AA717driver
A simpler time...
- Joined
- Mar 27, 2003
- Posts
- 4,908
Dear Employees and Investors:
On October 26, 2004, ATA announced a milestone for our company as we begin the transformation of ATA into a refocused, streamlined and profitable airline — an airline that is positioned to meet the needs of our customers today and for the future.
You all know the challenges that the airline industry is facing as well as I do. Excess capacity, extremely high fuel prices and declining fares have meant that all airlines, low-fare and legacy carriers alike, have to re-examine their business. Low cost carriers are growing their market share and continuing to achieve cost reductions, but this growth has also resulted in over capacity, intensifying the competition in the marketplace. At the same time, legacy carriers are taking aggressive steps to lower their costs. Not only are the carriers suffering, but customers are starting to wonder if the airlines of today will be here tomorrow. I’m here today to tell you that ATA will be here tomorrow, and the next day, and for at least another 30 years. Here is how we can assure our future for our customers, employees and the cities we serve.
On October 26, ATA Holdings Corp. filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana. That sounds like a mouthful, but the important point is that this reorganization will allow us to restructure our debt and to continue to serve our customers, maintain our full flight schedule and operations. As a result, we can assure our customers that every ATA ticket will be honored.
In conjunction with the filing, ATA has reached an agreement with AirTran Airways, Inc. in which AirTran will assume ATA's flight operations, gates lease, and routes in Chicago Midway Airport as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport. The agreement, which is subject to approval by the city of Chicago, will take effect in the coming months.
By re-structuring and partnering with AirTran, we will re-create ATA as a formidable low-cost competitor, capable of winning in today’s airline industry for our customers, employees, creditors and other stakeholders. Together, ATA and AirTran intend to establish co-marketing programs and code share agreements across both carriers' flight networks. There is also a plan for a transition agreement for AirTran to outsource to ATA servicing of Chicago flights over a specified transitional period. The transition arrangements with AirTran will allow ATA a gradual, measured exit from Chicago, as well as provide ATA time and flexibility to develop and execute its reorganization plan and to optimize our fleet and plane sizes.
We remain committed to serving our Midway customers during this transition and our arrangement with AirTran allows us to have significant support from one of the strongest low cost carriers. ATA passengers holding existing reservations for flights to and from Chicago Midway will be serviced seamlessly under their originally issued tickets, without the need for re-booking flights with other carriers.
ATA, while reorganizing and executing its arrangement with AirTran, will continue operating business as usual. As we transform, we will maintain our focus on serving customers with one of the youngest, most fuel-efficient fleets and providing value-based everyday, low fares and service that makes the travel experience easier and more affordable for all our business and leisure travelers. We stand by our customer commitments, honoring tickets, upholding flight schedules, in-flight services and frequent flyer rewards programs. ATA will also continue to improve our services, such as retrofitting planes for business class service, which we expect to complete by early 2005.
Just as importantly, we are committed to Indianapolis, which will continue to serve as ATA’s headquarters location and primary hub. Indianapolis has been a key source of our growth, and we will remain in the city we have called home since 1973.
Today marks a day of important changes for ATA that will seed the path to growth and prosperity. Through the combination of reorganizing and partnering ATA will continue to achieve greatness and serve our community, our employees and our passengers.
Thank you for your continued support and for flying with ATA.
Godspeed and best regards,
George Mikelsons
Chairman, President and CEO
ATA Airlines, Inc.
On October 26, 2004, ATA announced a milestone for our company as we begin the transformation of ATA into a refocused, streamlined and profitable airline — an airline that is positioned to meet the needs of our customers today and for the future.
You all know the challenges that the airline industry is facing as well as I do. Excess capacity, extremely high fuel prices and declining fares have meant that all airlines, low-fare and legacy carriers alike, have to re-examine their business. Low cost carriers are growing their market share and continuing to achieve cost reductions, but this growth has also resulted in over capacity, intensifying the competition in the marketplace. At the same time, legacy carriers are taking aggressive steps to lower their costs. Not only are the carriers suffering, but customers are starting to wonder if the airlines of today will be here tomorrow. I’m here today to tell you that ATA will be here tomorrow, and the next day, and for at least another 30 years. Here is how we can assure our future for our customers, employees and the cities we serve.
On October 26, ATA Holdings Corp. filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana. That sounds like a mouthful, but the important point is that this reorganization will allow us to restructure our debt and to continue to serve our customers, maintain our full flight schedule and operations. As a result, we can assure our customers that every ATA ticket will be honored.
In conjunction with the filing, ATA has reached an agreement with AirTran Airways, Inc. in which AirTran will assume ATA's flight operations, gates lease, and routes in Chicago Midway Airport as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport. The agreement, which is subject to approval by the city of Chicago, will take effect in the coming months.
By re-structuring and partnering with AirTran, we will re-create ATA as a formidable low-cost competitor, capable of winning in today’s airline industry for our customers, employees, creditors and other stakeholders. Together, ATA and AirTran intend to establish co-marketing programs and code share agreements across both carriers' flight networks. There is also a plan for a transition agreement for AirTran to outsource to ATA servicing of Chicago flights over a specified transitional period. The transition arrangements with AirTran will allow ATA a gradual, measured exit from Chicago, as well as provide ATA time and flexibility to develop and execute its reorganization plan and to optimize our fleet and plane sizes.
We remain committed to serving our Midway customers during this transition and our arrangement with AirTran allows us to have significant support from one of the strongest low cost carriers. ATA passengers holding existing reservations for flights to and from Chicago Midway will be serviced seamlessly under their originally issued tickets, without the need for re-booking flights with other carriers.
ATA, while reorganizing and executing its arrangement with AirTran, will continue operating business as usual. As we transform, we will maintain our focus on serving customers with one of the youngest, most fuel-efficient fleets and providing value-based everyday, low fares and service that makes the travel experience easier and more affordable for all our business and leisure travelers. We stand by our customer commitments, honoring tickets, upholding flight schedules, in-flight services and frequent flyer rewards programs. ATA will also continue to improve our services, such as retrofitting planes for business class service, which we expect to complete by early 2005.
Just as importantly, we are committed to Indianapolis, which will continue to serve as ATA’s headquarters location and primary hub. Indianapolis has been a key source of our growth, and we will remain in the city we have called home since 1973.
Today marks a day of important changes for ATA that will seed the path to growth and prosperity. Through the combination of reorganizing and partnering ATA will continue to achieve greatness and serve our community, our employees and our passengers.
Thank you for your continued support and for flying with ATA.
Godspeed and best regards,
George Mikelsons
Chairman, President and CEO
ATA Airlines, Inc.
