I.P. Freley
I like people food
- Joined
- Dec 26, 2001
- Posts
- 2,038
Welcome to Flightinfo.com
- Register now and join the discussion
- Friendliest aviation Ccmmunity on the web
- Modern site for PC's, Phones, Tablets - no 3rd party apps required
- Ask questions, help others, promote aviation
- Share the passion for aviation
- Invite everyone to Flightinfo.com and let's have fun
ATA Files for Chapter 11 Reorganization
- Thread starter sunnysideup
- Start date
- Watchers 4
Welcome to Flightinfo.com
- Register now and join the discussion
- Modern secure site, no 3rd party apps required
- Invite your friends
- Share the passion of aviation
- Friendliest aviation community on the web
No mention of aircraft is very interesting.
ATA is not going to need all those 737's and 757's without the MDW operation.
I would imagine that Air Tran couldn't get the aircraft leasors to renegotiate the leases on the planes so they didn't take them.
AWA, CO, HA, and Air Tran, and SWA will probably submit bids in court to try to get the airplanes now that the leasor took their chances with the court.
Air Tran has plenty of aircraft on order through Boeing so they don't need the airplanes. AWA and CO need 757's and can't get them new anymore so they will probably be the front bidders.
Who know's, it's all speculation at this point.
I only hope for the best for all the ATA people. Hopefully Air Tran offers some sort of job agreement.
ATA is not going to need all those 737's and 757's without the MDW operation.
I would imagine that Air Tran couldn't get the aircraft leasors to renegotiate the leases on the planes so they didn't take them.
AWA, CO, HA, and Air Tran, and SWA will probably submit bids in court to try to get the airplanes now that the leasor took their chances with the court.
Air Tran has plenty of aircraft on order through Boeing so they don't need the airplanes. AWA and CO need 757's and can't get them new anymore so they will probably be the front bidders.
Who know's, it's all speculation at this point.
I only hope for the best for all the ATA people. Hopefully Air Tran offers some sort of job agreement.
Great news for AirTran and awful news for ATA pilots. Can you imagine the morale through the end of the year if the transition occurs in January? Not good. I doubt AirTran would take the 737-800s - the 700s offer the same range I would expect AirTran to be conservative after this purchase. It could always convert 700 orders to 800 orders in the future (I believe they have that option with Boeing).sunnysideup said:
Will any part of ATA be salvaged (maybe a charter operation)? Good luck to all involved!
furloughed
Well-known member
- Joined
- Dec 2, 2001
- Posts
- 74
I don't think AirTran will take any ATA airplanes like Heavy set said. AirTran has a bunch of the 737-700s on order and can slowly grow into the Chicago market. They now have a place to put all those airplanes. AirTran will probably want to be conservative and digest this purchase especially in these times. The following was copied from another website. Good luck to all ATA employees.
Here is Mickelson's letter to us:
Dear Colleagues:
Today marks a milestone for ATA as we begin our transformation into a
refocused, streamlined and profitable airline. The steps we are taking
will help assure our future for our employees, customers and the cities we
serve.
Our parent company, ATA Holdings Corp. and certain subsidiaries, including
ATA Airlines, Inc., have filed for relief under Chapter 11. This means we
intend to restructure our debt and to continue business as usual. We will
stand by our customer commitments, honoring tickets, upholding our full
schedule, in-flight services and frequent flyer reward programs.
Along with the filing, we have reached an agreement with AirTran Airways,
Inc in which AirTran will assume our flight operations, gates lease, and
routes in Chicago Midway Airport as well as arrival and departure slots at
LaGuardia Airport and Ronald Reagan Washington National Airport. The
agreement, which needs the City of Chicago's approval, will take effect
later this year or early next year, and is to be finalized over the next
several days.
We are in continuing discussions with potential third-party lenders to
procure Debtor-In-Possession (DIP) financing. Meanwhile, the ATSB has agreed to allow us continued use of our cash collateral, which, combined
with the Company's projected cash flow from operations, should be
sufficient to fund the needs of ATA and our operating subsidiaries until we reach an agreement for DIP financing.
Our agreement with AirTran is key to our transformation
By re-structuring and partnering with AirTran, we intend to re-create ATA
as a formidable low-cost, albeit smaller competitor, capable of winning in
today's airline industry for our customers, employees, creditors and other
stakeholders. Together, ATA and AirTran will establish co-marketing
programs and code share agreements across both carriers' flight networks.
