As LCCs Soar, ATA To Add Business Class
FEBRUARY 05, 2004 -- Low-cost carrier ATA Airlines, the nation's 10th-largest commercial airline, next week plans to announce a new business class for its scheduled service fleet. Beginning in August, ATA will roll out the new product across its entire network. A premium product is a departure from the traditional low-cost strategy, but a company official said it will be a cornerstone of the airline's corporate sales efforts. Walk-up business class fares will be capped at $399, just $100 more than the cap on walk-up coach fares.
"We researched our customers, and they told us they wanted a business class," the official said. The new premium cabin particularly will help attract business on ATA's new transcontinental services (BTN, Oct. 20, 2003).
Next week's announcement would follow recent positive financial developments for the Indianapolis-based carrier. Earlier this week, parent company ATA Holdings Corp. posted its first full-year net profit since the 2001 terrorist attacks--albeit aided by U.S. government funds. It also reported for the first time full-year scheduled service revenue above $1 billion and received positive statements from Standard & Poor's Ratings Services and Moody's Investors Service regarding the company's recent actions to defer near-term cash obligations and bolster liquidity.
The reconfiguration--which will reduce the total number of seats on each plane--also will help ATA slow total capacity growth from 20 percent in 2003 to a 9 percent target in 2004
FEBRUARY 05, 2004 -- Low-cost carrier ATA Airlines, the nation's 10th-largest commercial airline, next week plans to announce a new business class for its scheduled service fleet. Beginning in August, ATA will roll out the new product across its entire network. A premium product is a departure from the traditional low-cost strategy, but a company official said it will be a cornerstone of the airline's corporate sales efforts. Walk-up business class fares will be capped at $399, just $100 more than the cap on walk-up coach fares.
"We researched our customers, and they told us they wanted a business class," the official said. The new premium cabin particularly will help attract business on ATA's new transcontinental services (BTN, Oct. 20, 2003).
Next week's announcement would follow recent positive financial developments for the Indianapolis-based carrier. Earlier this week, parent company ATA Holdings Corp. posted its first full-year net profit since the 2001 terrorist attacks--albeit aided by U.S. government funds. It also reported for the first time full-year scheduled service revenue above $1 billion and received positive statements from Standard & Poor's Ratings Services and Moody's Investors Service regarding the company's recent actions to defer near-term cash obligations and bolster liquidity.
The reconfiguration--which will reduce the total number of seats on each plane--also will help ATA slow total capacity growth from 20 percent in 2003 to a 9 percent target in 2004
