NWAFA
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HP Pulls Out On ATA

Fri Dec 10, 2004 5:08 am

America West Declines Opportunity to Submit Bid for ATA Assets
Thursday December 9, 3:00 pm ET


PHOENIX, Dec. 9 /PRNewswire-FirstCall/ -- America West Holdings Corporation (NYSE: AWA - News), parent company of America West Airlines, Inc., today announced it does not plan to submit a bid to the U.S. Bankruptcy Court to purchase ATA Holdings Corp. (OTC: ATAHQ - News). America West had previously announced it was considering acquiring ATA through that airline's Chapter 11 restructuring process.

America West Chairman and Chief Executive Officer Doug Parker said, "We have stated from the beginning of this process that we would not proceed with any transaction that would put undue risk on America West's employees, customers or stockholders. While we believe there is some value in a combined America West/ATA operation, we do not believe the potential value justifies the anticipated cost.

"Our interest in ATA encompassed acquiring the entire company as opposed to only a few select assets, which meant we needed most of the aircraft and employees to stay with the company. During this process we found we were able to attract sufficient capital to support a competitive bid and we are grateful to our partners for their offers of support. We particularly appreciate the support we received from the employees of ATA. We are hopeful that whoever ends up owning ATA will recognize the value of this dedicated and experienced workforce. Unfortunately, we were unable to come to acceptable lease terms on enough aircraft with ATA's existing aircraft lessors.

"We feel very good about the decision to refrain from this bidding process. As the nation's second largest low cost carrier we are well positioned for long-term success in a rapidly evolving airline environment. Because our current aircraft orders satisfy our near-term growth plans, we are not compelled to stretch to find places to fly. We feel confident there will be future growth and acquisition opportunities for America West as our industry evolves. While we have chosen to pass on this particular transaction, we look forward to playing a role in the continued consolidation of the airline industry."

America West Airlines is the nation's second largest low cost airline and the only carrier formed since deregulation to achieve major airline status. America West's 13,000 employees serve nearly 55,000 customers a day in 96 destinations in the U.S., Canada, Mexico and Costa Rica.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the future of the airline industry, growth plans and our prospects for success. These statements involve risks and uncertainties that could cause our actual results and financial position to differ materially from these statements, including, but are not limited to, the duration and extent of the current soft economic conditions; the impact of global instability including the continuing impact of the continued military presence in Iraq and Afghanistan and the terrorist attacks of Sept. 11, 2001 and the potential impact of future hostilities, terrorist attacks, infectious disease outbreaks or other global events; limitations on our ability to obtain additional financing due to high levels of debt and the financial and other covenants in our debt instruments; changes in federal and state laws and regulations; changes in prevailing interest rates and the availability of and terms of financing to fund our business; the ability to attract and retain qualified personnel; the cyclical nature of the airline industry; competitive practices in the industry; the impact of changes in fuel prices; relations with unionized employees generally and the impact and outcome of the labor negotiations and other factors described from time to time in our publicly available SEC reports. We caution you that these risks may not be exhaustive. We operate in a continually changing business environment, and new risks emerge from time to time. We undertake no obligation to publicly update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.



THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
 
ConcordeBoy
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:13 am

HP Pulls Out On ATA

...least we won't have to worry about any more little ATAs Big grin
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
NWAFA
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:17 am

LOL! Good One Concorde!!!

Im glad that HP is being careful here...I really thought it would have been too much for them to handle...I really like what HP has done and want them to succeed!
THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
 
FoxBravo
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:20 am

Haha, I saw that one coming a mile away.  Big grin

Anyhoo, I agree that this was a wise move on HP's part. Mergers and acquisitions in the airline industry are fraught with peril.
Common sense is not so common. -Voltaire
 
7e72004
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:31 am

It looks like AirTran's chances of winning the bid are 99.9999999999%  Smile
The next generation of aircraft is just around the corner!
 
PanAm747
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:35 am

I suppose somewhere someone is writing a textbook on airline acquisition. One chapter (that HP is obviously previewing) will be called "Don't Let This Happen To You", with examples of Pan Am/National and USAir/the zillions they took over.

HP realized, smartly, that this would not have been a good match. Maybe the 757's, but that's about it. It's easier to pick the carcass than assume the debt and try and integrate. Sad, but true.
Pan Am:The World's Most Experienced Airline - P(oor) S(ailor's) A(irline): San Diego's Hometown Airline-Catch Our Smile!
 
airtran737
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:49 am

Friggen Sweet!!!!! Good news for AirTran, I can't wait to hear the final results of all of this. MDW here I come.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
jacobin777
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:51 am

Would HP still be in a posistion to pick up ATA's 757's, especially the ETOPS ones? I know they would have loved to have those for routes to HNL...I suppose that AirTran won't be flying those 750's!
"Up the Irons!"
 
wjcandee
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:54 am

HP would have needed substantial working capital to take the losses until they could realize whatever synergies they saw. Frankly, I saw few.

I'm not persuaded that Airtran's offer necessarily succeeds now, although I suppose its chances have increased. Did anyone see the idiotic New York Times article this morning that said that Southwest's bid was "the best" "from a financial perspective"? I think the idiot author meant that Southwest had the strongest balance sheet, but that's not what she said. (She also stupidly said that Southwest is the only airline that will have a profit this year. Uh...hello? The *other one* is *Airtran*!!!!) Obviously, an offer that only takes over some gates and lets the airline otherwise die is not "the best from a financial perspective". Gosh, I hate the Times. And reporters who write about stuff they don't understand without making the slightest effort to understand it. I noticed that the same article, when reprinted in the Indy paper, had the offending passage removed.

Best,

Bill
 
Vortex
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:54 am

I would venture that HP will get the 757s from WN after WN buys the whole company because they want the gates and some of the 737s and doesn't want anybody else to get them.
 
quickmover
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:55 am

I've always thought the serious opposition to FL would come from WN. They have been talking alot lately about how MDW is their #1 priority and adding flights to look serious. I'm convinced WN will propose something, but who knows what?
 
Clipper002
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 5:59 am

Good to hear from you Bill. Just think I haven't had to read the Times since '85. Don't miss it at all either.

Ed
Ed
 
Okie
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 6:17 am

we were unable to come to acceptable lease terms on enough aircraft with ATA's existing aircraft leesors.

Whoever is carrying the leases on the aircraft obviously carrying a big stick and have a preferred customer in mind for the aircraft or an operator that they would prefer to operate some of TZ's old routes.

Any ideas?


Okie










 
qwerty
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 6:28 am

Would HP still be in a posistion to pick up ATA's 757's, especially the ETOPS ones?

I always thought the carrier was ETOPS certified, not the planes. Maybe I'm wrong or maybe it's both that need to be certified. Nonetheless, I agree that ATA might be interested in ATA's 757s.
 
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N328KF
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 7:58 am

Qwerty:

Yes, it goes without saying that ATA may be interested in holding onto their own 757s.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
travatl
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 8:03 am

LIke I said on the other post -

The simple reality is that, if you like it or not, the AirTran deal is a TOUGH deal to beat. A cash infusion, the holding company remains alive and independent, all of the MDW gates are spoken for, and ATA gets and receives traffic feed through a strong codeshare. The only realistic counter bid is one of the SAME deal for more money. That's it...

It's not the best for the employees, agreed, but when has corporate America ever cared about the employees? AirTran has been SHREWD in this deal - and I predict they will EASILY win...

Travis
 
DAYflyer
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 8:05 am

It looks like AirTran's chances of winning the bid are 99.9999999999%

Not so fast. Another article has speculated that JetBlue is placing a bid as well. This may not be over yet.
One Nation Under God
 
OPNLguy
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 8:11 am

>>>Not so fast. Another article has speculated that JetBlue is placing a bid as well. This may not be over yet.

Absolutely correct... The deadline isn't until tomorrow afternoon, and you can bet that there will be additional bids by then. SWA will make one, maybe JBLU, and maybe another couple...

I had to laugh at one media report that said SWA's offer was the best, since it hadn't been submitted yet...

Stay tuned...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
OPNLguy
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 8:58 am

ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
YVR2SAN
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 9:25 am

According to the article in reply 18 it did atleast appear that the ATSB gave HP its support in the bid for ATA but it came down to Asian carriers wanting the 737 aircraft and pushing the price up to a price HP did not want to pay.

Any ideas as to who these Asian carriers could be?
 
cactushp
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 9:28 am

I knew and that this whole thing could've been possible with HP placing a bid instead the other way around. But HP still has tons of loans to pay off and buying ATA, HP would have to put up with those too. Although if HP would've bought ATA, is would probaly look good in short-term, but, if HP wanted to stay in for the long run, it would've been suicide. Good move for America West.


CactusHP
Sorry, I was on the landline
 
AZjetgeek
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 9:57 am

Very wise decision by Mr. Parker and HP. I really don't see WN making a bonafide offer for ATA. They would have to unload the 757's and any other aircraft aside from their 737's. Too much hassle.

FL might be the more logical choice in this instance. It would further expand their Midwest base as well as possible give them an entrance into some of the markets in the West, including PHX. I just hope AirTran doesn't bite off more than it can chew.

I think one possibility might be for Frontier to make an offer. It would give F9 a foothold in the Midwest.
Long live the RJ!
 
