ATA Airlines files for bankruptcy protection
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ATA Airlines files for bankruptcy protection
Another installment in a continuing series...
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ATA Airlines files for bankruptcy protection
The Associated Press
Published October 26, 2004, 4:25 PM CDT
INDIANAPOLIS -- ATA Airlines Inc., the nation's 10th-largest airline, filed for bankruptcy protection Tuesday, one day after naming an executive to oversee the restructuring of the discount carrier's mounting debt.
The filing under Chapter 11 of the federal bankruptcy code came as the Indianapolis-based airline faces soaring fuel costs, an industry fare war and sharply lower demand for military charter flights.
ATA also is saddled with millions of dollars in debt from new aircraft purchases.
In recent weeks the company has announced plans to cut more than 300 jobs, including 150 flight attendants. So far this year, ATA pilots and flight attendants have accepted nearly $70 million in wage concessions.
In an SEC filing last week, ATA said its finances have worsened since Aug. 16, when it reported that it had lost $90.7 million during the first half of 2004.
____________________________________
ATA Airlines files for bankruptcy protection
The Associated Press
Published October 26, 2004, 4:25 PM CDT
INDIANAPOLIS -- ATA Airlines Inc., the nation's 10th-largest airline, filed for bankruptcy protection Tuesday, one day after naming an executive to oversee the restructuring of the discount carrier's mounting debt.
The filing under Chapter 11 of the federal bankruptcy code came as the Indianapolis-based airline faces soaring fuel costs, an industry fare war and sharply lower demand for military charter flights.
ATA also is saddled with millions of dollars in debt from new aircraft purchases.
In recent weeks the company has announced plans to cut more than 300 jobs, including 150 flight attendants. So far this year, ATA pilots and flight attendants have accepted nearly $70 million in wage concessions.
In an SEC filing last week, ATA said its finances have worsened since Aug. 16, when it reported that it had lost $90.7 million during the first half of 2004.
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More than a rumor - read here
Maybe I'm wrong, but I think it's AirTran's lucky day. This could be the deal that propels them up the next level...
Or maybe it means (as in the case of AirTran, NW, etc.) that you should fly your DC-9s (and follow ons like MD-95/B717) as long as possible?
Orlando, Fla.-based AirTran Holdings Inc. will assume ATA's flight operations, gate leases and routes at Chicago Midway Airport and arrival and departure slots at New York's LaGuardia Airport and Ronald Reagan Washington National Airport.
It all goes downhill when you park your 1011\'s...
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ElectroVlasic says:
>>>> Or maybe it means (as in the case of AirTran, NW, etc.) that you should fly your DC-9s (and follow ons like MD-95/B717) as long as possible? <<<<
RD says:
If that's the case, then how do you explain TWA? Or the original Midway Airlines, or Sunworld? Or the faltering Delta?
I agree that this is definitely a good day for AirTran. This is the push they need. One should hope, though, that they don't overdo it, a la the aforementioned Midway.
RD
>>>> Or maybe it means (as in the case of AirTran, NW, etc.) that you should fly your DC-9s (and follow ons like MD-95/B717) as long as possible? <<<<
RD says:
If that's the case, then how do you explain TWA? Or the original Midway Airlines, or Sunworld? Or the faltering Delta?
I agree that this is definitely a good day for AirTran. This is the push they need. One should hope, though, that they don't overdo it, a la the aforementioned Midway.
RD
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I fly AirTran frequently, I have flown ATA only twice. AirTran is reasonably comfortable, while ATA was absolutely cramped- I literally had my knew pushed up by the life raft container on an "exit row" seat for two hours. While the people are pleasant, I wasn't impressed.
Is AirTran buying any of the aircraft and employees? I don't understand ATA's selling of Midway, LGA, etc. It's sounds very much like they have thier backs to the wall- sort of like PanAm and TWA selling their best routes to keep everything going and then falling into a slow decline.
Hope it works out as well as it can for all concrened at ATA, or Delta, USAirways, United, etc.
Is AirTran buying any of the aircraft and employees? I don't understand ATA's selling of Midway, LGA, etc. It's sounds very much like they have thier backs to the wall- sort of like PanAm and TWA selling their best routes to keep everything going and then falling into a slow decline.
Hope it works out as well as it can for all concrened at ATA, or Delta, USAirways, United, etc.
