AA717driver
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ATA in court this afternoon...
- Thread starter AA717driver
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chperplt
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Locally based ATA Holdings Corp., parent of ATA Airlines Inc., is expected to file for Chapter 11 bankruptcy protection in Indianapolis early this week.
The filing would call for Orlando-based AirTran Holdings Inc. to purchase select ATA assets. ATA, through New York public relations firm Hill & Knowlton, declined to comment. The announcement was expected to come Monday afternoon, but according to WISH-TV sources, attorneys were still working on the filing as of Monday evening.
In a traditional Chapter 11 filing, creditors are kept at bay for months or years while a company tries to restructure debt and develop a survival plan. ATA's filing could be prepackaged, a strategy in which a company maps out its survival plan outside of court, then submits it for speedy court approval, potentially concluding the bankruptcy process in as little as 30 to 45 days.
ATA's financial troubles could have a big impact on the Indianapolis Airport Authority, especially as it proceeds with the $974 million midfield terminal project due for completion in 2008.
The Indianapolis airline--the busiest carrier at Indianapolis International Airport with 24.2 percent of traffic--paid the authority about $6.6 million in 2003 in everything from terminal rent to landing fees.
The Indianapolis Business Journal Contributed to This Report
The filing would call for Orlando-based AirTran Holdings Inc. to purchase select ATA assets. ATA, through New York public relations firm Hill & Knowlton, declined to comment. The announcement was expected to come Monday afternoon, but according to WISH-TV sources, attorneys were still working on the filing as of Monday evening.
In a traditional Chapter 11 filing, creditors are kept at bay for months or years while a company tries to restructure debt and develop a survival plan. ATA's filing could be prepackaged, a strategy in which a company maps out its survival plan outside of court, then submits it for speedy court approval, potentially concluding the bankruptcy process in as little as 30 to 45 days.
ATA's financial troubles could have a big impact on the Indianapolis Airport Authority, especially as it proceeds with the $974 million midfield terminal project due for completion in 2008.
The Indianapolis airline--the busiest carrier at Indianapolis International Airport with 24.2 percent of traffic--paid the authority about $6.6 million in 2003 in everything from terminal rent to landing fees.
The Indianapolis Business Journal Contributed to This Report
AA717driver
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INDIANAPOLIS (AP)--Alan Mills, an attorney for a firm that represents several of ATA Holdings Corp.'s (ATAH) creditors, told Indianapolis television station WTHR Monday that airline ATA was expected to file for bankruptcy protection on Tuesday.
ATA's parent corporation has appointed a chief restructuring officer amid heightened speculation that the nation's 10th-largest airline might be nearing bankruptcy.
Gilbert F. Viets, ATA's vice president and chief financial officer, will oversee the restructuring of the company's debt, ATA Holdings said Monday in a news release.
Late Monday, Mills did not immediately return a call at his law firm seeking comment.
Shares of Indianapolis-based ATA Holdings fell 13 cents to close at $1.46 Monday on the Nasdaq Stock Market.
Also Monday, Moody's Investors Service downgraded the airline's senior unsecured debt to C from Ca, citing "the continued deterioration in the company's financial profile and the possibility that a judicial restructuring of the company's debt will become necessary
ATA's parent corporation has appointed a chief restructuring officer amid heightened speculation that the nation's 10th-largest airline might be nearing bankruptcy.
Gilbert F. Viets, ATA's vice president and chief financial officer, will oversee the restructuring of the company's debt, ATA Holdings said Monday in a news release.
Late Monday, Mills did not immediately return a call at his law firm seeking comment.
Shares of Indianapolis-based ATA Holdings fell 13 cents to close at $1.46 Monday on the Nasdaq Stock Market.
Also Monday, Moody's Investors Service downgraded the airline's senior unsecured debt to C from Ca, citing "the continued deterioration in the company's financial profile and the possibility that a judicial restructuring of the company's debt will become necessary
SpeedBird
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Looks like Tuesday (10/26) is the new filing window for ATA....well at least according to this news article.
http://www.wthr.com/global/story.asp?s=2478642&ClientType=Printable
http://www.wthr.com/global/story.asp?s=2478642&ClientType=Printable
ATA73Pilot
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Entire article:
http://www.indystar.com/articles/5/189172-3665-092.html
Highlighted Points Below:
ATA appears ready to set off a bidding contest for the Midway gates and other lucrative pieces of the airline among discount carriers America West of Tempe, Ariz., and AirTran Airways of Orlando, Fla., industry analysts and pilots' union official Erik Engdahl said Monday.
AirTran wants control of the Midway hub to lessen its dependence on operations in Atlanta, where its largest hub faces a fare war with dominant carrier Delta Airlines.
America West appears more interested in acquiring the entire 7,700-employee ATA to give it more heft to take on major rivals such as American Airlines and discount carrier Southwest Airlines.
If ATA does file for bankruptcy, it would set in motion several weeks of negotiations between Viets and ATA creditors and potential suitors.
Selling the Midway gates to AirTran would gut a lucrative piece of the airline and could set in motion the dismantling of ATA, which accounts for 39 percent of Midway's passenger traffic.
Members of the pilots' union completed a poll Saturday on their web site asking if in the second round of concessions they would prefer to change work rules, reduce salaries or both. The results should be tallied by Friday, Engdahl said.