OPNLguy
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 10:08 am

>>>I really don't see WN making a bonafide offer for ATA.

If by that you mean an offer for the whole chulupa, I'd agree, but I think SWA will be making an offer for a selected piece or two...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
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mariner
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 10:37 am

AZjetgeek:

I'd be very surprised if there was an offer from Frontier. They are busy housekeeping (fleet changeover, Sabre, etc), and they have said they do not intend to grow by merger.

cheers

mariner
aeternum nauta
 
nearord
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RE: HP Pulls Out On ATA

Fri Dec 10, 2004 1:52 pm

Come on guys, yall should know by know that this was just a smoke screen for HP's real take over target, Independence.

He He He.

 
elwood64151
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 3:59 am

I didn't think HP would go ahead with a purchase of TZ. They have a lot of debt. Manageable given HP's size, but still a heavy burden. If there were another shock to the industry, they'd be in big trouble.

America West Airlines is the nation's second largest low cost airline and the only carrier formed since deregulation to achieve major airline status

We'll see what happens this year with FL and B6 as far as that "major airline status" is concerned. Both were very close last year.
Those who fail to learn history are doomed to repeat it in summer school.
 
ATLhomeCMH
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 4:03 am

It's a shame...I was hoping HP would be able to set up an eastern hub at MDW...haven't been able to fly them much since they pulled out here at CMH...
"The most terrifying words in the Engligh language are, 'I'm from the government and I'm here to help.'"-Ronald Reagan
 
jacobin777
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 4:08 am

Qwerty..

" always thought the carrier was ETOPS certified, not the planes. Maybe I'm wrong or maybe it's both that need to be certified. Nonetheless, I agree that ATA might be interested in ATA's 757s."

u're right, its the carriers and not the aircraft....but at least we agree on the 757's....  Big grin
"Up the Irons!"
 
ltbewr
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 4:22 am

Another speculation of us A-netter's fails. Guess AirTran's part deal (mainly for MDW gates, some 737's) will go through. Maybe after ATA finalizes their Ch. 11 plan, some of the leased 757's will end up with HP, but at a better offer. HP is better off waiting for ATA to complete their plan. It is interesting the cite in one of the above posts that some Asian airlines are interested in the 737's? Who are the airlines involved and do they need them that badly they cannot wait for new ones from Boeing?
 
Byrdluvs747
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 5:37 am


During this process we found we were able to attract sufficient capital to support a competitive bid and we are grateful to our partners for their offers of support.


The above statement alone almost compensates for the bid withdrawal.

While I'm dissappointed in HP's withdrawal, I take comfort in the knowledge that my suspicions of HP's ability to raise outside capital proved true. This throws water on all those that said that HP didn't have the cash to buy ATA.

So now we know that if another situation arises that proves potentially beneficial to HP, they have the ability to act upon it.

The 747: The hands who designed it were guided by god.
 
Derik737
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 6:07 am

Qwerty and Jacobin777,

It is both the carriers and the aircraft that have to be certified for ETOPS.

For instance, the 737NG has an ETOPS selection when you configure the aircraft with Boeing (and it costs you some $$ of course). The selection adds an additional cargo fire extinguisher bottle and an Airplane Flight Manual entry.

I am not sure if ATA's 75's or 73's are ETOPS certified.

Regards,
Derik
 
cactushp
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 8:41 am

"I am not sure if ATA's 75's or 73's are ETOPS certified."
ATA's 757 are ETOPS equipted mainly used for routes to Hawaii


CactusHP
Sorry, I was on the landline
 
ARCJET
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 10:57 am

What will happen to ATA's military contract flights? The Friday Night departure to Keflavik from Baltimore and the countless flights from BWI to the middle east?
Charleston, SC
 
flyabunch
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RE: HP Pulls Out On ATA

Sat Dec 11, 2004 11:59 am

I think this whole statement is posturing. I stil think that HP is in the game. If they do not like what happens, they look great. If they like the way things are going, they jump back in at a lower price. Good business in action...watch and learn.

Mike
 
GroundStop
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RE: HP Pulls Out On ATA

Sun Dec 12, 2004 3:47 am

"they jump back in at a lower price"

The deadline to turn in a bid was Friday, December 10th....so there won't be any jumping back in.
 
Byrdluvs747
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RE: HP Pulls Out On ATA

Sun Dec 12, 2004 5:01 am

One thing I don't understand is why HP didn't bid on the gates and 757's like ATA is doing? Let the asian carriers or whoever buy the 737's.


The deadline to turn in a bid was Friday, December 10th....so there won't be any jumping back in.


What if the judge deems the current offers as unacceptable? Can he extend bidding for more counter-offers?
The 747: The hands who designed it were guided by god.