ATA Bidders All Show Themselves

[storminpilot]

http://www.indystar.com/articles/7/201155-2707-092.html

Southwest enters bidding for bankrupt ATA
Dallas-based airline in battle with AirTran Airways for Indianapolis-based firm's prized gates at Chicago's Midway Airport.


By Ted Evanoff
[email protected]
December 10, 2004

ATA Airlines moved closer to surviving bankruptcy and staying in business as a smaller regional carrier when a bidding battle emerged Friday for its prized gates at Chicago Midway between Southwest Airlines and AirTran Airways.

No other carrier came through with a buyout offer for all of ATA by the deadline Friday. That opens the way for ATA chairman and founder J. George Mikelsons' proposal to shed more than 1,000 pilots and flight attendants and regroup as a regional line using some cash from a Midway gate sale.

Southwest and AirTran could get into a bidding match over the Chicago hub Monday in Indianapolis when ATA and its creditors review the bids in preparation for making a recommendation by Thursday to the U.S. bankruptcy court.

A lawyer for 7,700-employee ATA, founded in Indianapolis in 1972 as a charter service with a single Boeing 727, expressed the strongest optimism heard from the nation's No. 10 airline since it filed for bankruptcy protection Oct. 26.

"The tide is going to turn. This is the beginning of the turnaround," said Stephen Claffey, ATA's attorney since 1980 and a member of the Baker & Daniels law firm in Indianapolis.

Southwest and AirTran earlier had revealed they would make a pitch for the Midway gates and publicly confirmed Friday they had submitted offers. Apparently no bid came in from a third carrier, although ATA officials earlier had said one might be made.

However, Baker & Daniels hadn't sorted their electronic mail late Friday afternoon for any offers -- the bid deadline was 4 p.m. Friday -- and there was a possibility of an unopened bid. Claffey said other lawyers working on the ATA matter were in Jeffersonville, Ind., on business unrelated to ATA, putting them out of position to check bids sent to their e-mail addresses. He said the bid packages sent out to prospective bidders contained an incorrect e-mail address for him.

Officials familiar with the process said other potential bidders include Hawaiian Airlines of Honolulu for ATA's Pacific routes, WestJet of Calgary, Alberta, for an undisclosed number of gates at Midway and New York LaGuardia, and Wexford Management LLC of Greenwich, Conn., for Chicago Express, a subsidiary of ATA parent ATA Holdings Corp.

Wexford controls Indianapolis-based Republic Airways, operator of regional jets shuttling passengers to hubs of several major carriers. Wexford and WestJet declined comment. Hawaiian Airlines had no comment.

Southwest filed a $100 million offer for six of ATA's 14 Chicago gates. AirTran Airways earlier offered $89.3 million for the 14 gates and slots at New York LaGuardia and Reagan Washington.

Lawyers for ATA and its creditors plan to read the bid details Saturday and Sunday and question bidders on Monday and, if necessary, Tuesday. U.S. Bankruptcy Judge Basil Lorch III is expected to pick one of the offers on Thursday.

"We do have room to negotiate but details will be worked out on Monday," said Southwest spokeswoman Whitney Eichinger.

Southwest's offer breaks down to more than $50 million for the six gates and less than $50 million in cash to ATA plus a deal that would enable travelers to buy one ticket and fly on ATA and Southwest. That deal, known as code-sharing, would apply to less than 10 routes out of Midway, where Southwest is currently the dominant carrier with more than 19 gates.

Under the AirTran proposal, ATA's 300-seat Boeing 757 's could fly to AirTran hubs at Baltimore and Atlanta and return to Indianapolis, or travel on ATA's current long-haul routes to the Caribbean, Mexico, Hawaii and California.

"We are confident that our offer is superior in that it provides the most cash for ATA and there's network-wide code-sharing benefits and greater opportunities for growth for ATA," said Kevin Healy, AirTran vice president for planning.

ATA's Claffey said he hadn't seen the Southwest bid package, but he noted a potential code-sharing arrangement could benefit ATA by steering more travelers to its planes.

"It could turn out to be an opportunity for ATA if Southwest is interested," Claffey said "It's my understanding they are the strongest airline in the country."

Call Star reporter Ted Evanoff at (317) 444-6019

 

[Pickle]

Geez, I would hate to imagine what the seat pitch is on those "300-seat Beoing 757's".

 

[propjob27]

E D I T:

See everyone there on Monday. Good luck to everyone.

-T

 

[njcapt]

See you in line Monday, Pickle. How early do we have to get there? Is it going to be like the 1st new StarWars movie on opening night? Do I have to get there Sunday night and bring a tent?

