ATA Health?

[radarlove]

This might be the hubris that ends up unwinding the whole deal. It does, in fact, sound like a reorganization in sheep's clothing.

In a bankruptcy, you can't screw creditors over unequally, if you're going to screw them over, they have to get an equal screwing. Matilin, by limiting the bondholders to 2% of the new company, gives labor more (5%) than the secured creditors, all without a vote.

Although, does anyone think that the gates are really worth more than $20 million? $5 million a gate might be on the high end and I bet an auction process would end up with the same results. But then, how could anyone tell without an auction? By the same token, once you start auctioning stuff, you're back into the reorganization plan and treading pretty close to conversion to a Ch. 7 process.

This is going to be interesting. I bet Matlin gets their pee-pee slapped in court.

 

[HalinTexas]

This might be the hubris that ends up unwinding the whole deal. It does, in fact, sound like a reorganization in sheep's clothing.

In a bankruptcy, you can't screw creditors over unequally, if you're going to screw them over, they have to get an equal screwing. Matilin, by limiting the bondholders to 2% of the new company, gives labor more (5%) than the secured creditors, all without a vote.

Although, does anyone think that the gates are really worth more than $20 million? $5 million a gate might be on the high end and I bet an auction process would end up with the same results. But then, how could anyone tell without an auction? By the same token, once you start auctioning stuff, you're back into the reorganization plan and treading pretty close to conversion to a Ch. 7 process.

This is going to be interesting. I bet Matlin gets their pee-pee slapped in court.

Maybe, but I bet the basic deal still goes through. These folks that are whining now did nothing to help out pre-bankruptcy. The pilot group alone has given over $70M in the last 18 months, and we won't see any of that back any time soon.

 

[tzskipper]

Deal may be done?

So much for MP getting their pee-pee slapped...

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051124/BUSINESS/511240352&SearchID=73227538043115

Skipper

 

[elcapitan]

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051123/BUSINESS/511230378

And almost a year ago today:

Note the we will be a larger airline than under the Airtran deal...

> -----Original Message-----
> From: ATA InterNews
> Sent: Thursday, December 16, 2004 12:20 PM
> To: *ATAH Employees
> Subject: Employee Letter from George Mikelsons
>
> Dear Fellow Employees,
>
> Today I am pleased to announce that we have accomplished a critical
> cornerstone of our reorganization - we selected the bid of Southwest
> Airlines. It covers the acquisition of certain of ATA's Midway Airport
> lease rights, and is subject to approvals by the U.S. Bankruptcy Court for
> the Southern District of Indiana and the City of Chicago. Our press
> release is attached.
>
> As you know we began this process by focusing on doing the best thing for
> our employees and our customers. We appreciate the efforts of AirTran
> Airways but the Southwest transactions are the best possible outcome for
> ATA.
>
> There are many things about this selection that made it much more
> attractive than any other bids, and the best possible solution for ATA.
> Our alliance with Southwest Airlines, the airline that carries more
> domestic U.S. passengers than any other carrier, includes:
> * Keeping eight gates at Chicago Midway, in addition to our expanding
> presence in Indianapolis
> * Maintaining more planes and employees than we would be able to do
> under other proposals, thus keeping ATA a larger airline
> * Receiving $117 million from Southwest including $40 million to
> transfer lease rights to six gates and a maintenance hangar at Midway, $47
> million in financing and an investment of $30 million into ATA once we
> emerge from Chapter 11, representing 27.5% of equity in a reorganized ATA
> * Launching a code share alliance in early February - the first
> significant one for both airlines - that allows each airline to transfer
> passengers to the other airline on a single ticket
> * Aligning ATA with the strongest airline in the industry and one that
> I personally admire above all others
>
> Another significance of our deal is the rapid speed at which we achieved
> it. I am proud that we were able to do this in less than eight weeks,
> thanks to our attorneys Steve Claffey, Jim Carr and their colleagues at
> Indy's Baker and Daniels law firm.
>
> As we begin the transfer of our lease rights for six gates to Southwest
> Airlines, we will continue business as usual. We intend to stand by our
> customer commitments, honoring tickets, upholding its full flight
> schedule, in-flight services and frequent flyer reward programs, as we
> have continued to do during our reorganization.
>
> While we expect to reduce our fleet by about 20 percent, as we scale back
> in Chicago, we will remain a larger airline than we would have been under
> the AirTran Airways competing bid. We will continue with a significant
> presence at Midway with the retention of eight gates for U.S. domestic and
> international flights. We also plan to continue our expansion in the Indy
> market, continue to serve the west coast to Hawaii market, as well as
> operate military and commercial charter flights. Southwest Airlines has
> also committed to priority interviews for ATA employees affected by our
> fleet reductions.
>
> We are excited about our alliance with Southwest Airlines and the healthy
> growth that this means for ATA's future. I'm sure you will agree with me
> when I say that Southwest is the premier low cost carrier in the world and
> it will be a distinct privilege to work with Southwest going forward. We
> expect to share many more details of our exciting code share agreement and
> the full breadth of our reorganization plan with you in the near future.
>
> Since Southwest's bid was just accepted last night, we are finishing up
> all of the materials. We will be posting Q&As on EWS later today. We also
> will continue to post regular updates on the special restructuring section
> on EWS, which will replace the InfoLine updates.
>
> Thanks for your continued patience and commitment to ATA and our customers
> during these changing times. With your help and our alliance with
> Southwest, we will become a stronger, more competitive airline with a
> bright future ahead of us.
>
> Sincerely,
>
> GEORGE MIKELSONS
> Chairman & CEO
>
>
>
> <<ata_selects_swa.pdf>>

 

[capt. megadeth]

Basically anything an executive says, just think the exact opposite and that's what will happen.

