Airtran Airways Mdw Expansion Jan '05

[mohrmjr]

Press Release Issued November 29, 2004 3:00:00 PM ET

AirTran Airways Announces Seven New Daily Nonstop Flights from
Chicago-Midway
- Flights to Five New Destinations to Begin January 11, 2005 -

ORLANDO, Fla., Nov. 29 /PRNewswire-FirstCall/ -- AirTran Airways, a
subsidiary of AirTran Holdings, Inc. (NYSE: AAI), announced today that
the
airline will add seven new daily nonstop flights from Chicago's Midway
Airport
to Fort Lauderdale, Fort Myers, Orlando, Sarasota/Bradenton and Tampa.
The new
service is effective January 11, 2005.
"We see a great opportunity to bring our low-cost service to these
new
routes and help Chicago-area travelers find affordable air fares to
their
favorite vacation and business destinations," said Bob Fornaro, AirTran
Airways' president and chief operating officer. "This new service
demonstrates AirTran Airways' commitment to the Chicago market, and our
service to the new and convenient Chicago Midway Airport will make
getting to
and from Chicago even easier. While this is our initial expansion in
Chicago,
we hope it represents the beginning of our partnership with ATA
Airlines," he
added. Although the larger deal previously announced with ATA Airlines
is
subject to approval by the City of Chicago among others, these new
flights are
independent of the ATA transaction and will operate as scheduled.
AirTran Airways currently operates eight daily roundtrip flights to
the
airline's hub in Atlanta. This new service includes one flight to Fort
Lauderdale, two flights to Fort Myers, two flights to Orlando, one
flight to
Sarasota/Bradenton and one flight to Tampa.
Effective January 11, 2005, AirTran Airways will operate the
following
flight schedule from Chicago-Midway:

Nonstop Service from Chicago-Midway

Destination Departs Arrives
Frequency
Atlanta 5:35 a.m. 8:25 a.m. Daily
Atlanta 9:25 a.m. 12:14 p.m. Daily
Atlanta 10:41 a.m. 1:31 p.m. Daily
Atlanta 2:00 p.m. 4:50 p.m. Daily
Atlanta 3:20 p.m. 6:15 p.m. Daily
Atlanta 4:15 p.m. 7:06 p.m. Daily
Atlanta 5:29 p.m. 8:19 p.m. Daily
Atlanta 7:20 p.m. 10:10 p.m. Daily
Fort Lauderdale 7:45 a.m. 11:45 a.m. Daily *
Fort Myers 10:25 a.m. 2:00 p.m. Daily *
Fort Myers 5:05 p.m. 8:40 p.m. Daily *
Orlando 7:00 a.m. 10:35 a.m. Daily *
Orlando 6:45 p.m. 10:20 p.m. Daily *
Sarasota/Bradenton 6:12 p.m. 9:47 p.m. Daily *
Tampa 12:03 p.m. 3:28 p.m. Daily *

* Denotes new service effective January 11, 2005.

New Nonstop Service to Chicago-Midway

Origin Departs Arrives
Frequency
Atlanta 7:55 a.m. 8:48 a.m. Daily
Atlanta 9:10 a.m. 10:06 a.m. Daily
Atlanta 12:30 p.m. 1:23 p.m. Daily
Atlanta 2:45 p.m. 3:38 p.m. Daily
Atlanta 3:55 p.m. 4:52 p.m. Daily
Atlanta 5:35 p.m. 6:38 p.m. Daily
Atlanta 8:03 p.m. 8:53 p.m. Daily
Atlanta 10:55 p.m. 11:46 p.m. Daily
Fort Lauderdale 12:40 p.m. 2:40 p.m. Daily *
Fort Myers 2:40 p.m. 4:25 p.m. Daily *
Fort Myers 7:15 p.m. 9:00 p.m. Daily *
Orlando 8:00 a.m. 9:45 a.m. Daily *
Orlando 4:20 p.m. 6:05 p.m. Daily *
Sarasota/Bradenton 9:25 a.m. 11:05 a.m. Daily *
Tampa 4:05 p.m. 5:35 p.m. Daily *

* Denotes new service effective January 11, 2005.

