AWA Bows Out

[mhermann596]

America West Declines Opportunity to Submit Bid for ATA Assets
Thursday December 9, 3:00 pm ET

PHOENIX, Dec. 9 /PRNewswire-FirstCall/ -- America West Holdings Corporation (NYSE: AWA - News), parent company of America West Airlines, Inc., today announced it does not plan to submit a bid to the U.S. Bankruptcy Court to purchase ATA Holdings Corp. (OTC: ATAHQ - News). America West had previously announced it was considering acquiring ATA through that airline's Chapter 11 restructuring process.

America West Chairman and Chief Executive Officer Doug Parker said, "We have stated from the beginning of this process that we would not proceed with any transaction that would put undue risk on America West's employees, customers or stockholders. While we believe there is some value in a combined America West/ATA operation, we do not believe the potential value justifies the anticipated cost.

"Our interest in ATA encompassed acquiring the entire company as opposed to only a few select assets, which meant we needed most of the aircraft and employees to stay with the company. During this process we found we were able to attract sufficient capital to support a competitive bid and we are grateful to our partners for their offers of support. We particularly appreciate the support we received from the employees of ATA. We are hopeful that whoever ends up owning ATA will recognize the value of this dedicated and experienced workforce. Unfortunately, we were unable to come to acceptable lease terms on enough aircraft with ATA's existing aircraft lessors.

"We feel very good about the decision to refrain from this bidding process. As the nation's second largest low cost carrier we are well positioned for long-term success in a rapidly evolving airline environment. Because our current aircraft orders satisfy our near-term growth plans, we are not compelled to stretch to find places to fly. We feel confident there will be future growth and acquisition opportunities for America West as our industry evolves. While we have chosen to pass on this particular transaction, we look forward to playing a role in the continued consolidation of the airline industry."

America West Airlines is the nation's second largest low cost airline and the only carrier formed since deregulation to achieve major airline status. America West's 13,000 employees serve nearly 55,000 customers a day in 96 destinations in the U.S., Canada, Mexico and Costa Rica.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the future of the airline industry, growth plans and our prospects for success. These statements involve risks and uncertainties that could cause our actual results and financial position to differ materially from these statements, including, but are not limited to, the duration and extent of the current soft economic conditions; the impact of global instability including the continuing impact of the continued military presence in Iraq and Afghanistan and the terrorist attacks of Sept. 11, 2001 and the potential impact of future hostilities, terrorist attacks, infectious disease outbreaks or other global events; limitations on our ability to obtain additional financing due to high levels of debt and the financial and other covenants in our debt instruments; changes in federal and state laws and regulations; changes in prevailing interest rates and the availability of and terms of financing to fund our business; the ability to attract and retain qualified personnel; the cyclical nature of the airline industry; competitive practices in the industry; the impact of changes in fuel prices; relations with unionized employees generally and the impact and outcome of the labor negotiations and other factors described from time to time in our publicly available SEC reports. We caution you that these risks may not be exhaustive. We operate in a continually changing business environment, and new risks emerge from time to time. We undertake no obligation to publicly update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.

 

[Cactus73]

I really hope that the ATA employees are treated fairly by Air Tran or Southwest.

My prayers go out to all of you and your families.

Hopefully things will work out for the better.

Good luck guys, hold your heads high.

 

[grog_sit_reserv]

I wonder if Doug and the gang are waiting for an Airways blue light special?

Good luck to all those at ATA, I always enjoyed flying on you. I'm sorry it has come down to this; hang in there.

 

[Daedalus]

America West Chairman and Chief Executive Officer Doug Parker said, "We have stated from the beginning of this process that we would not proceed with any transaction that would put undue risk on America West's employees, customers or stockholders. While we believe there is some value in a combined America West/ATA operation, we do not believe the potential value justifies the anticipated cost.

Will this turn out to be AirTran's Waterloo?

 

[CMonBoard]

While it hasn't been stated publicly, I would like to think that AirTran would need qualified crews for the 100 737's they have on order and what better place to get them than from ATA. Preferential interviews are at least something, isn't it? I know it's not the best solution though.

Is there any precedence within the FAA to allow some sort of transition from one carrier to another and have shorter classes?

 

[UM#1]

Airtran is holding a "Job Fair" for ATA pilots next week. I would assume it's a - give them your resume and chat for a few minutes...and then a few might get a call....

 

[ATA717Pilot]

Nice move by Air Tran giving a whole 4-days heads-up notice and only one day for ATA pilots to be "considered" as future FL aviators.

Pretty transparent action on Air Tran's part which speaks volumes re: how ATA Professionals are viewed as potential assets to the organization.

ATA Furlough Committee Bulletin - Thursday, December 9, 2004
FROM: XXXXXXXXXX, Furlough Committee Chairman
TO: All ATA Flight Crew Members

AirTran Airlines has announced it will hold a hiring fair for ATA
pilots
this coming Monday, December 13, at Midway Airport. We believe the
interviews are being conducted at the MDW crew room, although this has
not yet been confirmed. Interviews will be held from 9:00am to 12:00pm
and from 2:00pm to 6:00pm on Monday. For a review on how AirTran
conducts some of its interviews, check out the following link:

http://www.willflyforfood.cc/Airtran.htm

We encourage everyone to polish up those resumes and take advantage of
this opportunity. The committee will continue to provide information on
other interview possibilities as we learn about them. Good luck!

 

[IAHERJ]

Am I the only one who finds the timing of AWA's announcement a bit fishy? Any chance this was posturing for a better lease deal on existing aircraft in ATA's fleet with the possibility of a last minute deal? They have until tomorrow.

I did notice Parker's tone towards this deal was a bit of a shot at AirTran. It's almost as if he is trying to start a labor problem by firing up ATA employees against AirTran or SWA; neither of which has stated that it will take pilots with a deal. If his deal was so good, lets hear it. All we've heard from AWA publicly from the get go was repeated rhetoric about purchasing the entire company thus motivating the ATA employees to endorse the AWA "deal", whatever it was supposed to be. It is a business deal, period. For Parker to act as if his deal would have been some sort of humanitarian releif package for all ATA employees was a cheap shot in my eyes. I would have been happy to see them purchase the entire company thus keeping all employees working. I have a friend there with a newborn child. But if you're not serious about the acquisition, don't through pot shots at the other carriers.

IAHERJ

 

[CMonBoard]

Hey TZ, F9 is Frontier. I presume you mean FL. As opposed to WN.

 

[FarginDooshbahg]

All we've heard from AWA publicly from the get go was repeated rhetoric about purchasing the entire company thus motivating the ATA employees to endorse the AWA "deal", whatever it was supposed to be. It is a business deal, period. For Parker to act as if his deal would have been some sort of humanitarian releif package for all ATA employees was a cheap shot in my eyes..

IAHERJ

It sure seemed to work. All you hear on this board is how ATA pilots are/were "hoping" for the AWA deal to go through because they believed this would somehow "preserve" not only their jobs but their seniority, their seats, their aircraft, their whole world. Now, all you see in venom in their posts directed at the "other" airline. I guess they forget it was their own company that put them in the position they now find themselves.

Oh yea, and ATA717Pilot. You're right. If you don't make this "one day" group interview that you were given "4 days" notice of, you have ZERO chance of EVER applying to Air Tran again. GMAFB...

I hope everything works out the best way possible for EVERYONE involved. But at the same time, it is very easy when you are the "victim" to point fingers at all those who are to blame. Just make sure you know who your enemy is before pulling the trigger. After you shoot, it's too late to change your mind.

 

[IAHERJ]

By the way, I don't believe this news means the AAI deal is going to go through as advertised. There are many other factors that will be considered next week and several hours left in the bidding process. We might all be surprised at the outcome. I just hope ATA crews suffer as little as possible.

IAHERJ

 

[flyhard]

Hey Dooshbag,

Here you go again with your great attitude. There is nothing wrong with us, ATA pilots, hoping for something. And as far as pointing fingers and venom in the posts, I don't think I am seeing it. Yes we have a couple of hot heads spouting off about things, which is common when people's lives are hanging on a fuking court decision. Thanks for great words of encouragement though.

 

[FarginDooshbahg]

flyhard,

You are right about the attitude. I guess being a "Dooshbahg" carries with it a certain latent cynicism and I sometimes forget that I am just another pilot, too.

My point is that the Air Tran pilots are not the bad guys, here. That's all. And I do wish you all (and I mean ALL) good luck. This is a tough business that most likely will get every one of us in the end. Those of us who choose to ride it out.

 

[ATA717Pilot]

Oh yea, and ATA717Pilot. You're right. If you don't make this "one day" group interview that you were given "4 days" notice of, you have ZERO chance of EVER applying to Air Tran again. GMAFB...

I think you are missing the point of the posting....I never said it would prevent me from applying to FL. The point is that the timing and haphazard way that this "Job Fair" was presented speaks volumes about how FL views the aquisition of TZ Pilots.

If FL had a sincere interest in taking advantage of the qualified labor pool that would be available here, they would have gone to great lengths to publicize the event as well as covering multiple days to allow for the greatest number of TZ pilots to take advantage (wow, talk about a sentence run-on).

This one-day "Job Fair" at the last moment with very little advance notice is nothing more than a way for FL to appease Daily, the terms of the agreement, etc. so that they can claim a "good faith" effort was made to the exsisting employees.

A token number will be hired as a result.

I guess I can even see FL's POV, I'm sure they have no interest in bringing on a large group of possibly disgruntled aviators with strong ALPA leanings...hell, I wouldn't want us either for just that reason. I'm sure management fears the loss of control over the pilot group should ALPA make a foothold there.

Noone here..with the exception of a few in the minority blames the FL pilots in any way.

 

[Land Green]

I am stupid and don't quite understand what is going on!!!!!!

I thought ATA was owned by a single person since the beginning. How can this person's life-long motivation and occupation simply come to an end so quickly. What does AirTran's involvement mean? Can ATA be resurrected or restructured, or is this it. Is AirTran just holding the reigns for a while until the brass at ATA figures this one out? Is it possible that the whole thing can just slide over to AirTran, ie. like a merger or takeover. What happens to all the planes, the infrastructure, the stores, the mx, and most importantly the people? Why can't ATA file for protection like some of the "big-boys". It seems USAir and UAL are so far away from this happening, why does ATA have to take this?

LG

 

[flyhard]

Land Green,

I think it comes down to three things- greed, ego, stupidity, not necessarily in that order. ATA did not file like the "big boys" mainly because GM (CEO) does not want to give up control of the company. If an outside investor wanted to pump money into ATA, it would come with a price of control in some way. Personally I think GM will sell the pieces, pocket the cash, and keep a small charter airline to play with. Who knows with WN entering the game and AWA saying they are out it could wind up a number of different ways. It would be a lot more fun to watch on the outside, that is for sure.

 

[mhermann596]

The union response.

Release #04-04
December 9, 2004

ALPA ATA Pilots Blast Management, Lessors for Not Cooperating with America West’s Plan to Save ATA Jobs

Capt. Erik Engdahl, chairman of the ATA Airlines unit of the Air Line Pilots Association, made this statement today following America West Airlines’ announcement that it was canceling plans to make a bid for ATA’s assets in U.S Bankruptcy Court. Capt. Engdahl, a resident of Brown County, IN, is a Boeing 757 pilot based on the west coast.

“We’re deeply disappointed that America West has decided not to acquire ATA. We have believed from the beginning that the America West plan was the best deal available to preserve the jobs of ATA’s employees. Today’s decision increases the likelihood that thousands of ATA employees – including several hundred pilots and flight engineers – will be out of work within six months.

“After several intense weeks of work with America West senior management and our pilot counterparts there, we were ready to announce a plan today for a seamless integration of the ATA and America West flight crews. We had completed final language for this plan late Wednesday night, and were ready to take it to our members for ratification. While we are disappointed, our next step is to review the remaining bankruptcy bids and continue to press for a plan that protects as many employees as possible while making ATA a viable competitor.

“We’re furious that ATA’s aircraft lessors apparently refused to cooperate with America West, even though the AWA plan was the best one to keep all of ATA’s airplanes flying. And we’re outraged that ATA didn’t do more to save its own employees by helping facilitate the America West plan. It appears that the highest levels of ATA’s senior management are focused more on their personal job security than the welfare of their fellow workers. We truly believed that ATA was ‘an honestly different airline’ when it came to taking care of people, but now we know better.

“Unless a White Knight materializes tomorrow, it’s going to be a bitter Christmas at ATA.
But our focus remains the same as it was before – to preserve the jobs of as many ATA flight crew members as possible. We have a lot to offer and we are open to discussions with anyone who appreciates our value.”

The Air Line Pilots Association is the bargaining agent for the 1,100 pilots and flight engineers at ATA. ALPA is the world’s oldest and largest pilot union, representing 64,000 pilots at 43 airlines in the U.S. and Canada. Visit the ALPA Web site at http://www.alpa.org.

 

[DCitrus9]

ATA717, I think you need to simma' down just a touch. You are being way too negative over a chance for pref. interviews. Initially there were many b!tching because they felt FL was not going to hire them. Now you're b!tching because they are hiring? I think you're just bitter, rightfully so, but direct that anger in either the appropriate direction or in more constructive ways.
To debate a few of your points:
Only four days notice on the job fair; well, we're a bit crunched for time ourselves. We don't even know if we will get the gates, yet we're offering pref interviews! On top of that, we will begin flying MDW in one month (assuming it goes through) so we need to start hiring NOW. If you would prefer, we can interview you next month. Would that be too soon? Just remember, that will put 25-50 people in front of you in seniority. Your call.
Better publicity; The information seems to have come directly from your union. I would guess they know the best way to contact the pilot group. What better way could we have advertised it? Would a personal phone call been more to your satisfaction?
Token # hired; This is just in poor spirit. You have no clue how many we will hire, or even intend to hire. The fact is many ATA pilots have interviewed already, with mixed success. There is definitely not a "limit" on how many we will hire, but there is an good attitude requirement that you may want to consider. At least put on your happy face and have a reason you want to work here. Just a hint "You guys are buying us, and I guess I gotta work somewhere" will not give favorable results, but it has been tried.

 

[George Zip]

ATA717, I think you need to simma' down just a touch. You are being way too negative over a chance for pref. interviews. Initially there were many b!tching because they felt FL was not going to hire them. Now you're b!tching because they are hiring? I think you're just bitter, rightfully so, but direct that anger in either the appropriate direction or in more constructive ways.
To debate a few of your points:
Only four days notice on the job fair; well, we're a bit crunched for time ourselves. We don't even know if we will get the gates, yet we're offering pref interviews! On top of that, we will begin flying MDW in one month (assuming it goes through) so we need to start hiring NOW. If you would prefer, we can interview you next month. Would that be too soon? Just remember, that will put 25-50 people in front of you in seniority. Your call.
Better publicity; The information seems to have come directly from your union. I would guess they know the best way to contact the pilot group. What better way could we have advertised it? Would a personal phone call been more to your satisfaction?
Token # hired; This is just in poor spirit. You have no clue how many we will hire, or even intend to hire. The fact is many ATA pilots have interviewed already, with mixed success. There is definitely not a "limit" on how many we will hire, but there is an good attitude requirement that you may want to consider. At least put on your happy face and have a reason you want to work here. Just a hint "You guys are buying us, and I guess I gotta work somewhere" will not give favorable results, but it has been tried.

I think the way this happened was that job fairs were being conducted for CSR's at MDW, and a union rep went to ask about when the pilot's interview fair might be. The flustered answer is what materialized into this interview day. If that chance encounter hadn't happened - well you know....

I have high respect for Citrus drivers - God knows I don't have any issue with you guys, but you surely can understand why you might hear a few gripes as to how this has come down.

My apologies if I have the events wrong.

 

[75M]

We’re furious that ATA’s aircraft lessors apparently refused to cooperate with America West, even though the AWA plan was the best one to keep all of ATA’s airplanes flying. And we’re outraged that ATA didn’t do more to save its own employees by helping facilitate the America West plan.

Anybody that knows EE, knows they don't want him furious or outraged. I hope next week brings better news for ATA.