Looks Like Swa Won The Bidding For Ata.

runway4 said:
What about the slots at LGA and the LGA-MDW codeshare with FL? WN most likely isn't interested in those. Will FL still operate those flights or do the slots go back to PANYNJ?
[post="229376"][/post]​

Stating first that it's ALL SPECULATION for now, a funded ATA could continue to operate it's slots at LGA and maybe this'll be one of the code-share routes.

SWA'a announcement said it'd be "early next year" before routes are worked out.
 
swflyer said:
Stating first that it's ALL SPECULATION for now, a funded ATA could continue to operate it's slots at LGA and maybe this'll be one of the code-share routes.

SWA'a announcement said it'd be "early next year" before routes are worked out.
[post="229379"][/post]​

True, it's still all speculation. After my last post I saw this in another release...

The bid beat out a $90 million offer from AirTran Airways to buy all 14 of ATA's Chicago gates, as well as arrival and departure slots at New York's LaGuardia Airport and Ronald Reagan Washington International Airport.

Interesting... I suppose WN can hold the slots and sublease them -- but can they do so indefinitely? Isn't there a use-them-or-lose-them stipulation?
 
Mr. Cock Roach, what do you base your info on sir? Can you back it up with some figures? I've read a couple of other pundits proclaiming the same as you sir, but they are only going by what they have "heard" from other "experts".

I will give you that SWA has made many, many errors during the past 30plus years and have a terrible track record on making business decisions. Its THE worst run airline in the USA, if not then they must be at least the second worst. I think the "suits" at SWA should poll experts on these message boards on how to run the company and what direction it should be pointed in. There is a ton of free, intelligent info on just this board, jeepers, I can't believe they don't know that.

I think you bring up many, many valid points, Mr. Cock Roach, thanks for the input sir.



CapnCockroach said:
If approved, SW is paying waaaaaay too much for waaaaay too little. AT may be the real winner here.

That's a good thing.
[post="229401"][/post]​
 
I look at this deal as being good for SWA. It will get them into markets they currently don't cover by way of ata and mdw.

You can say what you want but wn will control ata. They are putting money in the company and will run it the way they want. I look at this a good thing for both company's.
 
Chicago Tribune Article w/emphasis added for those wondering about the landing rights at LGA and DCA.

Southwest wins bid for more Midway gates
By Mark Skertic, Tribune staff reporter
December 16, 2004, 4:20 PM CST

Southwest Airlines will gain control over more than half the gates at Midway Airport, while ATA Airlines will scale back operations there, under a $117 million deal that will enable ATA to emerge from bankruptcy protection.

Passengers who have grown accustomed to flying ATA will find fewer flights from Midway, and some routes may be eliminated. But that may be balanced by Southwest expanding its offerings in Chicago. The deal announced today gives Southwest part ownership in ATA. It allows Southwest to significantly increase its presence here — expanding its capacity by a third &151; and prevent another rival from moving in and taking over all the gates ATA has been using at Midway.

The bid includes a commitment to connect Southwest passengers with the restructured airline.

Indianapolis-based ATA will continue to have a large Chicago presence, and the airline will keep its landing rights in New York and Washington, D.C., two valuable assets it had earlier expected to lose in the bankruptcy.

The agreement between the two low-cost carriers must still be approved by a bankruptcy judge and the city of Chicago, which owns the gates. Southwest expects the bankruptcy court will approve the plan Tuesday and the deal will close early next year.

"This allows Southwest to grow our Chicago presence, and it will provide ATA and its employees and stakeholders with much needed liquidity," said Gary Kelly, Southwest chief executive, in a prepared statement. "The real winners here, of course, are the customers traveling in and out of Chicago Midway Airport, who will get a lot of low-fare flights to many destinations from both airlines."

Southwest will pay $40 million in cash and $40 million in financing for ATA assets, and buy $30 million in ATA preferred stock. Southwest also will guarantee a $7 million payment to the City of Chicago for a construction loan.

AirTran Airways today acknowledged that it had lost its competing bid to take over Midway gate leases held by ATA.

"We saw Midway Airport expansion as a good opportunity, but we were not going to overpay for those assets. We congratulate the parties on the conclusion of the auction," said Joe Leonard, AirTran chairman and chief executive, in a statement.

Ultimately, the deal could give Southwest control of three of every four gates at Midway, including ATA's remaining eight gates. Dallas-based Southwest now controls 19 of the 43 Midway gates.

AirTran had bid $90 million in October, on the same day ATA filed for bankruptcy.

Midway gates are owned by the City of Chicago, which has signaled that it would not object to Southwest's plans to expand at the airport.
Copyright © 2004, Chicago Tribune