AirTran Airways is one of America's largest low-fare airlines -
with 6,000
friendly, professional Crew Members and operating over 500 flights a
day to
more than 40 destinations. The airline's hub is at Hartsfield-Jackson
Atlanta
International Airport, the world's busiest airport by passenger volume,
where
it is the second largest carrier. AirTran Airways, a subsidiary of
AirTran
Holdings (NYSE: AAI), is the world's largest operator of the Boeing 717
and
has America's youngest all-Boeing fleet. The airline recently added the
Boeing
737-700 aircraft to its fleet and will begin outfitting its planes with
XM
Satellite Radio this fall. For reservations or more information, visit
http://www.airtran.com (America Online Keyword: AirTran).

Media Contact: Tad Hutcheson
[email protected]
678.254.7442

 

[HalinTexas]

Well, they're pretty confident this thing will go through as planned.

 

[FarginDooshbahg]

Well, they're pretty confident this thing will go through as planned.

My 6 yr old read the article. He pointed out this part:

"Although the larger deal previously announced with ATA Airlines
is subject to approval by the City of Chicago among others, these new
flights are independent of the ATA transaction and will operate as scheduled."

He's only in the first grade. Maybe additional schooling could help with your comprehension.

 

[FLB717]

Halin,
is correct that Mgt must feel something will happen, because we have only one gate and can't operate that many flight with one gate no matter how well planned.

 

[lowecur]

Halin,
is correct that Mgt must feel something will happen, because we have only one gate and can't operate that many flight with one gate no matter how well planned.

As far as I can see you share one of the 5 General Usage gates. Unless those gates see 7 to 8 flts apiece, there should be plenty of room for that many new flts. I wonder if ATA used some of the GU gates in the winter?

 

[Cactus73]

Well I guess it's all over then.

I assume that AWA and SWA are going to go to the BK court this week and tell them that in light of this news, they will not be putting in any offers.

Also, we can finally stop discussing "the new ATA" on this forum.


Oh, I'm sure the ATA MEC is really happy too. Now they can tell the 700 or so pilots that are going to lose their jobs to start packing early.



Yes, this post is sarcasm.

As I said before, Air Tran and ATA management are trying to get everyone to think the deal is done in an attempt to pressure the court and the city.

It ain't over until December 16 - period.

 

[mohrmjr]

Whatever happens in Dec. these additional flights have nothing to do with ATA, it is totally separate of the ATA proposal.

AirTran is not the "bad guy" in any of these scenarios. ATA is Chp 11, another company is trying to pick up the routes that ATA is going to cut back anyway. SWA or any other airline can hire anyone they want. It is not upto AirTran to hire ATA pilots. This is not a merger of any sorts. One carrier is simply attempting to get unused gates (future) and slots that have the potential to be discontinued. Most airlines will be glad to hire furloughed pilots, but AirTran is not the only one that can do it.

If United were to close ORD and Southwest went in to pick up the slack would they have to hire everyone? Lets be practical here.

Remebmer ATA went Chp 11, and this was not AirTran's doing... so these comments on this site about AirTran needing to do this or that are a little far out.

 

[Cactus73]

Whatever happens in Dec. these additional flights have nothing to do with ATA, it is totally separate of the ATA proposal.

Not likely. They need more than the one gate they currently have.

I would seriously doubt that Air Tran would want a three way permanent fare war at MDW if a third party gets the nod on ATA.

They ordered a lot of airplanes and they need somewhere to put them, but I doubt they want to commit revenue suicide with them. They want to place them where they can make money. There aren't too many cities right now that can absorb the capacity that they have coming.

 

[atafan]

The AirTran deal will not fly as proposed.

There will be a combined SWA - AWA split of the assets, with the majority of ATA merged with AWA. There could possibly be an outside investment firm re-organizing ATA, not likely just possible.

My money is on the table.

 

[Ty Webb]

The AirTran deal will not fly as proposed.

The AirTran offer will probably not change. We are told it is an all-or-nothing proposal.

Personally, it will be fine with me if we don't do the deal. At some point, the cost outweighs the benefits.

Let SWA mess around trying to dominate PHL and MDW; we'll quietly keep adding 3 or 4 cities a year, growing at 20-25% and it will be just fine with me.

