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ATA files for bankruptcy
Indianapolis, Oct. 26 - Even though American Trans Airlines planes are taking off, the stock of ATA Holdings=A0plummeted, down more than 30 percent on the day=A0the airline filed bankruptcy. Indianapolis attorney Alan Mills represents creditors of ATA. He says it could take ATA awhile to get through a bankruptcy. "There are some issues that won't be resolved soon. The debtor has a number of aircraft and must decide if it wants to stay the same size. It may decide size now is no longer manageable." The Financial Times of London reports Orlando,Florida-based Air Tran Airways is in talks with ATA concerning its gates at Midway Airport in Chicago. ATA holds a major presence at Indianapolis International Airport, it's the airport's largest carrier. The bankruptcy filing=A0took place at the Indianapolis federal courthouse. The stock of ATA Holdings dropped 36 percent Tuesday to 93 cents a share. ATA files for bankruptcy http://www.wthr.com/Global/story.asp...nav=3D9TahSOBW |
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G M wrote:
Indianapolis, Oct. 26 - Even though American Trans Airlines planes are taking off, the stock of ATA Holdings*plummeted, down more than 30 percent on the day*the airline filed bankruptcy. Is there a feeling that ATA will actually survive with just a selected sales of assets to pay debt ? Will it downsize itself into a very small regional carrier ? Or will it sell so many assets to pay debts that there won't be enough left to make the airline continue to operate ? |
#3
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G M wrote:
Indianapolis, Oct. 26 - Even though American Trans Airlines planes are taking off, the stock of ATA Holdings*plummeted, down more than 30 percent on the day*the airline filed bankruptcy. Is there a feeling that ATA will actually survive with just a selected sales of assets to pay debt ? Will it downsize itself into a very small regional carrier ? Or will it sell so many assets to pay debts that there won't be enough left to make the airline continue to operate ? |
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UPDATED: 5:36 pm EST October 26, 2004 INDIANAPOLIS -- ATA Airlines Inc., the nation's 10th-largest airline, filed for bankruptcy protection Tuesday, one day after naming an executive to oversee the restructuring of the discount carrier's mounting debt. ATA said Florida-based AirTran Airways Inc. will assume ATA's operations, routes and gate leases at Chicago Midway Airport. AirTran also will take ATA's arrival and departure slots at LaGuardia Airport in New York and the Ronald Reagan National Washington National Airport.ATA said it plans to keep its headquarters in Indianapolis, but it did not rule out more job cuts. Tuesday's filing under Chapter 11 of the federal bankruptcy code came as the Indianapolis-based airline faces soaring fuel costs, an industry fare war and sharply lower demand for military charter flights. ATA also is saddled with millions of dollars in debt from new aircraft purchases. The bankruptcy news came on the same day that information leaked that the filing would occur as soon as Tuesday. In an SEC filing last week, ATA said its finances have worsened since Aug. 16, when it reported that it had lost $90.7 million during the first half of 2004 and that it probably would run out of csah in early 2005. In recent weeks the company has announced plans to cut more than 300 jobs, including 150 flight attendants. Flight attendants recently agreed to a 10 percent pay cut. So far this year, they and ATA pilots have accepted nearly $70 million in wage concessions. TheIndyChannel.com - News - ATA Files For Bankruptcy Protection http://www.theindychannel.com/news/3850813/detail.html |
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UPDATED: 5:36 pm EST October 26, 2004 INDIANAPOLIS -- ATA Airlines Inc., the nation's 10th-largest airline, filed for bankruptcy protection Tuesday, one day after naming an executive to oversee the restructuring of the discount carrier's mounting debt. ATA said Florida-based AirTran Airways Inc. will assume ATA's operations, routes and gate leases at Chicago Midway Airport. AirTran also will take ATA's arrival and departure slots at LaGuardia Airport in New York and the Ronald Reagan National Washington National Airport.ATA said it plans to keep its headquarters in Indianapolis, but it did not rule out more job cuts. Tuesday's filing under Chapter 11 of the federal bankruptcy code came as the Indianapolis-based airline faces soaring fuel costs, an industry fare war and sharply lower demand for military charter flights. ATA also is saddled with millions of dollars in debt from new aircraft purchases. The bankruptcy news came on the same day that information leaked that the filing would occur as soon as Tuesday. In an SEC filing last week, ATA said its finances have worsened since Aug. 16, when it reported that it had lost $90.7 million during the first half of 2004 and that it probably would run out of csah in early 2005. In recent weeks the company has announced plans to cut more than 300 jobs, including 150 flight attendants. Flight attendants recently agreed to a 10 percent pay cut. So far this year, they and ATA pilots have accepted nearly $70 million in wage concessions. TheIndyChannel.com - News - ATA Files For Bankruptcy Protection http://www.theindychannel.com/news/3850813/detail.html |
#6
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Some additional information on the event:
All ATA operations continue unchanged. The transfer of assets to Valujet/Airtran will be gradual. It will start with Airtran codeshareing on ATA flights, and then operations slowly move to Airtran crews/planes, allowing for gradual downsizing of ATA staff in those stations sold to Airtran. There will be reciprocical FF point. This agreement will start to take effect late this year or early next year. Tickets will be honoured without rebooking needed on flights that will be shifted to Airtran. ATA continues to the outfitting of its planes with a business class section. |
#7
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