A similar phone poll of 315 of the 1,038 pilots in early October found the majority favored taking both actions, Engdahl said.
http://www.indystar.com/articles/5/189172-3665-092.html
Highlighted Points Below:
ATA appears ready to set off a bidding contest for the Midway gates and other lucrative pieces of the airline among discount carriers America West of Tempe, Ariz., and AirTran Airways of Orlando, Fla., industry analysts and pilots' union official Erik Engdahl said Monday.
AirTran wants control of the Midway hub to lessen its dependence on operations in Atlanta, where its largest hub faces a fare war with dominant carrier Delta Airlines.
America West appears more interested in acquiring the entire 7,700-employee ATA to give it more heft to take on major rivals such as American Airlines and discount carrier Southwest Airlines.
If ATA does file for bankruptcy, it would set in motion several weeks of negotiations between Viets and ATA creditors and potential suitors.
Selling the Midway gates to AirTran would gut a lucrative piece of the airline and could set in motion the dismantling of ATA, which accounts for 39 percent of Midway's passenger traffic.
Members of the pilots' union completed a poll Saturday on their web site asking if in the second round of concessions they would prefer to change work rules, reduce salaries or both. The results should be tallied by Friday, Engdahl said.
A similar phone poll of 315 of the 1,038 pilots in early October found the majority favored taking both actions, Engdahl said.
saabcaptain
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If you go to the news link at www.airlinenut.com it seems that Yahoo is listing a story that ATA is still in talks with Air Tran and America West for a pre-packaged bankruptcy as early as today.
DenverDude2002
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I heard from flying America West this that rumor of them picking up ATA seems to have some real truth behind it, and from what I heard they indeed want all of ATA including the 738's and 757s. If anyone gets ATA I hope its America West, they seem like a really great airline after having them for 4 flights this past weekend.
miles otoole
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FarginDooshbahg
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Seems like that rumor has NO "truth to it". If America West "wants all of ATA" they ain't gettin' it. Read on:DenverDude2002 said:
AirTran Airways Agrees to Assume Chicago Midway Gates and Acquire Certain Other Assets of ATA Airlines
ORLANDO, Fla., Oct. 26 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI), announced today that the airline has agreed, subject to certain conditions, to assume the Chicago Midway Airport gate leases and acquire certain other related assets including takeoff and landing slots at New York's LaGuardia and Washington's Ronald Reagan National airports of ATA Airlines, a unit of ATA Holdings Corp.(Nasdaq: ATAH), for approximately $87.5 million. ATA Holdings Corp., and certain of its subsidiaries, have filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana.
Under the agreement with ATA Airlines, AirTran Airways would assume ATA's leases on up to 14 gates at Chicago's Midway Airport, 19 time-controlled take-off and landing slots at New York's LaGuardia Airport and 8 such slots at Washington's Reagan National Airport. The deal must receive various approvals, including approval of the Bankruptcy Court in ATA's Chapter 11 proceeding. In the interim, ATA Airlines is to continue operating flights and business as usual at Chicago's Midway Airport.
AirTran Airways plans to introduce its fuel efficient, all new Boeing fleet on the routes from Chicago Midway, and intends to enter into a marketing agreement with ATA Airlines which is currently contemplated to include a code-share, frequent traveler program and other programs to benefit both carriers' customers. In conjunction with the code-share arrangement, the carriers, also intend to enter into an agreement to outsource certain flying during the transition of service from ATA Airlines to AirTran Airways at Chicago's Midway Airport.
"This proposal offers a great opportunity for both AirTran Airways and the City of Chicago as well as significantly aiding ATA in its reorganization,"said Joe Leonard, chairman and chief executive officer of AirTran Airways. "Adding a hub in Chicago is an important strategic expansion for AirTran Airways' growing network," stated Robert L. Fornaro, president and chief operating officer. "A Midwest hub complements AirTran Airways' strong East Coast network and will capitalize on a number of synergies in the cities we serve across the country. This addition will give AirTran Airways a true national presence. We look forward to increasing our service for the Chicago business and leisure travelers."
AirTran Airways is one of America's largest low-fare airlines - with 6,000 friendly, professional Crew Members and operating over 500 flights a day to more than 40 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, the world's busiest airport by passenger volume, where it is the second largest carrier. AirTran Airways, a subsidiary of AirTran Holdings (NYSE: AAI), is the world's largest operator of the Boeing 717 and has America's youngest all-Boeing fleet. The airline recently added the Boeing 737-700 aircraft, one of the most fuel efficient and environmentally friendly aircraft flying today, to its fleet and looks to begin outfitting its planes with XM Satellite Radio this fall. For reservations or more information,visit http://www.airtran.com (America Online Keyword: AirTran).
Last edited:
75M
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- May 25, 2004
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Doosh,
Although ATA and FL have agreed in principal on a course of action, the outcome will be decided by the BK courts after considering what is best for the creditors. This decision must consider any other offers made for all or part of the airline (i.e., AWA's potential offer for the whole airline).
Nothing is decided yet.
Although ATA and FL have agreed in principal on a course of action, the outcome will be decided by the BK courts after considering what is best for the creditors. This decision must consider any other offers made for all or part of the airline (i.e., AWA's potential offer for the whole airline).
Nothing is decided yet.
freightdogfred
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