ATA Airlines Announces Suspension of Service to/from Denver, Indianapolis and San Jua

[furloughfodder]

Looks like Southwest is continuing the destruction of ATA. Good luck to all the ATA guys:


-----------------------------------------------------


ATA Airlines Announces Suspension of Service to/from Denver, Indianapolis and San Juan, Puerto Rico
Tuesday November 1, 2:30 pm ET

Company cites intense competition and high fuel costs as primary factors behind the decision

INDIANAPOLIS, Nov. 1, 2005 (PRIMEZONE) -- As part of its continuing effort to create an efficient route structure and profitable business plan, ATA (ATA Airlines, Inc.) (Pink Sheets:ATAHQ) announces that it will be suspending service to/from the cities of Indianapolis, Denver and San Juan, Puerto Rico as of Jan. 10, 2006. Fluctuating demand, excess capacity and high fuel costs were central to all of today's announced suspensions,'' explained ATA Senior Vice President and Chief Commercial Officer Subodh Karnik. ``As a carrier, we must always balance our ability to generate sufficient revenue on each particular route against its operating costs. In Denver alone, carriers such as Ted, Frontier and now Southwest Airlines are intensifying competition. All airlines, particularly those in bankruptcy, must make these types of decisions to sustain profitability.''

ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick agreed. ``By making these adjustments, we improve our ability to achieve a profit in a shortened time frame. In turn, this strengthens our position in creating an appropriate structure for successful emergence in early 2006.''

The Company intends to maintain its headquarters in Indianapolis. ATA has signed an agreement with the Indianapolis Airport Authority to retain its lease of corporate office space on airport property.

Service Reduction Details

Currently, the airline provides four daily non-stop flights from Chicago-Midway to Denver and two daily non-stop flights from Phoenix to Denver. The carrier's service to San Juan, Puerto Rico includes one daily non-stop to/from Orlando and Chicago-Midway. From Indianapolis, ATA provides non-stop service to Ft. Myers, Fla., Orlando, Fla. and Las Vegas. It also provides direct service to Honolulu and Maui, Hawaii and San Juan, Puerto Rico. All flights will end as of midnight, E.S.T., on Jan. 9, 2006.

Customer Assistance

Customers holding tickets on the affected routes for travel beyond January 9, 2006 will be contacted and provided either full refunds for the unused value of their tickets or alternative travel. The Company has assembled a special team of dedicated reservations agents to provide assistance in these matters. Customers needing additional information following these initial contacts may call ATA's Reservations Department Special Services Desk at 1-866-282-7894. All changes will be reflected in the Company's available schedule within the next few days.

Employee Impact

ATA is already communicating directly with its employees regarding this announcement. ``Route decisions are especially difficult because of the impact the reductions have on our employees,'' said ATA Senior Vice President of Customers and Ground Operations Doug Yakola. ``Unfortunately, these changes are absolutely necessary for us given the current economic environment.'' At this time, an exact number of employee positions affected by this announcement is not yet determined. However, ATA is committed to assisting all affected employees in their transition.

ATA Airlines is now in its 32nd year of operation. The carrier offers affordable travel to destinations such as New York, Dallas/Ft. Worth, Hawaii, Florida and Mexico. Through direct and connecting codeshare flights, ATA now serves customers in more than 60 markets. For more information, visit ata.com.

 

[canyonblue]

Looks like Southwest is continuing the destruction of ATA.

Oh yea, Northwest in IND must of had no impact. Moron. No one is out of business yet. Now go kick a puppy jacka$$.uke:

 

[MDP727]

Yes, ATA will soon be contained to Hawaii and military flying. The only things SWA is not capable of yet.(INTL) Over 100 more furloughs to come after the first of the year. It's not code share it's code squasher.

 

[furloughfodder]

canyontool,

Wow. Name calling and emoticons. You are so cool.

Now go clean your seat back pockets tool boy.

 

[capt. megadeth]

``Route decisions are especially difficult because of the impact the reductions have on our employees,'' said ATA Senior Vice President of Customers and Ground Operations Doug Yako.

Yeah....uh huh.....like this schmuck gives a fuk. I am sure his golden parachute is half packed.

On a lighter note.....when will SWA start going to San Juan?

 

[psysix]

Do they have any west coast bases?

 

[Pickle]

Do they have any west coast bases?

"They" ATA or "they" SWA??

If you meant ATA, then the answer is yes. LAX and SFO. Also PHX. You can argue amongst yourselves as to whether or not PHX is "west coast".

I'm not feeling much "luv".

 

[IndyGTP]

Thanks again NWA, for screwing hundreds of Hoosier families and assisting in the destruction of ATA!!! :angryfire uke:


I bet you guys over at NWA are making fat cash on that $54 IND-LAS fare. This just makes me sick.

 

[Andy G]

Pretty arrogant,CanyonBlue.'No one is out of business yet'? I sure hope that can be said a few months from now.Being the big fish it's easy to make statements as you did while the ATA folks watch their carcass picked clean.Watch how long before SW is going to Hawaii.They've basically used ATA to dominate MDW and cherry-pick what they want out of their route system.They've made back their investment in ATA and then some.The smart folks never fell for the aw shucks,gool ol' boy bit.

 

[Metro752]

Didn't ATA just get a 76?

 

[Doug Parker]

.


It's a damn shame that the AWA / ATA deal didn't go through.

Then USAir could've gone on it's merry way to the graveyard, and AWA would still be a happy place.



.

 

[boeingdriver]

Doug Parker,

Thanks for the support!!! At least someone thinks ATA has something to offer. They pilots at ATA are some of the best I have ever had the pleasure of knowing.

