Just wondering if anyone knows anything about ATA's Financial Situation? 4th Qtr earnings, $$ earned through the hoilday travel, etc . . . I know there is no crystal ball, just wondering about their stability............... Thanks
2Q and 3Q numbers are ugly - operating losses of around $25 million each, total book losses around $60 million for each of those quarters. They tell us we will be burning cash through the end of the year. Expected return to breakeven should be first quarter '03. Massive slash and burn cost cutting campaign to cut down fixed expense, big pilot hiring push to add marginal revenue by flying the airplanes more (it would appear that it should work - we added 41% capacity year over year and added 38% to passenger levels....so we seem to be able to fill up the seats we're putting out there).
I'm only a new-hire....but I think these folks will pull out of this pretty well. ATA has an excellent product and is well positioned to be a strong player in the "new world" of airlines. Our CASM is the lowest of any major, and the product is very good IMHO (and in the opinion of many business fliers I talked to when researching ATA as a career prospect). High-quality low fare service with Chicago as a primary hub is an excellent model I think. The military charter is a nice balance for that as well.
George is a very smart dude, and has made this thing profitable for most of its history. He also said, BTW, that the new contract for the pilots was "appropriate" and mentioned no thought of concessions.
I am extremely happy to be here....I hope it works out ( I also hope the L-10's stick around a while !!!).
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