ATA ceases all MDW service

[ATA For Now!]

What a shame. It was really a great place to work for a long time.

Good Luck all....

To: All Employees
Date: March 6, 2008
As you know, we have continually looked for cost savings and synergies throughout our
company to return to profitability, but we now must take a larger step.
We are announcing today that we are ceasing our scheduled service operation between
Midway and Dallas/Ft. Worth, Oakland, Cancun and Guadalajara. This will occur in two
stages, with the domestic flights ending on April 14 and the international flights ceasing
on June 7. These dates keep us in compliance with government regulations, which
require longer notification times for international service.
This was a difficult decision for us and one we have been wrestling with for some time,
but in the face of the unprecedented rise in fuel costs for which fares have not kept pace,
we simply could not operate this service at a profit.
I want you to know that your outstanding performance in maintaining our reliability and
customer loyalty has been a significant reason we have been able to stay in the fight this
long. I am proud of the professional effort everyone has put forth in the face of much
uncertainty and change over the past few years. Each affected employee will receive
details about what this transition will mean individually, and you’re welcome to contact
your managers if you have additional questions. In addition, we will compile the most
asked questions and be sure to get that information back out to you.
I share your disappointment, which is understandable and expected. But I ask everyone to
continue to perform for our customers in these markets, safely and to the best of our
ability through the coming months until we complete each and every flight. We have a
great team of managers and employees who have kept serving our customers well despite
the changes we have been through, and your professional efforts are needed and very
much appreciated.
What do we do next? We will place the two aircraft that are used for this scheduled
service flying into charter service, either commercially or for the military. We’re
optimistic that opportunities are out there and we’re doing everything we can to capitalize
on them, which will keep our aircraft flying and improve our profit outlook.
Thanks for everything you do. I’ll be back in touch soon.

 

[wing17]

Hey-

How did you get those airbus ratings so quick?
By the way do ya know a good place to grab some wine in Indy?

 

[On Your Six]

Hey-

How did you get those airbus ratings so quick?
By the way do ya know a good place to grab some wine in Indy?

Virgin America?

 

[vtwo]

Bla BLa Bla it is not the fuel prices, it's inept managment

[email protected]

For Immediate Release

ATA AIRLINES TO DISCONTINUE SCHEDULED SERVICE
AT CHICAGO’S MIDWAY AIRPORT

Will Redeploy Aircraft into Charter Market

INDIANAPOLIS (March 6, 2008) – ATA Airlines today announced that it will discontinue domestic scheduled service at Midway Airport effective April 14, 2008, and international service will cease effective June 7, 2008. The affected ATA domestic markets include Oakland, Calif., and Dallas/Ft. Worth, and the international routes include Cancun and Guadalajara, Mexico. Flights between the West Coast and Hawaii destinations are not affected.
“ATA has operated a Midway hub since 1992, and we have greatly appreciated the support we received from the City of Chicago and our many customers during those years,” said Rob Binns, Chief Commercial and Planning Officer. “This was a difficult decision, but the high cost of fuel has made it economically unfeasible to continue our low-fare service at Midway. We will redeploy our ATA aircraft in profitable charter service."
All customers currently booked on discontinued ATA flights will receive refunds for the unused portions of their reservations. For questions, contact ATA at 800-435-9282 or visit the website, www.ata.com.
In its 35th year of operations, ATA is a subsidiary of Global Aero Logistics Inc.

The public and employees are being tricked into thinking it is the fault of fuel prices. In reality all airlines buy gas, so it is up to management to manage that expense, and manage revenue as well.
What they won't tell you is that others can manage better. so we suck and you will lose your job. SORRY. "we have greatly appreciated the support we received from the City of Chicago and our many customers during those years" we sure appreciate your hard work. BLA BLA BLA>

 

[Whataburger]

Hopefully no more furloughs. Will the planes be used in overseas charters, Hawaii, etc? Best of luck to yall.

 

[atafan]

ATAFAN - Not anymore.

It was a great place to work with some great people but managed by circus clowns.

I apologize to circus clowns.

What a joke!

 

[ATA For Now!]

Hey-

How did you get those airbus ratings so quick?
By the way do ya know a good place to grab some wine in Indy?

UA PIC types all FO's.

And, I sure do!!

RV

 

[fam62c]

That's a bummer, good luck to the MDW folks. Do we ever get any GOOD news in this industry?

 

[Lear70]

That really sucks. Makes me wonder, though...

In an asset sale, if you downsize your airline to near-nothing, furlough most of your employees, then a few months later sell those assets to someone, would that not get around the clause that requires them to transfer the pilots with a "major asset sale"?

Methinks there's more to this than meets the eye... Maybe I'm just paranoid.

 

[Palomino]

To: All Employees
Date: March 6, 2008
As you know, we have continually looked for cost savings and synergies throughout our
company to return to profitability, but we now must take a larger step.

my 1st rule as an airline employee: never trust anyone who uses the word 'synergy' or any derviative of the word.

 

[Capt.LongThrust]

That really sucks. Makes me wonder, though...