 

[75M]

atafan,

I respect your opinion and your certainty that you will get a better deal than what Airtran is offering. While a SWA-AWA split might benefit the ATA emplyees in the short term please keep two things in mind.

1) Anybody that buys (even part of) ATA is going to restucture the airline DRASTICALLY. that means there will be lots of excess people to get rid of.

2) Hoping for the best is nice, but please plan for the worst. If you are senior at ATA and fly with junior FOs, encourage them to get their logbook and resume updated and start applying NOW. If your junior, please, start now. When we (former TWA guys) were on the chopping block with AMR, a surprising number of guys thought they "were gonna be able to hang on by a few numbers". I even had good friends say that they hated to apply to another airline too soon because they wanted to see how it was gonna play out. The reality is that many...many ATA employees will be on the street and it takes time to find a new job. Delaying this realiziation for even a few weeks could do years of damage to the careers of the ATA employees who will need to find a new job. As an example, I started applying to everybody I could think of 8 months before my furlough and I was still unemployed for 4 months (and I consider myself lucky).

I wish the bright light at the end of the tunnell was something other than a locomotive, but please don't sit around winding the clock while you're hoping for a better deal.

 

[METARMan]

I also think that the AirTran deal will go through.

I'm under the impression that DIP financing and pre-packaged bankruptcy agreeements are almost never amended.

The fact that both ATA and AirTran management has already agreed to such a deal makes it almost a slam dunk, in my opinion.

Good luck to all the ATA guys out there. You are all at the top of your game, it is unfortunate you've had to deal with such disgraceful management. The only LCC to fail and they blame it on external factors. Is there anyway Mikelsons can be deported back to where he came from?

The last thing America needs is another set of disgraceful, lying and incompetent airline management. Maybe he can destroy an airline and thousands of employees in his native land.

 

[75M]

You go METEARman!

I just want to re-emphasize that I wish there was a better deal for the ATA folks because you deserve it. But, as a good friend of mine once said regarding airline applications, "It's better to have them out and not need them, than to need them out and not have them.

 

[CaptSeth]

I also think that the AirTran deal will go through.

I'm under the impression that DIP financing and pre-packaged bankruptcy agreeements are almost never amended.

The fact that both ATA and AirTran management has already agreed to such a deal makes it almost a slam dunk, in my opinion.

WRONG!

No DIP financing was in place at the time of the filing, and there was no pre-packaged bankruptcy. The deal with Airtran wasn't formalized until last week, and there is question as to whether or not the creditors will look kindly on it if there is a more, um, coherent offer tabled that satisfies them more completely.

That's why they're scrambling around trying to add flights, to give this effort some sort of de-facto legitimacy "oh, yeah, why of course we wanted to be in MDW all along, here are some flights to Fla. in the winter to prove it!"

Nope, sorry, the final dispensation of this case will not be known until Dec. 16. Not you nor I have that information.

 

[habubuaza]

UBS downgrades AirTran, lifts others

By Matt Andrejczak, CBS.MarketWatch.com
Last Update: 1:17 PM ET Nov. 24, 2004
E-mail it | Print | Discuss | Alert | Reprint | RSS

SAN FRANCISCO (CBS.MW) -- UBS cut AirTran Holdings on Wednesday to "reduce," saying it is skeptical of the airline's planned expansion into the Midwest.

The downgrade came as the firm upgraded Delta Air Lines (DAL: news, chart, profile) to "buy" from "reduce," and hiked America West Airlines (AWA: news, chart, profile) and Southwest Airlines (LUV: news, chart, profile) to "buy" from "neutral."

UBS also cut Alaska Air Group (ALK: news, chart, profile) to "reduce" from "neutral."

Airline analyst Robert Ashcroft questioned if AirTran's plan to expand into Chicago will play out as proposed and whether it is prudent.

AirTran (AAI: news, chart, profile) is waiting for regulatory approvals to buy 14 gates at Chicago's Midway Airport from bankrupt ATA Airlines for $90 million. Yet a bankruptcy judge has opened the door for other airlines to make competing bids by Dec. 10.

Low-cost rivals Southwest Airlines and America West have both expressed interest.

Southwest, which has unveiled plans to boost daily flights at Midway since the deal was announced Oct. 26, seeks seven of the gates at the airport. It now operates 19 gates.

