On Your Six
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- Mar 8, 2004
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Sorry to the ATA guys out there, but this never made much sense to me anyway... The last thing AWA would want to do is add more debt or assume more liabilities while fuel prices are so high, etc. Read below:
America West: Will Not Bid for ATA
Thursday December 9, 3:42 pm ET
CHICAGO (Reuters) - America West Holdings Corp. (NYSE:AWA - News) on Thursday said it would not bid for assets of bankrupt carrier ATA Airlines, saying the value does not justify the cost.
America West had previously announced it was considering buying ATA Holdings Corp. (Other OTC:ATHQ.PK - News), which is restructuring in bankruptcy.
"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," Chief Executive Doug Parker said in a statement.
"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," he said.
The deadline for bids for ATA assets is Friday. No. 6 U.S. carrier Southwest Airlines has expressed an interest in ATA assets.
ATA has been in bankruptcy since Oct. 26, hit by weak demand for its military charter flights, soaring fuel prices and weak fares resulting from stiff competition throughout the industry. ATA is the third U.S. airline to file for bankruptcy in the last two years.
UAL Corp (OTC BB:UALAQ.OB - News), parent of No. 2 U.S. carrier United Airlines and US Airways (OTC BB:UAIRQ.OB - News), the No. 7 U.S. carrier also are in bankruptcy.
Orlando-based AirTran Holdings Inc. (NYSE:AAI - News) last month signed a $90 million deal with ATA to operate the 14 gates at Chicago's Midway Airport and certain slots in New York and Washington.
If that deal is approved, AirTran would buy two of ATA's slots at Washington's Ronald Reagan National Airport and operate six more slots there, and 14 more at New York's LaGuardia Airport under a codeshare agreement with ATA.
America West: Will Not Bid for ATA
Thursday December 9, 3:42 pm ET
CHICAGO (Reuters) - America West Holdings Corp. (NYSE:AWA - News) on Thursday said it would not bid for assets of bankrupt carrier ATA Airlines, saying the value does not justify the cost.
America West had previously announced it was considering buying ATA Holdings Corp. (Other OTC:ATHQ.PK - News), which is restructuring in bankruptcy.
"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," Chief Executive Doug Parker said in a statement.
"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," he said.
The deadline for bids for ATA assets is Friday. No. 6 U.S. carrier Southwest Airlines has expressed an interest in ATA assets.
ATA has been in bankruptcy since Oct. 26, hit by weak demand for its military charter flights, soaring fuel prices and weak fares resulting from stiff competition throughout the industry. ATA is the third U.S. airline to file for bankruptcy in the last two years.
UAL Corp (OTC BB:UALAQ.OB - News), parent of No. 2 U.S. carrier United Airlines and US Airways (OTC BB:UAIRQ.OB - News), the No. 7 U.S. carrier also are in bankruptcy.
Orlando-based AirTran Holdings Inc. (NYSE:AAI - News) last month signed a $90 million deal with ATA to operate the 14 gates at Chicago's Midway Airport and certain slots in New York and Washington.
If that deal is approved, AirTran would buy two of ATA's slots at Washington's Ronald Reagan National Airport and operate six more slots there, and 14 more at New York's LaGuardia Airport under a codeshare agreement with ATA.