In an asset sale, if you downsize your airline to near-nothing, furlough most of your employees, then a few months later sell those assets to someone, would that not get around the clause that requires them to transfer the pilots with a "major asset sale"?

Methinks there's more to this than meets the eye... Maybe I'm just paranoid.

Ala CO. Meaning no.

 

[Freight Dog]

Is anybody getting furloughed as a result? I wouldn't think so considering that the aircraft are being transferred to charter side of the house.

Best of luck to you guys and gals!

 

[HighSpeedClimb]

ATA might end isle service

Fuel costs threaten airline's flights to Hawaii


ATA Airlines, which has operated scheduled flights to Hawaii since the mid-1990s and charter flights before that, is considering leaving Hawaii due to soaring fuel costs.

The Indianapolis-based carrier said yesterday it was discontinuing scheduled service at Chicago's Midway Airport on April 14 and would cease international service effective June 7.

ATA said the Chicago shutdown would not affect remaining service between the West Coast and Hawaii, but an internal memo and sources familiar with the situation indicate that the airline is re-examining its future in Hawaii.

ATA has between 11 and 15 daily departures to Hawaii from Phoenix, Las Vegas, Los Angeles and Oakland, Calif.
The airline emerged from bankruptcy reorganization in February 2006.

ATA Airlines is considering pulling out of the Hawaii market as it grapples with soaring fuel costs, according to an internal memo and sources familiar with the situation.

The Indianapolis-based carrier, which emerged from bankruptcy reorganization in February 2006, announced yesterday it was discontinuing scheduled service at Chicago's Midway Airport on April 14 and would cease international service to that city June 7. Those moves would leave West Coast-Hawaii flights as ATA's only remaining scheduled service.

Although ATA said those West Coast-Hawaii flights would be unaffected by the Chicago pullout, a memo sent from ATA's unit of the Association of Flight Attendants to its members said the outlook for those routes is uncertain.

The memo said the board of directors of Global Aero Logistics Inc., parent of ATA, is looking at the following scenarios: "the sale of the Hawaii market, sale with possible subservice back to (ATA), liquidation, keeping the service with a prayer of lower fuel, or possibly a concept we haven't thought of yet."

The memo, sent yesterday following a Global board meeting on Wednesday, appears to go a step further than the Securities and Exchange Commission stock-offering prospectus that privately held Global Aero Logistics filed in January. That prospectus said that Global continues "to explore strategic opportunities for our scheduled service businesses, including network restructuring, international expansion, business combinations and partial or complete divestitures."

ATA spokesman Steve Forsyth said yesterday that he could not comment on rumors concerning the Hawaii market.

"We can say today that fuel costs are a continuing concern for the Hawaii service as they were at Midway, but at this time none of the West Coast service is being affected."

In yesterday's announcement, ATA said the affected domestic routes from Chicago include Oakland, Calif., and Dallas/Fort Worth, while the international routes include Cancun and Guadalajara, Mexico.

Rob Binns, chief commercial and planning officer for ATA, said the high cost of fuel made it "economically unfeasible" to continue with the airline's low-fare service at Midway and that the ATA aircraft would be deployed in the company's profitable charter service.

If ATA leaves Hawaii, that would be good news for Hawaiian Airlines and Aloha Airlines, which have complained about excess capacity in the market. ATA has between 11 and 15 daily departures to Hawaii from Phoenix, Oakland, Los Angeles and Las Vegas. ATA, which had a 4.4 percent share of the Honolulu market and a 6.6 percent share of the Maui market last year, also flies to Kauai and the Big Island.

Hawaiian competes with ATA on service to Phoenix, Los Angeles and Las Vegas, while Aloha competes with ATA on service to Oakland and Las Vegas.

ATA's possible departure could be particularly beneficial to financially ailing Aloha, which flies 737-700s and could expand or transition its fleet with ATA's 12 Boeing 737-800s. However, the airline could be forced to incorporate ATA's pilots in that scenario, which could create problems involving seniority.

Aloha had "very early and exploratory talks" with ATA, but nothing came out of them, according to someone familiar with the situation.

Both Hawaiian and Aloha spokesmen declined to comment.

Rhonda Hogard, president of ATA's flight attendants union, said the airline's Hawaii bookings are solid for the summer and that the union could hear more about ATA's Hawaii future by the end of this month.
"Hawaii has been our mainstay. We built it from the ground up, and we certainly don't want to see it go," she said.

 

[Freight Dog]

ATA's possible departure could be particularly beneficial to financially ailing Aloha, which flies 737-700s and could expand or transition its fleet with ATA's 12 Boeing 737-800s. However, the airline could be forced to incorporate ATA's pilots in that scenario, which could create problems involving seniority.

Aloha had "very early and exploratory talks" with ATA, but nothing came out of them, according to someone familiar with the situation.

I don't know about you HighSpeed, but I'm laughing my ass off here over this. Doesn't this sound typical Aloha?

 

[HighSpeedClimb]

Aloha had "very early and exploratory talks" with ATA, but nothing came out of them.

Usual SOP from AQ!!! See ya Tues..:uzi: