TAZ MAN
Well-known member
- Joined
- Jan 17, 2005
- Posts
- 271
I was wondering why someone wasn't stepping up to the plate. Here might be a little hope.
ATA seeking buyer for its Chicago Express line
By Ted Evanoff
[email protected]
February 2, 2005
Boston investor Jack E. Robinson bid only $37,700 for Chicago Express, but right now he has the only offer to buy the 600- employee commuter line from bankrupt ATA Airlines.
Indianapolis-based ATA confirmed Tuesday it will try to find a buyer for Chicago Express rather than close the line on March 28.
Robinson, a former Eastern Airlines executive who failed in a 2000 bid to unseat Sen. Edward Kennedy, D-Mass., said Chicago Express' new Indiana flights would continue if he buys the commuter line.
ATA was ready to shut down the little airline, but Robinson insisted he wants it, and on Monday ATA's lawyers told him it would be put up for sale.
"We will entertain offers from other companies," said Roxanne Butler, ATA investor relations specialist, on Tuesday.
ATA had bought Chicago Express in 1999 to feed Midwestern passengers to its newly expanded hub at Chicago Midway. That expansion in hand with the lease acquisition of 49 new jet airliners ultimately led ATA into bankruptcy.
ATA in January set out to develop a hub in Indianapolis with 54 daily flights.
ATA redeployed a fleet of jets from Chicago to Indianapolis and brought in Chicago Express' 34-seat turboprops to feed passengers to the new hub from Evansville, Fort Wayne, South Bend and eventually Gary.
But last week ATA abruptly canceled the hub, saying it was unprofitable in the face of fare wars with larger rivals.
Robinson said he believes he can make a profit with Chicago Express.
"Even if ATA cannot afford to compete out of Indianapolis, we could afford to compete with turboprops," he said.
"Big airlines think like big airlines. The best-run regional airlines are independently run and operated."
Robinson said the focus would remain on hauling travelers to Chicago Midway from larger Midwest metropolitan areas.
Under his plan, Chicago Express would borrow $85 million from bankers to finance the addition of 30 Saab 340 and Saab 2000 turboprop airplanes over the next year, Robinson said.
Robinson heads NatTel LLC of Stamford, Conn., which bid $37,700 for Chicago Express in December, figuring that would cover the legal fees associated with transferring ownership.
ATA had rejected the bid in December, but a bankruptcy court in Indianapolis is scheduled to consider the NatTel offer again Feb. 14.
ATA seeking buyer for its Chicago Express line
By Ted Evanoff
[email protected]
February 2, 2005
Boston investor Jack E. Robinson bid only $37,700 for Chicago Express, but right now he has the only offer to buy the 600- employee commuter line from bankrupt ATA Airlines.
Indianapolis-based ATA confirmed Tuesday it will try to find a buyer for Chicago Express rather than close the line on March 28.
Robinson, a former Eastern Airlines executive who failed in a 2000 bid to unseat Sen. Edward Kennedy, D-Mass., said Chicago Express' new Indiana flights would continue if he buys the commuter line.
ATA was ready to shut down the little airline, but Robinson insisted he wants it, and on Monday ATA's lawyers told him it would be put up for sale.
"We will entertain offers from other companies," said Roxanne Butler, ATA investor relations specialist, on Tuesday.
ATA had bought Chicago Express in 1999 to feed Midwestern passengers to its newly expanded hub at Chicago Midway. That expansion in hand with the lease acquisition of 49 new jet airliners ultimately led ATA into bankruptcy.
ATA in January set out to develop a hub in Indianapolis with 54 daily flights.
ATA redeployed a fleet of jets from Chicago to Indianapolis and brought in Chicago Express' 34-seat turboprops to feed passengers to the new hub from Evansville, Fort Wayne, South Bend and eventually Gary.
But last week ATA abruptly canceled the hub, saying it was unprofitable in the face of fare wars with larger rivals.
Robinson said he believes he can make a profit with Chicago Express.
"Even if ATA cannot afford to compete out of Indianapolis, we could afford to compete with turboprops," he said.
"Big airlines think like big airlines. The best-run regional airlines are independently run and operated."
Robinson said the focus would remain on hauling travelers to Chicago Midway from larger Midwest metropolitan areas.
Under his plan, Chicago Express would borrow $85 million from bankers to finance the addition of 30 Saab 340 and Saab 2000 turboprop airplanes over the next year, Robinson said.
Robinson heads NatTel LLC of Stamford, Conn., which bid $37,700 for Chicago Express in December, figuring that would cover the legal fees associated with transferring ownership.
ATA had rejected the bid in December, but a bankruptcy court in Indianapolis is scheduled to consider the NatTel offer again Feb. 14.
