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

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 ?

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 ?

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

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

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.

(G M) wrote in news:4141-417ED706-421@storefull-
3253.bay.webtv.net:
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

Sounds like AirTran has really stepped in sh*t...

ATA also is saddled with millions of dollars in debt from new aircraft
purchases.

Kinda wonder how many times we'll be hearing that in the next year or so...

--lw--