UPDATE 1-ATA to suspend flights to 3 cities from Chicago
Tue Dec 6, 2005 03:13 PM ET
(Adds details) NEW YORK, Dec 6 (Reuters) - Airline ATA (ATAHQ.PK: Quote, Profile, Research) on Tuesday said it would suspend flights to three cities from Chicago-Midway airport from the spring of 2006 as part of a broader cost-cutting initiative while the company reorganizes under bankruptcy protection.
The company said it would end service to Ft. Myers, Florida; Orlando, Florida; and San Francisco in late April of next year.
ATA, a low-cost carrier, filed for bankruptcy in October 2004. The company has been steadily shedding routes to deal with high fuel costs and excess capacity.
Last month it said it would suspend service to and from Denver, Indianapolis and San Juan, Puerto Rico. The airline will keep its headquarters in Indianapolis despite suspending its service to and from the city.
It had previously said it would cut service from Chicago to Boston, Newark and Minneapolis/St. Paul to trim costs.
The third link is the most "interesting." This might show SWA's true intentions, i.e. controlled slow liquidation with major assets transferred to them at pennies on the dollar.
"ATA should not allow Southwest to run roughshod."
Good quote, it looks like LUV might get their pee-pee slapped for early insistance on tranferance of the gates. It doesn't look that unreasonable to do what the ATSB is asking, which is to transfer the gates when the carrier emerges from bankruptcy, instead of immediately.
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