FlyingCricket
Member
- Joined
- Nov 1, 2004
- Posts
- 21
This doesn't sound like anything new to me. However, it was released today and I thought there would probably be a few people interested in the latest news on this story.
AirTran Airways Announces Definitive Agreement with ATA Airlines
Tuesday November 16, 4:19 pm ET
ORLANDO, Fla., Nov. 16 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), announced today that the airline has entered into a definitive agreement with ATA Holdings Corp. (OTC Bulletin Board: ATAH.PK - News) to assume the operation of 14 gates at Chicago's Midway Airport. The agreement also provides that AirTran Airways and ATA will enter into a code share and marketing agreement covering operations from Midway as well as other points on each airline's network. The parties expect the closing will occur on or before December 23, 2004. ATA Holdings and its subsidiary, ATA Airlines, are currently operating as debtors-in-possession in Chapter 11 cases pending in Indianapolis.
The purchase price is $89,955,000, subject to adjustment. The purchase price will be paid in installments. ATA has agreed to maintain its current flight service levels at Midway Airport until January 11, 2005, and, subject to certain contingencies, to make available to AirTran Airways up to twelve of ATA's 737-800 aircraft on a "wet lease" basis for varying periods of time through approximately June 4, 2005.
In addition, AirTran Airways will assume responsibility for certain passenger tickets previously sold by ATA for air travel to or from Midway Airport. The closing is subject to a number of conditions, including approvals by the Bankruptcy Court and the City of Chicago. The agreement provides for the payment to AirTran Airways of a termination fee if it is terminated under certain circumstances, including, among others, the transfer of one or more of the assets and leases related to ATA's Midway operations to a third party or the sale or merger of ATA with a third party.
AirTran Airways Announces Definitive Agreement with ATA Airlines
Tuesday November 16, 4:19 pm ET
ORLANDO, Fla., Nov. 16 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), announced today that the airline has entered into a definitive agreement with ATA Holdings Corp. (OTC Bulletin Board: ATAH.PK - News) to assume the operation of 14 gates at Chicago's Midway Airport. The agreement also provides that AirTran Airways and ATA will enter into a code share and marketing agreement covering operations from Midway as well as other points on each airline's network. The parties expect the closing will occur on or before December 23, 2004. ATA Holdings and its subsidiary, ATA Airlines, are currently operating as debtors-in-possession in Chapter 11 cases pending in Indianapolis.
The purchase price is $89,955,000, subject to adjustment. The purchase price will be paid in installments. ATA has agreed to maintain its current flight service levels at Midway Airport until January 11, 2005, and, subject to certain contingencies, to make available to AirTran Airways up to twelve of ATA's 737-800 aircraft on a "wet lease" basis for varying periods of time through approximately June 4, 2005.
In addition, AirTran Airways will assume responsibility for certain passenger tickets previously sold by ATA for air travel to or from Midway Airport. The closing is subject to a number of conditions, including approvals by the Bankruptcy Court and the City of Chicago. The agreement provides for the payment to AirTran Airways of a termination fee if it is terminated under certain circumstances, including, among others, the transfer of one or more of the assets and leases related to ATA's Midway operations to a third party or the sale or merger of ATA with a third party.