As part of the agreement, AirTran intends to outsource to us the servicing
of Chicago flights and pay us service fees over a specified transitional
period. These transition arrangements will allow us a gradual, measured
exit from Chicago, as well as provide the time and flexibility we need to
develop and execute our reorganization plan and to optimize our fleet and
plane sizes.
Reorganizing to emerge a stronger airline
Reorganizing will strengthen our business and competitive position, and
give us the resources to emerge a stronger airline. Our plan entails
optimizing our fleet and plane sizes and focusing on the most profitable
cornerstones of its business: commercial flights routed through our
Indianapolis hub, flights to Hawaii, military and some commercial charter
service. We also intend to retain our Chicago Express connection service
through Chicago Midway, as well as its Ambassadair Travel Club.
Business as Usual
We will continue operating business as usual while we reorganize and
execute our arrangement with AirTran. As we transform, we will maintain
our focus on serving customers with one of the youngest, most
fuel-efficient fleets and providing value-based everyday, low fares and
service that makes the travel experience easier and more affordable for
all our business and leisure travelers. We will also continue to improve
our services, such as retrofitting planes for business class service,
which we expect to complete by early 2005.
Chicago Midway is an important and valuable hub for ATA. We employ
hundreds of highly qualified and dedicated employees - ramp agents, flight
and cockpit crews, customer service agents, aircraft mechanics - that
provide a high level of passenger service, safety and security to
thousands of passengers every day.
After the agreement with AirTran, Chicago Midway will continue to need
hundreds of qualified and dedicated employees - ramp agents, flight and
cockpit crews, customer service agents, aircraft mechanics. Our Midway
employees are critical to the success of this transition and our
collective future.
Just as importantly, we are committed to Indianapolis, which will continue
to serve as ATA's headquarters location and primary hub. Indianapolis has
been a key source of our growth, and we will remain in the city we have
called home since 1973.
I know that you are all worried about the implications of this filing for
you personally and your ability to do your job. Let me assure you that we
are committed to paying employee salaries, wages and benefits without
interruption and through the normal processes.
In order for us to stand by our customer commitment to business as usual,
I ask you to continue providing the same high level of passenger service,
safety and security as well as operational excellence. I am counting on
everyone to continue providing that high level of service and value that
our customers expect and appreciate.
What's Next
Over the next few days we intend to finalize the details of our agreement
with AirTran. In addition, as part of the reorganization we will continue
to pursue necessary cost reductions across the company and implement a
compelling plan of reorganization. ATA's operating costs are among the
lowest in the industry but must continue to be addressed to achieve
profitability.
As part of this process, we will look at every element of our operations.
Once we have completed further work on a solid plan of reorganization, we
will submit it to our creditors and the court for approval.
Keeping You Informed
We will continue to communicate openly and regularly, and to share
information as it becomes available. We have created a special section on
EWS to keep you posted of the progress we make over the next few months.
You can find the link on the home page, as well as a link to the special
section of ATA.com. In addition, we will continue to post a new issue of
Info Line each week on EWS. And I am personally committed to communicating
directly with you as we move through this process.
Again, let me say how much your unfaltering dedication and loyalty
continues to impress me. Thank you for this commitment to ATA. Keep your
heads up.
Sincerely,
GEORGE MIKELSONS
Chairman & CEO
Here is Mickelson's letter to us:
Dear Colleagues:
Today marks a milestone for ATA as we begin our transformation into a
refocused, streamlined and profitable airline. The steps we are taking
will help assure our future for our employees, customers and the cities we
serve.
Our parent company, ATA Holdings Corp. and certain subsidiaries, including
ATA Airlines, Inc., have filed for relief under Chapter 11. This means we
intend to restructure our debt and to continue business as usual. We will
stand by our customer commitments, honoring tickets, upholding our full
schedule, in-flight services and frequent flyer reward programs.
Along with the filing, we have reached an agreement with AirTran Airways,
Inc in which AirTran will assume our flight operations, gates lease, and
routes in Chicago Midway Airport as well as arrival and departure slots at
LaGuardia Airport and Ronald Reagan Washington National Airport. The
agreement, which needs the City of Chicago's approval, will take effect
later this year or early next year, and is to be finalized over the next
several days.
