- Aug 20, 2002
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ATA Could Run Out of Cash in Early 2005. If ATA collapses, it could be a bonanza for SWA since ATA is big in MDW.
Ata Running Out Of Cash
- Thread starter ngneer
- Start date
It would also be a bonanza for American and could keep UAL in business. ATA at Midway has reduced the fare premium at ORD in high fare markets such as LGA, EWR, BOS, PHL, DCA.
Kev3188
Veteran
SWA could expand in MDW and NW is positioned in IND. I think there is enough capacity in Chicago to cover the loss of ATA, but not in Indianapolis. I hope ATA hangs on, but even they are making their situation seem extremely doubtful.
From the looks of it, ATA is in deep, deep water. NW really made a smart move jumping into Indy. I just wonder if the guy that owns the majority of ATA would allow them to go to Chap. 11 and risk losing control of the airline he founded. Of course with only $150 million in cash, he might not have a choice.
OP
- Aug 20, 2002
- 244
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- Thread Starter
- #6
Deep water indeed: ATA Holdings could be headed for bankruptcy. And, besides ATA struggling, Southeast Airlines Cuts 10 Flights From Its Weekly Schedule.
I suspect another non-Southwest airline would be very interested in developing ATA's niche (MDW-BOS/LGA/EWR/PHL/DCA). I could see AirTran, jetBlue, or maybe even America West looking to acquire ATA's MDW facilities (maybe even aircraft for AirTran)... Maybe even Spirit, since they have a small operation at ORD, and more importantly, has 90 Airbuses coming... This seemed to work well for the original Midway... Should be interesting...
Well, seems like the hammer is falling. You know Mikelson will do whatever it takes to remain in control. If that means going back to a charter operation, so be it. The question is: who acquires the assets? Airtran? America West? Spirit? Mesa? Allegiant?....ok I'm kidding about Allegiant. Perhaps just let ATA "go away" at MDW and let everyone else there get healthy.
http://www.chicagobusiness.com/cgi-bin/news.pl?id=13645
http://www.chicagobusiness.com/cgi-bin/news.pl?id=13645
I think it would be a great opportunity for Alaska or Frontier as well. Though I believe F9 is being very careful with the cash it has left and cannot afford to be much more agressive. It would be interesting to see Alaska get a prime hub in the midwest. This is all my speculation, though, and I have seen no interest from either of these carriers.
jimntx said:
jimntx,
JetBlue does not have the aircraft to take on such a big challenge in MDW. SWA is receiving lots of new a/c this year, so maybe they have a thing up their sleeve or two?
LiveInAHotel said:
Even though JetBlue does not currently fly Boeing a/c, ATA is trying to get rid of 30 737-800s. For an opportunity, JB might be interested in temporarily "soiling" their fleet with Boeing product. Also, unfortunately, there may be a number of US Airways Airbii available soon.
I think lack of hardware would be one of JB's lesser problems in this situation.
Well ATA seems to be a sinking ship but I am not at all surprised at this. First of all ATA don't seem to have a solid business plan in place like WN,FL and B6 they were trying all sorts of things to survive and generate profits such as unsuccessfully trying to get into the transcon market from SFO to EWR and God knows what else. They want a business class and they want to fly Europe. This airline really needs better managers right now to make things better because even though they have low costs they are the weakest LCC out there and something is not right when you can't make money when your costs are low.
Could it be that ATA might go back to solid charter operation? ATA and Omni used to rely heavily on government contracts. There are not so many available any more and Omni is gulping up what ever they can since they have the aircrafts that can go long distance (DC10 & MD11). This is hurting ATA and their revenue.
HPearlyretiree
Veteran
- Nov 6, 2002
- 1,881
- 1,614
I really like ATA, all my flights have been great (except for the seat pitch!) and the crew treated this very frequent nonrev with class.
I would like to see the 757's go to HP, they really need the ETOPS so they can do HNL and SJU and increase seats on SJO and CUN.
I would like to see the 757's go to HP, they really need the ETOPS so they can do HNL and SJU and increase seats on SJO and CUN.
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