Ashcroft said AirTran "underestimates the pain" Southwest will subject it to should its expansion pan out. He argues AirTran should give Southwest what it seeks and focus on operating an eight- to 10-gate operation at Midway.

"Essentially, we think the market is overestimating both chances of AirTran landing this deal and the benefits of doing so," he added.

In an interview Wednesday, AirTran Chief Operating Officer Bob Fornaro did not comment specifically on the downgrade, but said AirTran is "in the best position" to win the gates. He thinks the Justice Department would likely block any potential Southwest bid on antitrust grounds.

Shares of AirTran shed 5 cents to $12.24.

Meantime, Ashcroft predicts Southwest should pounce on its competition as the U.S. government ends the financial aid that has keep most airlines aloft following the Sept. 11, 2001 terrorist attacks.

The analyst projects Southwest's growth rate at 12.5 percent through 2007, above its usual 10 percent rate.

"Government cash/loans served to keep weak carriers in the game, including several which most directly faced Southwest," Ashcroft said. "This has suppressed Southwest's growth and profitability."

Shares of Southwest rose 38 cents to $15.97.

The analyst said Delta has bought itself more time to restructure its finances outside of the bankruptcy court, after American Express and GE Capital agreed to provide cash and pilots agreed to take a $1 billion pay and benefits cut.

Ashcroft set a new 12-month price target of $11.75, but Delta is not out of the woods yet.

"As hard as Delta's management worked this autumn to stave off Chapter 11, it must work harder still this winter/spring to successfully restructure the company in the breathing space it has won," he wrote.

Delta advanced 45 cents to $7.

Stock ratings for Alaska Air and America West were both changed on price. UBS set a new 12-month target for Alaska Air at $23 and America West at $9.50.

Shares of Alaska Air fell 28 cents to $29.15; America West rose 40 cents to $5.89

 

[Ty Webb]

Upgrade and downgrades from firms such as this don't mean much to me, and obviously the market didn't respond to it, either. There are a few good airline analysts, and then there is everyone else . . . .

As for the announcement of the 7 additional non-stops to FL, well, if we walk away with that and the $3 million we get if the deal doesn;t go through, then it was a pretty good month.

 

[mad691]

AirTran expanding service at Midway
7 daily non-stops to Florida added

By Mark Skertic
Tribune staff reporter
Published November 30, 2004

AirTran Airways is boosting its presence at Midway Airport, even if the airline doesn't take over the operations of ATA Airlines.

The Orlando-based airline is adding seven daily non-stop flights to Florida from the South Side airport starting Jan. 11. AirTran already offers eight daily flights from Midway to Atlanta.

"This shows AirTran Airways is committed to Chicago," said Robert Fornaro, the airline's president and chief operating officer. "We're going to expand at the airport because we see some opportunities for us."

AirTran has made an $89.5 million offer for much of ATA Airlines, the Indianapolis-based carrier that filed for Chapter 11 protection last month. The deal would allow AirTran to take over ATA's 14 gates at Midway, as well as landing rights at New York's LaGuardia and Washington, D.C.'s Ronald Reagan National Airports.

Competing bids for some or all of ATA are expected from other low-cost carriers, particularly Southwest Airlines and America West Airlines. Those bids are due to the bankruptcy court in Indianapolis by Dec. 10. The court will decide how ATA's assets are divided.

Southwest's 19 gates at Midway are the most any airline controls. Like AirTran, Dallas-based Southwest has announced plans to increase service from Chicago in early 2005. Southwest currently has 145 daily non-stop departures from Chicago and is set to add 24.

Monday's announcement of an expanded schedule to Florida is separate from AirTran's plans for ATA's assets, Fornaro said.

"We've made a decision that we're going to expand in Chicago one way or another, and we're just anxious to start the process," he said.

AirTran is adding a pair of daily flights to Ft. Myers and Orlando, along with a flight each day to Ft. Lauderdale, Sarasota and Tampa.

"The flights that we've added will dovetail very closely with the plans we want to carry out with ATA," Fornaro said.

AirTran will expand into a second Midway gate to offer the new service. The airline will serve the new routes with Boeing 717s and 737-700s.

The new routes will require the hiring of about 30 workers at Midway, "most of them customer service agents and those in the ramp area," Fornaro said.



