ATA may sell off passenger ops..found on another site

[RedDogC130]

http://www.indystar.com/apps/pbcs.dll/article?AID=/20080130/BUSINESS/801300418



Found on another forum

 

[Auburn MD Flyer]

Interesting development in this time of M & A activity. 12 of 28 a/c are used for passenger flights, per the article. I wonder how SWA would get their passengers to Hawaii? Additionally, would SWA be reimbursed for their "investment" in ATA???

 

[CaptSeth]

I wish Evanoff had used my quotes about scope and fragmentation as well as job protection, but whatever.

Too much uncertainty, and too many possible combinations. We don't even know what to prepare for, exactly, so we are struggling to prepare for any of the potential outcomes.

 

[ATA For Now!]

WN did get reimbursed for their "investment"....they sold it to MaitlinPatterson.

 

[fly4surf]

What would be the going rate for this chunk of business?

 

[atafan]

What would be the going rate for this chunk of business?

Ask Gary Kelly what he's planning to pay for ATA Airlines.

 

[CaptSeth]

There are more than one potential suitors, apparently. In the end, the question will be whether or not SW is willing to let go of Hawaii.

 

[alpine1989]

There are more than one potential suitors, apparently. In the end, the question will be whether or not SW is willing to let go of Hawaii.

Alaska has cash on hand, same fleet type and a desire to grow the Hawaii operation.

Aloha can't pull this off without some serious financial backing.

Good thing ATA has the Dubai cargo thing going for them ???

 

[atafan]

Good thing ATA has the Dubai cargo thing going for them ???

I think what you fail to see is the big picture.

In my opinion, SWA with Matlin Patterson, has been trimming ATA down to the bare necessities so that the airline can be sold off to SWA with minimum liability/cost. SWA gets scheduled worldwide authority much cheaper and with much less liability than buying an Alaska or Aloha. Matlin Patterson gets a chunk of change and all the charter ops goes to World and is sold off at an even larger profit.

SWA will blow everyone away on how masterfully they play this. I might get screwed, again, but I have to appreciate a well played game no matter the results.

and another thing....

Why would Alaska want to be bought by anyone? Alaska is a unique airline and I hope they always stay just the way they are.

 

[HalinTexas]

First, let's clarify a few things.

One, it's a newspaper article. They never get it completely right.

Yes, ATA scheduled service is for sale. We can't get a straight answer as to what that is. We have 12 B737-800's and 10 B757's. Both are used in scheduled service, but not exclusively. You can't make it to HI out of PHX and LAS with a B737 and make money.

ATA does not do exclusive cargo flying, so the A330's will not be on ATA's certificate. They'll probably be spread between World and VarigLog.

Aloha has the money. UAL owns about 20% of the company and Yucaipa Cos. is the airline's backer. They'll get it if they need/want it, and they better do something or Hawaiian (and others) is gonna bury them with their Bus orders. Not to mention all the inter-island competition. (Go Away, Go!)

ATA has a pretty well established reputation in HI. As good or better than HA or AQ. Can't imagine this operation just disappearing, and if WN doesn't want it, then it's their loss. World-wide authority with the B757 and B737 and experienced crews is nothing to sniff at.

According to Mgt. (yeah, I know) SS is for sale, but there are no "takers." No solid rumors as to whom it might be. It took AK 22 mos. to get B737 ETOPS to start their Hawaii service. AQ doesn't have that many planes to dedicate to a codeshare on any large scale. I would be it would be SWA as the buyer, but stranger things have happened.

If SWA wants to grow on any grand scale internationally, on short order, this is the best, cheapest way to do it. If you throw in NAA as part of the deal with their 5 B757's and 5 767's, then it's a formidable operation.

But what do I know.