We are in continuing discussions with potential third-party lenders to
procure Debtor-In-Possession (DIP) financing. Meanwhile, the ATSB has agreed to allow us continued use of our cash collateral, which, combined
with the Company's projected cash flow from operations, should be
sufficient to fund the needs of ATA and our operating subsidiaries until we reach an agreement for DIP financing.
Our agreement with AirTran is key to our transformation
By re-structuring and partnering with AirTran, we intend to re-create ATA
as a formidable low-cost, albeit smaller competitor, capable of winning in
today's airline industry for our customers, employees, creditors and other
stakeholders. Together, ATA and AirTran will establish co-marketing
programs and code share agreements across both carriers' flight networks.
As part of the agreement, AirTran intends to outsource to us the servicing
of Chicago flights and pay us service fees over a specified transitional
period. These transition arrangements will allow us a gradual, measured
exit from Chicago, as well as provide the time and flexibility we need to
develop and execute our reorganization plan and to optimize our fleet and
plane sizes.
Reorganizing to emerge a stronger airline
Reorganizing will strengthen our business and competitive position, and
give us the resources to emerge a stronger airline. Our plan entails
optimizing our fleet and plane sizes and focusing on the most profitable
cornerstones of its business: commercial flights routed through our
Indianapolis hub, flights to Hawaii, military and some commercial charter
service. We also intend to retain our Chicago Express connection service
through Chicago Midway, as well as its Ambassadair Travel Club.
Business as Usual
We will continue operating business as usual while we reorganize and
execute our arrangement with AirTran. As we transform, we will maintain
our focus on serving customers with one of the youngest, most
fuel-efficient fleets and providing value-based everyday, low fares and
service that makes the travel experience easier and more affordable for
all our business and leisure travelers. We will also continue to improve
our services, such as retrofitting planes for business class service,
which we expect to complete by early 2005.
Chicago Midway is an important and valuable hub for ATA. We employ
hundreds of highly qualified and dedicated employees - ramp agents, flight
and cockpit crews, customer service agents, aircraft mechanics - that
provide a high level of passenger service, safety and security to
thousands of passengers every day.
After the agreement with AirTran, Chicago Midway will continue to need
hundreds of qualified and dedicated employees - ramp agents, flight and
cockpit crews, customer service agents, aircraft mechanics. Our Midway
employees are critical to the success of this transition and our
collective future.
Just as importantly, we are committed to Indianapolis, which will continue
to serve as ATA's headquarters location and primary hub. Indianapolis has
been a key source of our growth, and we will remain in the city we have
called home since 1973.
I know that you are all worried about the implications of this filing for
you personally and your ability to do your job. Let me assure you that we
are committed to paying employee salaries, wages and benefits without
interruption and through the normal processes.
In order for us to stand by our customer commitment to business as usual,
I ask you to continue providing the same high level of passenger service,
safety and security as well as operational excellence. I am counting on
everyone to continue providing that high level of service and value that
our customers expect and appreciate.
What's Next
Over the next few days we intend to finalize the details of our agreement
with AirTran. In addition, as part of the reorganization we will continue
to pursue necessary cost reductions across the company and implement a
compelling plan of reorganization. ATA's operating costs are among the
lowest in the industry but must continue to be addressed to achieve
profitability.
As part of this process, we will look at every element of our operations.
Once we have completed further work on a solid plan of reorganization, we
will submit it to our creditors and the court for approval.
Keeping You Informed
We will continue to communicate openly and regularly, and to share
information as it becomes available. We have created a special section on
EWS to keep you posted of the progress we make over the next few months.
You can find the link on the home page, as well as a link to the special
section of ATA.com. In addition, we will continue to post a new issue of
Info Line each week on EWS. And I am personally committed to communicating
directly with you as we move through this process.
Again, let me say how much your unfaltering dedication and loyalty
continues to impress me. Thank you for this commitment to ATA. Keep your
heads up.
Sincerely,
GEORGE MIKELSONS
Chairman & CEO
Last edited:
Chicago Midway is an important and valuable hub for ATA. We employ
> hundreds of highly qualified and dedicated employees - ramp agents, flight
> and cockpit crews, customer service agents, aircraft mechanics - that
> provide a high level of passenger service, safety and security to
> thousands of passengers every day.
>
> After the agreement with AirTran, Chicago Midway will continue to need
> hundreds of qualified and dedicated employees - ramp agents, flight and
> cockpit crews, customer service agents, aircraft mechanics. Our Midway
> employees are critical to the success of this transition and our
> collective future. Mikelson's quote.
