Ata To End Service To Several Cities

MiAAmi

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Press Release Source: ATA Airlines, Inc


ATA Airlines Announces Upcoming Schedule Changes
Thursday October 13, 3:00 pm ET
Company makes strategic move to eliminate specific routes as part of ongoing business plan


INDIANAPOLIS, Oct. 13, 2005 (PRIMEZONE) -- As part of ATA's (ATA Airlines, Inc.) (Other OTC:ATAHQ.PK - News) efforts to create an even more efficient and cost-competitive operating structure, the Company announces it will be ending its service from Chicago-Midway to Boston on Oct. 28, 2005, Newark, N.J. on Oct. 29, 2005 and Minneapolis/St. Paul on Dec. 1, 2005, respectively. ATA will also suspend its launch of new service between Chicago-Midway and Miami and Sarasota, Fla. Service to these markets was scheduled to begin on Oct. 29, 2005.
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According to ATA Senior Vice President and Chief Commercial Officer Subodh Karnik, the decision to eliminate these routes is part of an ongoing effort to create a strategic business plan that best positions the Company for bankruptcy emergence. ``All airlines, including ATA, must continually evaluate the future profitability and viability of each route - based on passenger demand, competition, and cost inputs,'' said Karnik. ``Increased capacity, fluctuating demand and skyrocketing fuel prices created a financial reality we simply could not ignore. Ultimately, it is our responsibility to create an operating plan that leads to predictable long-term profitability and the enhanced financial stability of the Company.''

ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick agreed. ``These schedule changes will improve ATA's cash flow and put the Company on a better footing to attract an investment and emerge from Chapter 11.''

ATA is in the process of contacting customers affected by this announcement and is putting plans into place to assist those individuals holding tickets beyond the cancellation dates until Jan. 9, 2006, in booking alternative travel on other carriers. Those holding tickets for travel beyond Jan. 9, 2006 on the affected routes will be provided full refunds. All changes will be reflected in the Company's public timetable as of Oct. 16, 2005.

Approximately 100 employee positions are affected by the route restructuring. ATA is communicating directly with these individuals regarding the announcement and is committed to doing what is possible to assist all employees during the transition.

ATA Airlines, headquartered in Indianapolis, now in its 32nd year of operation, offers affordable travel to business centers and popular vacation destinations like New York, Dallas/Ft. Worth, Hawaii, Mexico and the Caribbean. Through direct and connecting codeshare flights, ATA now serves customers in more than 60 markets. For more information, visit ata.com.
 
I am very stunned about MSP. Maybe SWA, just maybe will start MSP service. SWA had to have seen how many pax were being shared on those flights. 12 to 15 flights a day would work. Only 2 gates would be needed. I am sorry to see ATA slowly disappearing. This looks the the end may be coming soon. Just my thoughts.........
 
Well, they are being advised by their partner, SWA, aren't they? They have a secret plan to shrink to profitability. All the others who tried it, just didn't know how.
 
Well, they are being advised by their partner, SWA, aren't they? They have a secret plan to shrink to profitability. All the others who tried it, just didn't know how.

SWA and ATA are 100% independently operated airlines except for the minor code-sharing agreements. Neither the government nor the unions would allow it any other way.

ATA is a very profitable charter company and still holds the title as the nations no. 1 charter outfit. It's the scheduled airline service that it hasn't quite mastered yet. Shrinking back to what it does best isn't a bad place to retrench. Too bad so many of the other carriers don't even have that much to fall back on.
 
OK, absolutely. Yes, Virginia, there is a Santa Claus. :lol:

(BTW, I know several people at ATA (or furloughed from same). Let's just say they have a really different view of the situation than your "official" explanation.)
 
In case you haven't heard, AirTran is taking over low-fare service to Midway from MSP (I SO wanted Southwest to pick it up!).
 
OK, absolutely. Yes, Virginia, there is a Santa Claus. :lol:

(BTW, I know several people at ATA (or furloughed from same). Let's just say they have a really different view of the situation than your "official" explanation.)


Hey, if ATA wanted to select retired SWA executive John Denison to see them through their reorganization it was their choice. I have no doubt that he is relying on his knowledge of what works to get the process done and therefore the apparent similarities to SWA's tactics aren't unexpected.

Funny, my friends at ATA wish SWA would get MORE involved! Hmmm, can your friends beat up my friends?

And yes, I do believe in Santa Claus, and the Easter Bunny, and the Tooth Fairy, and profitable Legacy Carriers, and ... :D

Disclaimer: I am but an individual. My statements reflect only my views and opinions and are most definitely not "official" remarks of Southwest Airlines, Joe's Diner, or any other entity. Take them for what their worth attributing whatever credibility you deem appropriate. (Is that enough fine print? Posting things on websites regarding their company's activities has gotten some folks fired. I don't plan on being one of them!)
 
WN also announced this morning that they will return to Denver. This will replace ATA who had been flying MDW-DIA and PHX-DIA as WN's codesharing partner.
 
WN also announced this morning that they will return to Denver. This will replace ATA who had been flying MDW-DIA and PHX-DIA as WN's codesharing partner.

Just for the record, Baron, ATA has not announced cessation of service at DEN.

SWA and ATA both serve Ft. Myers, as an example.
 

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