ATA Airlines :: essays research papers

On October 23, 2004 ATA Airlines filed for bankruptcy. The Indianapolis-based carrier also said it has agreed to sell its hub at Chicagos Midway Airport to AirTran, one of its major competitors, for $87.5 one million million million dollars. Like other airlines operating in bankruptcy, AirTran said it will maintain its full fledge schedule and honor its frequent-flier commitments. The tenth-largest U.S. airline by traffic, ATA joins United, US Airways and Hawaiian Airlines in bankruptcy. ATA is the first major low-co&64817&4355st airline to seek bankruptcy protection. It has long been having difficulties by its costly leases, estimated to be virtually $100 million dollars per year oer prevailing market rates. ATA will turn over its slots at New Yorks LaGuardia and Washington Reagan National Airport to AirTran and will fly fifteen of its aircraft on AirTran behalf for six months. ATA has not arranged financing during bankruptcy but Chairman J. George Mikelsone said the AirTran dea l would provide immediate cash infusion while he lines up financing elsewhere. ATA lost $90 million dollars in the first half of this year on revenue of $778 million dollars.ATA Airlines is trying everything they can to view as their company. But they are going to fill to wait it out. Some of their opinions is to reorganize, return to profitability, settle their debts, and be released from bankruptcy or they could go out of business and have their assets auctioned off under court supervision to pay as numerous of their remaining debts as possible. They say that the bankruptcy could probably go on for many months, perhaps for years. Some airlines, such as Continental Airlines and American West, have reorganized under bankruptcy protection, and are still operating. Several others in the USA, and more(prenominal) in other parts of the world, have gone out of business, sometimes after being in and out of bankruptcy repeatedly. Many people had questions about if they bought tickets f or an airline and then they went bankrupt what should they do? They need to wait and see. You cant get retroactive insurance. Also be prepared for schedule changes, flight cancellations, or other disruptions of your plans, before or during your trip, possibly with little or no warning. Another thing is if you have electronic tickets, consider going to the airlines ticket counter at an airport, or one of its city ticket offices, and paying to get your ticket converted to paper tickets.