Displaced, Replaced and now soon to be furloughed

Just my humble opinion but I think the AWA/ATA combination could have been a GREAT MIX. I was really looking forward to that.

 

[Pilotbob3]

how many ATA guys actually got hired at SWA?

 

[A350]

All the best to the folks at ATA.

As far as this announcement, SWA certainly is showing their hand. They used the "code share" to basically slowly take over what ATA had and are doing an end run around the antitrust regulations. It is akin to UAL telling AMR where and when they can fly out of ORD.

A350

 

[Dizel8]

They used the "code share" to basically slowly take over what ATA had and are doing an end run around the antitrust regulations.

More likley, they are doing an end run around Daley. I doubt the Fed would have had any problems with SWA taking over ATA.

 

[Wesb737fo]

Hey guys,

It is what it is. You can't blame SWA for being smart. Yes, it would have been nice to see an ATA/AWA merger but that didn't and isn't going to happen. If fuel prices hadn't gone from $ 1.10 to around $ 2.10 we wouldn't be having this discussion. Also, I would think again before blaming other airlines for the destruction of ATA. There are alot of reasons this is happening. If SWA had not stepped in, ATA would be gone already. If you care to do any research on SWA, you will note that every dirty trick in the book was used to try and put them out of business. They seem to have built a better mouse trap.

Just my two cents (IMHFO)

 

[Dizel8]

It is correct, that SWA has a great mousetrap, however, having said that, I am not sure, that they wants to be seen as engaging in dirty "politics".

Part of the reason SWA ended up with ATA was due to demands from Mayor Daley, those demands included no or minor joblosses at MDW. Now why he was making demands I do not know, I think he held a bit of power over the gates. Well, it seems that SWA is slowly dismantling ATA, which of course causes job losses.

IIRC, I think SWA is retrofitting the fleet with overwater equipment, I believe I read that here or somewehere else. If that is indeed the case, then I would not be surprised if SJU appears on the SWA routemap. I am sure someone at SWA would have an idea on this and whether or not they are pursuing ETOPS, in which case Hawaii disappears.

The only thing ATA has, that SWA cannot easily aquire is the heavy lift for the AMC charters or the slots/gates at LGA. The AMC charters are supposedly profitable and probably will be so, untill the conflict in Iraq is over, although, they could probably sell/ transfer/subcontract those to say World.

The slots at LGA might be a bigger problem, since they belong to ATA. If ATA ceases to be, the slots will revert, if I am not mistaken, to the Port Authority.
If that is indeed the case, then based upon the passenger loads on Song and jetBlue to FL, a market SWA serves, I am sure SWA would very much like to get into LGA. Further, I have little doubt, that the current route, MDW-LGA as served by ATA does reasonably well. Islip is a poor substitute for the business traveller.

At the same time, SWA is fighting the Wright Amendment. They may end up being successful, but at the same time, they are probably counting on a bit of "SWA:The peoples airline". Well, you might just inflame a few politicians to blustering rhetoric, if the true nature of SWA dealings with ATA sees the light of day.

Of a more personal nature, due to the fact that I have a couple of friends at ATA, I am saddened, that so very few ATA pilots have managed to get on with SWA. Considering that many fly the same airplanes and the same passengers, why SWA have allowed so few a job, for some reason, that just doesn't sit right with me.

Well, there is my three cents

 

[HalinTexas]

Less than 10 furloughed ATA pilots, of the 50-60 that were qualified, were hired as a result of the preferential interview that expired in April. About 5 have been hired outside of this opportunity. The hiring rate for those that have interviewed at SWA in the last year has been less than one in five.


ETOPS is NOT easily obtained, nor is international operations outside of tourist destinations if a given airline has never done so. North Atlantic Ops. is pretty damn hard to get as well.


The only thing that is keeping ATA's doors open is somewhere, someone sees an opportunity. We do not service enough cities domestically to stay in business. It appears from our BK filings this week that cash will actually be increasing over the next month. BK filings also show that a B767-300 should be showing up soon. This could be good news if we can secure more of them.


We all knew that DEN was going away, once SWA moved in. Loads were too good, and most were codeshares. DEN-PHX was successful the first week. IND had been dead for over a year. No suprise there. SJU is a surprise. SWA must planning on going in soon. They have overwater equiped aircraft already.

We have approx. 850 active pilots on the list. Down from 1100. Another 100-200 to be furloughed beginning in Jan. (100 confirmed with the likelihood of more coming)

We've heard that there is more news coming in the next week. Stay tuned. Just remember, it's A-T-A not A-T-who?

 

[SWA/FO]

Southwest is not to blame. We are not going to sit back and watch someone else make a move (Ie..AirTran..JetBlue).

I happen to think its a pretty sad turn of events at ATA, a bunch of great folks there... Now, I know none of you will believe me since I work for SWA and "I'm on top of the world", "the big fish", "the 800 pound gorilla" and "I'm arrogant"... But I believe SWA believed in the CODE SHARE, which was/is a business relationship. I guess the game plan changed along the way, be it NWA, Fuel prices or Us....who knows.

ATA was not able to recover, hold up their share of the code share, again who knows? So SWA has made some moves...we are going into Denver.....thats all I have heard so far? We are not going into any other city announced? no. (will we? who knows). Will every furloughed pilot from ATA get a job with SWA? Probably not... Will every furloughed ATA pilot get a job with AWA or Air Tran probably not.

 

[SWA/FO]

We don't have life rafts....only the vests.