 

[tranceport]

Here today, gone to Maui.


All Southwest ever wanted was the gates....and the city and the courts gave their blessing, duh. The city of Chicago and the BK process could care less about labor....it's played out all the time, not only with airlines.

they weren't going to pass up a very inexpensive opportunity to completely dominate an airport. everybody in their way is just biding time.

Good luck to all former and soon to be former ATA employees.

 

[HalinTexas]

The plan for the Airtran deal as told to our union was that ATA would have been down to 400-450 pilots by summer. I would have been gone. ATA was also to retreat/retrench into IND, where, I'm sure, would have resulted in our liquidation by now.

GM was the principle reason why we're in BK today. We could have declared 10 months sooner and been better off, however, he refused to relinquish his control. He fired JT, but didn't change the business plan. What good did that do?

 

[atafan]

This is not a slame on AirTran by any means but if the AirTran deal would have taken place last year ATA would not have made it past last Spring.

If SWA only wanted the gates we would not have made it through the summer. ATA only survives today because we have dedicated hard working employees that has made this airline an airline that can add worth to SWA and ultimately provide a cash stream to their bottom line. ATA will provide international feed to SWA quicker and cheaper than if they developed it on their own.

Was this SWA's original intention last winter? I don't believe it was, I believe what they originally said was the truth, they were originally only interested in keeping AirTran out of MDW. By working closely with ATA and having their man John Denison on property at ATA this new arrangement is morphing into a long term agreement that will ultimately be good for SWA and then of course for ATA employees ultimately.

I believe that, at least from a pilot's perspective, the pilot's of ATA and SWA will play well together and put aside petty issues for the common good of both companies.

 

[capt. megadeth]

This is not a slame on AirTran by any means but if the AirTran deal would have taken place last year ATA would not have made it past last Spring.

If SWA only wanted the gates we would not have made it through the summer. ATA only survives today because we have dedicated hard working employees that has made this airline an airline that can add worth to SWA and ultimately provide a cash stream to their bottom line. ATA will provide international feed to SWA quicker and cheaper than if they developed it on their own.

Was this SWA's original intention last winter? I don't believe it was, I believe what they originally said was the truth, they were originally only interested in keeping AirTran out of MDW. By working closely with ATA and having their man John Denison on property at ATA this new arrangement is morphing into a long term agreement that will ultimately be good for SWA and then of course for ATA employees ultimately.

I believe that, at least from a pilot's perspective, the pilot's of ATA and SWA will play well together and put aside petty issues for the common good of both companies.

For your sake, I hope you are right.....but it sounds like too much turkey yesterday went to your head. Good luck.

 

[apache]

This is not a slame on AirTran by any means but if the AirTran deal would have taken place last year ATA would not have made it past last Spring.

If SWA only wanted the gates we would not have made it through the summer. ATA only survives today because we have dedicated hard working employees that has made this airline an airline that can add worth to SWA and ultimately provide a cash stream to their bottom line. ATA will provide international feed to SWA quicker and cheaper than if they developed it on their own.

Was this SWA's original intention last winter? I don't believe it was, I believe what they originally said was the truth, they were originally only interested in keeping AirTran out of MDW. By working closely with ATA and having their man John Denison on property at ATA this new arrangement is morphing into a long term agreement that will ultimately be good for SWA and then of course for ATA employees ultimately.

I believe that, at least from a pilot's perspective, the pilot's of ATA and SWA will play well together and put aside petty issues for the common good of both companies.

Or.....................Maybe this has been a year long interview process with ATA and WN doesn't like what they see.......................

 

[atafan]

Or.....................Maybe this has been a year long interview process with ATA and WN doesn't like what they see.......................

I think you are right, it has been a long interview with SWA.

The word I'm getting is that The codeshare has been renewed and enhanced. I guess the interview is not going badly.

IMHO

 

[radarlove]

So much for MP getting their pee-pee slapped...

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051124/BUSINESS/511240352&SearchID=73227538043115

Skipper

After reading the article, I came to the conclusion (surprise) that I was right. Matlin did, in fact get their pee-pee slapped. They had to pony up a much higher percentage of the stock to the creditors than they originally were going to, the actual amount is still secret.

I think this does make it look like SWA is going to get the gates though.

 

[vc10]

What's the latest, guys? I have to believe that the HQ of ATA is going to move from Indy, now that ATA has zero scheduled flying from Indy. Or is that just wrong?

After reading the article, I came to the conclusion (surprise) that I was right. Matlin did, in fact get their pee-pee slapped. They had to pony up a much higher percentage of the stock to the creditors than they originally were going to, the actual amount is still secret.

I think this does make it look like SWA is going to get the gates though.

 

[atafan]

ATA Update.

Enhanced codeshare with SWA was signed and extended for 7 years. Unsecured creditors have bought off on the MP/SWA deal, plan to be submitted to Bankruptcy court this week on the 6th. Expect to hear new cities announced with codeshare soon.

The plan as I am told is that ATA will become the international airline for SWA, ATA has exclusive rights to codeshare with SWA. SWA will begin local advertising for ATA routes and include ATA logo and advertising on the SWA website highlighting the ATA routes.

This week should supply new information.

 

[1800 RVR]

This is great news for all my ATA buds. I wish all of you the best of luck for this new year! I miss flying with you guys. Truly, a great bunch of professionals! I hope this works out!