations for flights to and from Chicago Midway will be serviced seamlessly under their originally issued tickets, without the need for rebooking. Participants in ATA and AirTran frequent flyer programs will accrue and redeem miles on both airlines' networks.

Reorganizing to Emerge a Stronger Airline

Mikelsons also broadly outlined the key points of ATA's reorganization plan, which entails optimizing its fleet and plane sizes and focusing on the most profitable cornerstones of its business: commercial flights routed through its Indianapolis hub, flights to Hawaii, as well as military and some commercial charter service. ATA will continue to operate its Chicago Express connection service through Chicago Midway, as well as its Ambassadair Travel Club.

ATA also stressed its continued commitment to Indianapolis, which will remain the Company's headquarters and primary hub. Mikelsons continued, "Indianapolis has been a key source of our growth, and we will remain in the city we have called home since 1973."

To further ensure ATA's smooth operation, the Company has filed various first-day motions with the Bankruptcy Court that would allow it to, among other operations, continue timely payments to fuel vendors, employees and other service providers, as well as to assume clearinghouse and interline contracts.

Mikelsons added, "We have begun taking the difficult steps to transform ATA into an airline that is positioned to meet the needs of our customers today and for the future. Our agreements with AirTran, combined with ATSB's flexibility, will facilitate ATA's transformation into a formidable low-fare competitor, capable of winning in today's airline industry environment for our customers, employees, creditors, and other stakeholders."

ATA has faced significant financial and operational challenges stemming from the slowdown of the economy, the tragic events of September 11, 2001, pricing pressure, major increases in fuel costs, which have not yet abated, and losses of revenue and bookings in its important Florida market due to four hurricanes this summer. Changes in consumer behavior, particularly the reduction in business travel and the changes in business travel patterns, have led to a significant drop in revenues due, in part, to ATA's large aircraft. ATA determined that the Chapter 11 process offered the Company the most viable way to restructure its operations and finances to remain competitive.

About ATA Airlines

Now in its 31st year of operation, ATA (Nasdaq: ATAH - News) is the nation's 10th largest passenger carrier (based on revenue passenger miles) and one of the nation's largest low-fare carriers. ATA has one of the youngest, most fuel- efficient fleets among the major carriers, featuring the new Boeing 737-800 and 757-300 aircraft. The airline operates significant scheduled service from Chicago-Midway, Hawaii, Indianapolis, New York and San Francisco to over 40 business and vacation destinations. Stock of parent company, ATA Holdings Corp., is traded on the Nasdaq Stock Exchange. For more information, visit the web site http://www.ata.com .

Certain of the information contained in this press release should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect ATA's current views with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of ATA and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the companies to continue as going concerns; the ability of the companies to operate pursuant to the terms of the debtor-in-possession financing facility; the companies' ability to obtain bankruptcy court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the ability of the companies to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; risks associated with third parties seeking and obtaining bankruptcy court approval to terminate or shorten the exclusivity period for the companies to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies' ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the companies' liquidity or results of operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives and associates; the ability of the companies to attract and retain customers; demand for transportation in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack, labor costs; financing costs; the costs and availability of aircraft insurance; aviation fuel costs; security-related costs; competitive pressures on pricing (particularly from lower-cost competitors); weather conditions; government legislation and regulation; consumer perceptions of the companies' products and services; and other risks and uncertainties set forth from time to time in ATA's reports to the United States Securities and Exchange Commission.



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Kohflot
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:26 am

Correct me if I'm way off, but it looks like these are ATA's domestic nonstops from MDW:

BOS, LGA, EWR, PHL, DCA, PIT, CLT, MCO, FLL, MIA, RSW, TPA, DFW, DEN, PHX, LAS, LAX, SFO, and SEA.

The only of those that AirTran doesn't currently serve are CLT, PHX, and SEA.

There also seems to be no mention of what happens to the 737-800s.

[Edited 2004-10-27 00:27:15]
Ask why..
 
jmc1975
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:27 am

You mean BK Broiler, right?
.......
 
ouboy79
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:27 am

I don't expect ATA to hold on to C8 forever.

I would like to see AirTran look at the major C8 markets and move in to serve those markets. FNT and DAY are givens.
 
vanguard737
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:27 am

Here is Mickelson's letter to the employees (me)

Dear Colleagues:
>
> Today marks a milestone for ATA as we begin our transformation into a
> refocused, streamlined and profitable airline. The steps we are taking
> will help assure our future for our employees, customers and the cities we
> serve.
>
> Our parent company, ATA Holdings Corp. and certain subsidiaries, including
> ATA Airlines, Inc., have filed for relief under Chapter 11. This means we
> intend to restructure our debt and to continue business as usual. We will
> stand by our customer commitments, honoring tickets, upholding our full
> schedule, in-flight services and frequent flyer reward programs.
>
> Along with the filing, we have reached an agreement with AirTran Airways,
> Inc in which AirTran will assume our flight operations, gates lease, and
> routes in Chicago Midway Airport as well as arrival and departure slots at
> LaGuardia Airport and Ronald Reagan Washington National Airport. The
> agreement, which needs the City of Chicago's approval, will take effect
> later this year or early next year, and is to be finalized over the next
> several days.
>
> We are in continuing discussions with potential third-party lenders to
> procure Debtor-In-Possession (DIP) financing. Meanwhile, the ATSB has
> agreed to allow us continued use of our cash collateral, which, combined
> with the Company's projected cash flow from operations, should be
> sufficient to fund the needs of ATA and our operating subsidiaries until
> we reach an agreement for DIP financing.
>
> Our agreement with AirTran is key to our transformation
> By re-structuring and partnering with AirTran, we intend to re-create ATA
> as a formidable low-cost, albeit smaller competitor, capable of winning in
> today's airline industry for our customers, employees, creditors and other
> stakeholders. Together, ATA and AirTran will establish co-marketing
> programs and code share agreements across both carriers' flight networks.
>
>
> As part of the agreement, AirTran intends to outsource to us the servicing
> of Chicago flights and pay us service fees over a specified transitional
> period. These transition arrangements will allow us a gradual, measured
> exit from Chicago, as well as provide the time and flexibility we need to
> develop and execute our reorganization plan and to optimize our fleet and
> plane sizes.
>
> Reorganizing to emerge a stronger airline
> Reorganizing will strengthen our business and competitive position, and
> give us the resources to emerge a stronger airline. Our plan entails
> optimizing our fleet and plane sizes and focusing on the most profitable
> cornerstones of its business: commercial flights routed through our
> Indianapolis hub, flights to Hawaii, military and some commercial charter
> service. We also intend to retain our Chicago Express connection service
> through Chicago Midway, as well as its Ambassadair Travel Club.
>
> Business as Usual
> We will continue operating business as usual while we reorganize and
> execute our arrangement with AirTran. As we transform, we will maintain
> our focus on serving customers with one of the youngest, most
> fuel-efficient fleets and providing value-based everyday, low fares and
> service that makes the travel experience easier and more affordable for
> all our business and leisure travelers. We will also continue to improve
> our services, such as retrofitting planes for business class service,
> which we expect to complete by early 2005.
>
> Chicago Midway is an important and valuable hub for ATA. We employ
> hundreds of highly qualified and dedicated employees - ramp agents, flight
> and cockpit crews, customer service agents, aircraft mechanics - that
> provide a high level of passenger service, safety and security to
> thousands of passengers every day.
>
> After the agreement with AirTran, Chicago Midway will continue to need
> hundreds of qualified and dedicated employees - ramp agents, flight and
> cockpit crews, customer service agents, aircraft mechanics. Our Midway
> employees are critical to the success of this transition and our
> collective future.
>
> Just as importantly, we are committed to Indianapolis, which will continue
> to serve as ATA's headquarters location and primary hub. Indianapolis has
> been a key source of our growth, and we will remain in the city we have
> called home since 1973.
>
> I know that you are all worried about the implications of this filing for
> you personally and your ability to do your job. Let me assure you that we
> are committed to paying employee salaries, wages and benefits without
> interruption and through the normal processes.
>
> In order for us to stand by our customer commitment to business as usual,
> I ask you to continue providing the same high level of passenger service,
> safety and security as well as operational excellence. I am counting on
> everyone to continue providing that high level of service and value that
> our customers expect and appreciate.
>
> What's Next
> Over the next few days we intend to finalize the details of our agreement
> with AirTran. In addition, as part of the reorganization we will continue
> to pursue necessary cost reductions across the company and implement a
> compelling plan of reorganization. ATA's operating costs are among the
> lowest in the industry but must continue to be addressed to achieve
> profitability.
>
> As part of this process, we will look at every element of our operations.
> Once we have completed further work on a solid plan of reorganization, we
> will submit it to our creditors and the court for approval.
>
> Keeping You Informed
> We will continue to communicate openly and regularly, and to share
> information as it becomes available. We have created a special section on
> EWS to keep you posted of the progress we make over the next few months.
> You can find the link on the home page, as well as a link to the special
> section of ATA.com. In addition, we will continue to post a new issue of
> Info Line each week on EWS. And I am personally committed to communicating
> directly with you as we move through this process.
>
> Again, let me say how much your unfaltering dedication and loyalty
> continues to impress me. Thank you for this commitment to ATA. Keep your
> heads up.
>
> Sincerely,
>
> GEORGE MIKELSONS
> Chairman & CEO
320 717 722 732 733 735 737 738 744 752 753 763 772 DC9 DC10 MD80 B1900 S340 E120 ERJ CRJ CR7
 
NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:29 am

Does anyone know where ATA got the MDW gates in the 1st place?
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Tom in NO
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:30 am

To those of us who have commented in the past on the ability of ATA to transfer the gate leases at MDW to another airline (I believe at the time, we were mentioning WN as a possibility), I've highlighted the section of the press release that denotes that such transfers require the approval of the City of Chicago (the airport operator):

"ATA reported that, in conjunction with the filing, the airline has reached an agreement with AirTran Airways, Inc. (NYSE: AAI - News) in which AirTran will pay ATA $87.6 million to assume ATA's flight operations, gates lease, and routes in Chicago Midway Airport, as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport. The agreement, which is subject to approval by the City of Chicago and the Bankruptcy Court, will take effect later this year or early next year, and is to be finalized over the next several days."

Tom at MSY
"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina
 
Mexicana757
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:31 am

I wish ATA and it's employees good luck. Well it seems we are going to now have more of Airtran in Chicago. I wonder what routes they will keep and which they will let go.

By Airtran taking over the Chicago operations will they assume all of the ATA employees?
 
NWAFA
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:34 am

Mexicana,

Nothing said about that..time will tell in regards to what will happen to the staff in MDW.

Good Luck ATA folks!!
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nosedive
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 7:51 am

I'm wondering 3 things:
1) How much of an increase, if any, will IND see in TZ 2) what will FL's route map look like out of MDW and 3) how will this affect FL's expansion at DFW?

I'm assuming if FL needs more planes to cope with this that they will be looking at TZ's 738 very closely, or they could possibly talk to Ryan Int'l about leasing another batch of 320s. But I doubt that TZ will move into MDW until sometime next spring at the earilest. Of course, this all is assuming that Chicago will approve everything in the next few days...
 
NWAFA
Topic Author
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 8:02 am

It is just way to early to even guess how this will all play out, but for ATA it is not good....
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dutchjet
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 8:23 am

Interesting that nothing at all has been said about aircraft, AirTran will get a variety of items from ATA but not any airplanes.......could be because they are not ATA's to sell. Will ATA now try to renegotiate and assign the 738 leases to AirTran under the jurisdiction of the bankruptcy court; who owns the ATA 738s, is it Boeing's leasing subsidiary? Being that AirTran and Boeing have worked very closely in the past, the 738s will probably find a new home with ATA.

Some other unanswered questions:

1. What is the future of the ATA 757s? Some will be leaving the ATA fleet - is this where HP comes into the picture?
2. What scheduled operations out of Indy will be operated? and by what aircraft?

I also dont really understand what is meant by AirTran "outsourcing" operationg to ATA and a co-marketing program to ease the transition.....it all seems so vague.....does ATA really have a deal with AirTran to take to the bankruptcy court?




 
yanksn4
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 8:49 am

Does anyone know what are ATA's most profitable domesitc (excluding hawaii) routes?
2013 Airports: EWR, JFK, LGA, LIS, AGP, DEN, GIG, RGN, BKK, LHR, FRA, LAX, SYD, PER, MEL, MCO, MIA, PEK, IAH
 
Okie
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 8:53 am

I think Dutchjet is on the money with the leaseholders of the aircraft.

I am sure there was significant talks before hand with the leaseholders of the aircraft that has not shown up on the news.
You can rest assured that ATA was in as significant trouble long before they declaired BK that the leaseholders were in some sort of negotiation well before hand.

Okie
 
ramerinianair
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 8:53 am

"After the agreement with AirTran, Chicago Midway will continue to need
> hundreds of qualified and dedicated employees - ramp agents, flight and
> cockpit crews, customer service agents, aircraft mechanics. Our Midway
> employees are critical to the success of this transition and our
> collective future."

He makes it sound like, when we cut your jobs you can goto FL, who will need the same type of workers.
SR
Best of luck to the Employees!!
W N = my Worst Nightmare!!!!!
 
CcrlR
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:15 am

To all the ATA employees, Good luck!

Well we'll see what happens here, we got some students who work for TZ here.
"He was right, it is a screaming metal deathtrap!"-Cosmo (from the Fairly Oddparents)
 
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BNE
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:17 am

So many unanswered questions, how big is Airtran going to get, how much does ATA scale back. whats happening to the 757s.

BOS, LGA, EWR, PHL, DCA, PIT, CLT, MCO, FLL, MIA, RSW, TPA, DFW, DEN, PHX, LAS, LAX, SFO, and SEA.

Finally we might see Airtran in CLT,
Why fly non stop when you can connect
 
gigneil
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:28 am

in which AirTran will pay ATA $87.6 million to assume ATA's flight operations, gates lease, and routes in Chicago Midway Airport, as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport.

Um. DCA slots are not transferrable under any circumstances. You can't buy and sell them to each other.

N
 
ordflyer
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:29 am

He makes it sound like, when we cut your jobs you can goto FL, who will need the same type of workers.
That's the way I read it too...hopefully all or at least most of the current MDW employees will be able to keep jobs with AirTran. As a former TZ ramper at MDW and having several friends still there, I certainly wish them the best in the coming months.
 
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STT757
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:33 am

"DCA slots are not transferrable under any circumstances. You can't buy and sell them to each other."

I think that only refers to newly awarded or routes like DCA-PHX that are beyond the perimeter that Congress approved, when Eastern folded NWA bought their DCA slots and set up a mini hub before selling most of it to US Air.
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
gigneil
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:39 am

That's possible, STT757. But also it may be possible that the law changed.

When US purchased Midway and started using their slots, the Government fined them and made the slots immediately available for bid.

Midway's slots were all inside-perimeter.

N
 
GroundStop
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:43 am

Regarding the DCA slots, I am fairly certain that representatives from both sides would have done some research as to the feasibility of transferring the slots.
 
gigneil
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:45 am

You'd think that, yes. But as I indicated, US made the same mistake not too terribly long ago.

N
 
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STT757
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:53 am

In 2000 during that whole UAL/US merger debacle CO offered $400 Million for Us Airways DCA slots and gates, so obviously they can be bought and sold. It's the newly awarded routes Congress has opened up in the last couple years that cannot be transfered, like the DCA-LAX flight TWA had that AA could not aquire. That was a new route, as are DCA-SEA, DEN, PHX, LAS etc..
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N1120A
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:53 am

>I'm assuming if FL needs more planes to cope with this that they will be looking at TZ's 738 very closely, or they could possibly talk to Ryan Int'l about leasing another batch of 320s. But I doubt that TZ will move into MDW until sometime next spring at the earilest. Of course, this all is assuming that Chicago will approve everything in the next<

FL has been very unhappy with the fees they have had to pay Ryan International for the A320s, Losing money on LAS and just scratching a profit on LAX (where they should be cashing in with no competition from B6 and DL being the only other carrier on the route). They have a massive order with Boeing, but Boeing can't build planes that fast, so I am guessing that they will be sub-leasing the 738s from TZ until they can negotiate a deal to take them over. They already have 737 pilots to cycle in, along with ATA's pilots, who they can take on, and have training facilities in place.

As far as their planes go, ATA owns N329TZ, 330TZ, 332-335TZ and 337-339TZ (All 738s). The lease the others from both ILFC and WFBN. Those are both big leasing companies, so likely they will be shopping the planes (which are in heavy demand) to the highest bidder. I would guess ATA and FL are working out a deal to sell the 9 738s ATA owns, but the others are up in the air.

>I think that only refers to newly awarded or routes like DCA-PHX that are beyond the perimeter that Congress approved, when Eastern folded NWA bought their DCA slots and set up a mini hub before selling most of it to US Air.<

DCA slots are fully transferable, if they are not beyond perimeter. Within the perimeter, if you have a slot, you can fly.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
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EA CO AS
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 9:56 am

Actually, that's true - the "beyond the perimeter" slots cannot be transferred or sold, even if a carrier is purchased outright. The slots go back into the hopper for other carriers to bid on.

This is how AS was originally awarded their SEA-DCA authority in 2001. Upon AA's purchase of substantially all of TW's assets in bankruptcy, the LAX-DCA beyond the perimeter slot authority that TW held went back up for bid, which AS was awarded for SEA-DCA use.

"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
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alberchico
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 10:10 am

Well this is a very dynamic industry,and the last three years have been rough on all the airlines in this country.Even if ATA goes,another more cost efficent airline will rise up to take it's place.If this goes on ,within a decade we could have a whole new generation of airlines on the scene.
short summary of every jewish holiday: they tried to kill us ,we won , lets eat !
 
quickmover
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 10:13 am

Could it be that by going the wet lease route (instead of taking on aircraft ownership immediately), the bankruptcy court would be more likely to approve the plan. This basicaly keeps things going as they are now with minimal disruption to employees and creditors.
 
N1120A
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RE: ITS OFFICIAL- ATA Files For BK

Wed Oct 27, 2004 10:22 am

What is funny is that when National's LAS-DCA slots went back in for bid, just about everyone bid for them from LAX and AS got them, pissing off UA.

Also, the problem US was having in the merger with UA was not selling the slots to UA, they were selling the whole airline to UA. The DOT said, as one of the conditions, they would have to divest a great deal of DCA slots, as they would control a ridiculous number. Then the guy from BET came in with the DC Air idea, which the DOT saw for what it was, a front set up by UA to keep other majors from getting a bigger foothold there. Again, this did not have to do with selling the slots, it had to do with the size of the airline and anti-trust. If US decided to sell them to a carrier like CO, without as big a DCA presence, they would be allowed to (then again, IAH is OP).
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss

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