AirTran to take ATA Employees with Deal

[SWA GUY]

Ummm...not sure I agree with you on that Seth.

 

[Ty Webb]

It remains to be seen if Airtran will really take all ATA employees at MDW. In my experience with ATA employees . . . the pilots are super, the flight attendants average with the atitude of "the passengers are the enemy", and the ground personnel are horrible.

Sounds like a match made in heaven . . . that's how I'd describe our people, too.

 

[ultrarunner]

Seth would be primarily correct....the decisions in CH. 11 are for the benefit of creditors and shareholders. Employess are dead-last.

AirTran will likely request and be granted relief from any contractual obligations. AirTran is in the drivers seat..they have the cash.

 

[ultrarunner]

But I still stand by my earlier post, that AirTran should wait for a Ch. 7 filing. Then they can just cherry-pick. And before anyone flames...this is business folks. Nothing personal.

 

[75M]

Ultra,

Although the price of any given asset would be cheaper IF ATA goes CH7 (notice the big if the competition for those assetts would increase greatly. FL put themselves in the driver's seat by making this offer which will be presented to the Judge. They've ensured themselves at least a chance to buy all that they need. On the other hand, if they were to wait for CH7 they will have to compete with LOTS of other airlines all wanting to pick up a gate or two or three.

 

[airlinepilot]

BK brings on special rules....

The judge has the power.....and I forget the BK title...to do away with contracts, etc .......I don't think he would make any company buying assets to take the ATA employees with them......he will look after the creditors....FIRST.... not the employees. Let's face it....if GE finance or Boeing were to take the aircraft bacK and enter into an agreement with us....the pilots would not come along......Kill the lawyers but it is true....Don't flame me guys and gals...ATA has some great people and I wish each and everyone of them the best.....but what I say is true.

 

[CaptSeth]

...not to mention the fact that the airline is worth much more as a whole, particularly as an operating entity. Good routes, frequent fliers, load factors, no start-up costs, trained employees, great performance - it all goes down the tubes in a liquidation, and you have to start from scratch.

Renogatiate the debt, and you have a winner. Any other takers? We shall soon see.........

 

[SWA/FO]

Virgin?

 

[ultrarunner]

I agree...it's a chance it'll let others in. But the playing field is so small (airlines with cash), that it may be a good risk.

 

[mt2]

In a nutshell, if SWA (or AAI, or AWA, whoever) were to take the 737-800s, it would trigger the fragmentation clause in our contract that states the pilots must go with the airplanes.
Also, it is technically only 30% of the fleet, or enough of the fleet that those planes accounted for 30% of the revenue in the past 12 months, or 30% of the block hours flow the past 12 months.

Pickle -- don't forget our frag clause also talks about Routes as well as aircraft. And we all know MDW makes up more than 30% of our revenues. Just another brick in the wall.