Personally, I don't think anybody is going to show up before 1030, 1000 at the earliest. Any earlier than that and you'll look like a total suck-up. A tool. You don't want to look like a tool, do you?

















See you guys there at 0830.

 

[mt2]

Would those be the same 300 seat 757's that Boeing is taking back and then leasing them to CAL ?? And imagine being able to return to Indianapolis -- how exciting !!

 

[jettypeguy]

Personally, I don't think anybody is going to show up before 1030, 1000 at the earliest. Any earlier than that and you'll look like a total suck-up. A tool. You don't want to look like a tool, do you?

See you guys there at 0830.

Just wanted to give you fellow ATA guys an update, reporting here from the "line" for the Airtran meet n greet. Was hoping to be the first in line but I'm #2, Beal is ahead of me. Got my tent pitched and we are all sharing a bag of cheetos for dinner. It's gonna be a long weekend but I have a few good porn movies on my computer and a case of beer to pass the time. Gosh I hope they don't do that lottery system like ticketmaster.....

 

[350DRIVER]

How many are planning to attend and why is this only applicable to mdw based folks?.

Dear Amanda XXXXXXXXX,

Update 12-8-04:

This year is potentially ending with the worst calamity that
we've ever experienced at ATA. Everyone is waiting with baited
breath to discover who we will be after December 16th. Our
combined emotions are riddled with the expectations of more
furloughs, the possibility of losing our ATA identity, switching
to someone's lesser payscale, and it's all like taking a big
step into the unknown.

The MEC met last week with the America West MEC and Management,
to discuss details of a possible merger. Their management, in an
effort to have a complete proposal before submitting their bid,
is seeking agreement from both the ALPA and AFA MEC for the
terms of an interim agreement. What we would be looking at is a
'fence' agreement of approximately 12-24 months, during which
time we would continue to operate ATA's routes and aircraft.
Some A/C may shift earlier into the AWA system, taking with it
the required # of F/As to increase their system and avoid
further furloughs in ours. At the end of the fence agreement, we
would be then come under the AWA F/A's collective bargaining
agreement. Hopefully by that time, they will have completed
their current contract negotiations, and we will be merged
completely into the language and provisions of the new
agreement.

Initially, there will be furloughs as a result of a reduction of
our fleet. However, AWA has new A/C arriving intermittently in
the months to come, so recalls from our furloughs will fill
their staffing needs, if their bid is successful. Our accrued
flight attendant seniority would be merged evenly into theirs
when the 'fence' agreement is removed.

We expect to have an agreement with the America West management
prior to this coming Friday.

Merger Committee:

While the MEC was gathered in Phoenix, it did seem the
appropriate time to select the Merger Committee. The MEC
selected Terry Kiernan, who was a previous MEC President with
Trans America, has negotiated contracts and mergers and is now
serving on a Negotiations' Committee. Rhonda Hogard was selected
due to her keen knowledge of our Scheduling provisions, and the
MEC President.

Unsecured Creditor's Committee:

The Official Committee of the Unsecured Creditors will be
meeting on Thursday with the AWA CEO. On Friday an additional
meeting is scheduled with SWA management. As you know by now,
all discussions within the OCUC are confidential.

Jacki Pritchett
ATA MEC President

Only 1 day earlier before the bad news hit- Wish ya'll the best of luck-

3 5 0

 

[Ty Webb]

I completely understand why ATA pilots might feel less than enthusiatic about an AirTran interview under these conditions.

My best suggestion, though, is to brush up those interview skills, muster up some enthusiasm for AirTran, smile, show some teeth, and if this deal goes through, we will welcome you guys aboard a growing, profitable company with new, well-maintained equipment and a fairly quick upgrade (around 2 and a half years). Even if the deal doesn't go through, we have been hiring ATA guys already, we will all welcome you aboard.

 

[FLYNAKD]

What is the deal with this? I just heard about it today and no one seems to really know. Just show up and start talking to people or what? No, I don't want to look like a tool (very easy for me to do though) and show up for something that is just there for show. I'm asking for opinions so I've come to the right place. Let's hear it.

 

[ATA73Pilot]

It's a "Meet-& -Greet".

Shake hands, smile, talk about why you want to work for AirTran, hand over a resume, try to make a favorable impression, and step aside for the next guy in line.

If you are fortunate they will overlook the fact that you are only interested in applying because your airline failed...any port in the storm....and give you a call for an interview in the near future.

Good Luck! (Seriously).