Copyright © 2004, Chicago Tribune

 

[BHS]

History is Repeating itself

Sounds like when the ole Midway Airlines went down and Southwest offered and was granted extra gates at Mdw. Deepest Pockets wins.

 

[Citrus Jockey]

UBS downgrades AirTran, lifts others

By Matt Andrejczak, CBS.MarketWatch.com
Last Update: 1:17 PM ET Nov. 24, 2004
E-mail it | Print | Discuss | Alert | Reprint | RSS

SAN FRANCISCO (CBS.MW) -- UBS cut AirTran Holdings on Wednesday to "reduce," saying it is skeptical of the airline's planned expansion into the Midwest.

The downgrade came as the firm upgraded Delta Air Lines (DAL: news, chart, profile) to "buy" from "reduce," and hiked America West Airlines (AWA: news, chart, profile) and Southwest Airlines (LUV: news, chart, profile) to "buy" from "neutral."

UBS also cut Alaska Air Group (ALK: news, chart, profile) to "reduce" from "neutral."

Airline analyst Robert Ashcroft questioned if AirTran's plan to expand into Chicago will play out as proposed and whether it is prudent.

AirTran (AAI: news, chart, profile) is waiting for regulatory approvals to buy 14 gates at Chicago's Midway Airport from bankrupt ATA Airlines for $90 million. Yet a bankruptcy judge has opened the door for other airlines to make competing bids by Dec. 10.

Low-cost rivals Southwest Airlines and America West have both expressed interest.

Southwest, which has unveiled plans to boost daily flights at Midway since the deal was announced Oct. 26, seeks seven of the gates at the airport. It now operates 19 gates.

Ashcroft said AirTran "underestimates the pain" Southwest will subject it to should its expansion pan out. He argues AirTran should give Southwest what it seeks and focus on operating an eight- to 10-gate operation at Midway.

"Essentially, we think the market is overestimating both chances of AirTran landing this deal and the benefits of doing so," he added.

In an interview Wednesday, AirTran Chief Operating Officer Bob Fornaro did not comment specifically on the downgrade, but said AirTran is "in the best position" to win the gates. He thinks the Justice Department would likely block any potential Southwest bid on antitrust grounds.

Shares of AirTran shed 5 cents to $12.24.

Meantime, Ashcroft predicts Southwest should pounce on its competition as the U.S. government ends the financial aid that has keep most airlines aloft following the Sept. 11, 2001 terrorist attacks.

The analyst projects Southwest's growth rate at 12.5 percent through 2007, above its usual 10 percent rate.

"Government cash/loans served to keep weak carriers in the game, including several which most directly faced Southwest," Ashcroft said. "This has suppressed Southwest's growth and profitability."

Shares of Southwest rose 38 cents to $15.97.

The analyst said Delta has bought itself more time to restructure its finances outside of the bankruptcy court, after American Express and GE Capital agreed to provide cash and pilots agreed to take a $1 billion pay and benefits cut.

Ashcroft set a new 12-month price target of $11.75, but Delta is not out of the woods yet.

"As hard as Delta's management worked this autumn to stave off Chapter 11, it must work harder still this winter/spring to successfully restructure the company in the breathing space it has won," he wrote.

Delta advanced 45 cents to $7.

Stock ratings for Alaska Air and America West were both changed on price. UBS set a new 12-month target for Alaska Air at $23 and America West at $9.50.

Shares of Alaska Air fell 28 cents to $29.15; America West rose 40 cents to $5.89

Yeah as Ty said most analysts, including Aschcroft from the above article, aren't very good.

Robert Ashcroft's track record is not too impressive to date. His last great prediction on Oct.19, 2004 was a bust:

"UBS analyst Robert Ashcroft predicted Tuesday that Delta's cash, in the face of relentlessly low fares and high fuel prices, could drop to $1.1 billion by year's end.

He said that would be "uncomfortably low" for Delta to keep flying through the traditionally slow winter season without bankruptcy-court protection.

"We believe Delta is within a month or so of filing Chapter 11," Ashcroft said in his report."

 

[FLB717]

Lowecur,
You have no idea how my airline is run, how we use gates, what gates we can and can not use, so bugger your uninformed over analized opinon, sir.