lowecur
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Joe Leonard and other Airtran officials are visiting MDW today to inspect the 14 gates. They have layed out a detailed plan that neither LUV nor AWA has bothered to implement, and feel very confident that they will receive the needed blessing of City Officials to convince the BK judge to rule in it's favor.
This does not look like it will turn into the bidding war that George wanted, and he may be stuck with the $87M as the only viable cash bid. Nothing has been heard from Jetblue, other than they may put in a bid for some gates and slots at LGA. However, I wouldn't rule them out just yet as bids are not due until the 23rd of the month. They have 23 new a/c coming on board in 2005, and 35 in 2006. Without a Chicago focus or a UAIR chapt 7, they will have a very difficult time finding a place to put these a/c.
AirTran CEO says ATA deal close
Officials from both airlines at Midway today
By Paul Merrion
November 12, 2004
AirTran Airways hopes to land a decision "soon" from Chicago officials on its bid to assume 14 gate leases at Midway Airport as part of the bankruptcy restructuring of ATA Airlines, Midway's largest carrier.
"We think we'll know pretty soon," says Joseph Leonard, chairman and CEO of parent AirTran Holdings Inc. "We've given them a lot more than a high level, this is what we think we can do" analysis. "We've showed the city a definitive plan of how we'd build this" over time.
A Chicago Department of Aviation spokeswoman says there have been talks with several airlines that expressed interest in ATA's Midway gates after the discount carrier entered bankruptcy last month and announced plans to exit the Chicago market. While declining to comment on when a decision is expected, she said the city is negotiating only with AirTran.
Because the city owns the gates, it has to approve the transfer of a gate lease to another party. The transaction also needs bankruptcy court approval.
Southwest Airlines, which already has 19 gates at Midway, has said it may want to acquire seven more, and America West Airlines also has expressed interest. A bankruptcy court hearing Monday is expected to establish ground rules and a timetable for bids rivaling AirTran's proposal.
AirTran started the process when it reached an agreement last month to pay Indianapolis-based parent ATA Holdings Inc. $87.5 million for gates at Midway, New York and Los Angeles. In addition, the two airlines will cooperate on marketing and ATA will operate the Chicago routes for AirTran while AirTran gradually brings in its own planes.
Mr. Leonard says the deal would create an "instant hub" in Chicago and "for the first time ever, a national presence" for Florida-based AirTran, whose main hub now is Atlanta. "Those are not bad places to be in if you're in the airline business."
Mr. Leonard and other AirTran officials are visiting Midway Airport today, inspecting the 14 gates they definitely want, as well as other facilities they may or may not acquire from ATA.
"We don't really need" ATA's Chicago reservations center, which employs about 300 at an office building near O'Hare International Airport, says Mr. Leonard. "It's our understanding ATA will continue to operate that." An ATA spokeswoman could not confirm whether that decision has been made. However, AirTran may decide to acquire ATA's hangar space at Midway in order to maintain the planes it plans on bringing to Chicago. "We clearly have to hire mechanics," says Mr. Leonard. "With the weather in Chicago, we probably need hangars."
This does not look like it will turn into the bidding war that George wanted, and he may be stuck with the $87M as the only viable cash bid. Nothing has been heard from Jetblue, other than they may put in a bid for some gates and slots at LGA. However, I wouldn't rule them out just yet as bids are not due until the 23rd of the month. They have 23 new a/c coming on board in 2005, and 35 in 2006. Without a Chicago focus or a UAIR chapt 7, they will have a very difficult time finding a place to put these a/c.
AirTran CEO says ATA deal close
Officials from both airlines at Midway today
By Paul Merrion
November 12, 2004
AirTran Airways hopes to land a decision "soon" from Chicago officials on its bid to assume 14 gate leases at Midway Airport as part of the bankruptcy restructuring of ATA Airlines, Midway's largest carrier.
"We think we'll know pretty soon," says Joseph Leonard, chairman and CEO of parent AirTran Holdings Inc. "We've given them a lot more than a high level, this is what we think we can do" analysis. "We've showed the city a definitive plan of how we'd build this" over time.
A Chicago Department of Aviation spokeswoman says there have been talks with several airlines that expressed interest in ATA's Midway gates after the discount carrier entered bankruptcy last month and announced plans to exit the Chicago market. While declining to comment on when a decision is expected, she said the city is negotiating only with AirTran.
Because the city owns the gates, it has to approve the transfer of a gate lease to another party. The transaction also needs bankruptcy court approval.
Southwest Airlines, which already has 19 gates at Midway, has said it may want to acquire seven more, and America West Airlines also has expressed interest. A bankruptcy court hearing Monday is expected to establish ground rules and a timetable for bids rivaling AirTran's proposal.
AirTran started the process when it reached an agreement last month to pay Indianapolis-based parent ATA Holdings Inc. $87.5 million for gates at Midway, New York and Los Angeles. In addition, the two airlines will cooperate on marketing and ATA will operate the Chicago routes for AirTran while AirTran gradually brings in its own planes.
Mr. Leonard says the deal would create an "instant hub" in Chicago and "for the first time ever, a national presence" for Florida-based AirTran, whose main hub now is Atlanta. "Those are not bad places to be in if you're in the airline business."
Mr. Leonard and other AirTran officials are visiting Midway Airport today, inspecting the 14 gates they definitely want, as well as other facilities they may or may not acquire from ATA.
"We don't really need" ATA's Chicago reservations center, which employs about 300 at an office building near O'Hare International Airport, says Mr. Leonard. "It's our understanding ATA will continue to operate that." An ATA spokeswoman could not confirm whether that decision has been made. However, AirTran may decide to acquire ATA's hangar space at Midway in order to maintain the planes it plans on bringing to Chicago. "We clearly have to hire mechanics," says Mr. Leonard. "With the weather in Chicago, we probably need hangars."