What does this mean to you guys at ATA. It seems a little confusing, but I hope he protected you. I jump seat you guys alot, and to a person, you have always been extra nice. Good luck to all of you.
> hundreds of highly qualified and dedicated employees - ramp agents, flight
> and cockpit crews, customer service agents, aircraft mechanics - that
> provide a high level of passenger service, safety and security to
> thousands of passengers every day.
>
> After the agreement with AirTran, Chicago Midway will continue to need
> hundreds of qualified and dedicated employees - ramp agents, flight and
> cockpit crews, customer service agents, aircraft mechanics. Our Midway
> employees are critical to the success of this transition and our
> collective future. Mikelson's quote.
What does this mean to you guys at ATA. It seems a little confusing, but I hope he protected you. I jump seat you guys alot, and to a person, you have always been extra nice. Good luck to all of you.
Interesting, but not too surprising, that a trimmed-down ATA is the goal. So, I presume that expensive leases will be dumped after the AirTran transition. I have heard that the 737-800s are particularly expensive (and maybe some of the 757-300s). Ownership costs on the Tristar are low but operating costs are sky-high due to fuel costs - not sure how that will impact their short-term viability unless the MAC contract requires continued use for awhile. ATA has operated 757-200s for a long time and probably has some older models with low lease rates.
It's all speculation at this point (and of course anything could happen), but I am betting that a trimmed-down version of ATA will include the Tristars for MAC work (possibly to be replaced with 767-200s/300s in the long term) and 757-200s for the leisure/charter work. You could also argue that the 757-300s will be good for Hawaii flights - but I am not sure what their lease rates are - high or low will impact the go/no-go decision. It is difficult to understand how ATA will maintain Indianapolis flights with all of the LCC competition out there. Chicago Express could be maintained to ultimately serve AirTran at MDW and continue its feed.
So, I would guess the Tristar (probably to be replaced by 767s) and the 757-200 will likely constitute the bulk of the future ATA fleet in the medium to long term so long as ATA can survive the bankruptcy process and the super-high fuel costs that everyone must endure (except SWA). If the 737-800s are indeed very expensive, it would difficult for ATA to keep them unless Boeing made them an offer they couldn't refuse in Chap. 11. ATA will probably want to reduce training and maintenance expenses and trimming the fleet down to a 2 types would be once step in the right direction. The Tristar would likely be kept in the short-term if the military requires their constant use in the MAC contract (unless they can provide the same capacity using the 757-300s).
It's complete guesswork at this point, but that's my initial $0.02. Any thoughts?
It's all speculation at this point (and of course anything could happen), but I am betting that a trimmed-down version of ATA will include the Tristars for MAC work (possibly to be replaced with 767-200s/300s in the long term) and 757-200s for the leisure/charter work. You could also argue that the 757-300s will be good for Hawaii flights - but I am not sure what their lease rates are - high or low will impact the go/no-go decision. It is difficult to understand how ATA will maintain Indianapolis flights with all of the LCC competition out there. Chicago Express could be maintained to ultimately serve AirTran at MDW and continue its feed.
So, I would guess the Tristar (probably to be replaced by 767s) and the 757-200 will likely constitute the bulk of the future ATA fleet in the medium to long term so long as ATA can survive the bankruptcy process and the super-high fuel costs that everyone must endure (except SWA). If the 737-800s are indeed very expensive, it would difficult for ATA to keep them unless Boeing made them an offer they couldn't refuse in Chap. 11. ATA will probably want to reduce training and maintenance expenses and trimming the fleet down to a 2 types would be once step in the right direction. The Tristar would likely be kept in the short-term if the military requires their constant use in the MAC contract (unless they can provide the same capacity using the 757-300s).
It's complete guesswork at this point, but that's my initial $0.02. Any thoughts?
Citrus Jockey
Active member
- Joined
- Jun 5, 2002
- Posts
- 40
Not really. AirTran has a sizable operation out of BWI, which is a SWA base. 40-50 flights a day or something like that. But Chicago is a much larger O/D city and with AirTran replacing ATA's 757s and 737-800s with 717s and 737-700s capacity out of MDW will likely be reduced.HoursHore said:
Share this page
Latest resources
-
-
-
-
-
AC 90-89C - Amateur-Built Aircraft and Ultralight Flight Testing HandbookAmateur-Built Aircraft and Ultralight Flight Testing Handbook
- Neal
- Updated:
