goldfish
First-Class-Member
H ameicanikh aeroporikh etaireia ATA (IATA:TZ)ekane aithsh prostasias apo tous pistwtes (to perhfhmo Chapter 11).H en logw etaireia me bash thn Indianapoli twn H.P.A. einai h dekath megalyterh twn Hnwmenwn poltiteiwn kai apasxolei panw apo 7000 ypalhllous.Einai h deyterh aeroporikh etaireia mesa sto teleytaio tetramhno meta thn U.S. Airways pou katafeygei sthn lysh tou Chapter 11.
Source:
http://www.cnn.com/2004/BUSINESS/10/26/ ... index.html
(CNN) -- U.S. carrier ATA Airlines has announced it is seeking Chapter 11 bankruptcy protection in order to keep flying while it restructures its finances and trims its route structure, including selling some assets to low-cost competitor Air Tran Airways.
Indianapolis-based ATA, the 10th largest U.S. airline, cited high fuel prices, empty seats and fierce fare competition for the bankruptcy filing, the third by a major U.S. carrier since the September 11, 2001, terrorist attacks which financially devastated the airline industry.
"Excess capacity, extremely high fuel prices -- which continue to escalate -- and declining fares have necessitated that all airlines, including ATA, reexamine their business," said George Mikelsons, chairman of the airline's parent company, ATA Holdings Corp., in a statement Tuesday.
The airline will focus on its "most profitable cornerstones," including flights to and from its Indianapolis hub, flights to Hawaii and charter flights, Mikelsons said. The airline said it would honor tickets and frequent flier programs and planned to continue "business as usual" while it restructures.
As part of the restructuring, Air Tran will pay ATA $87.6 million to assume flight operations, gate leases and routes at Chicago Midway Airport, where ATA is currently the largest carrier. The deal also gives Air Tran ATA's coveted arrival and departure slots at New York's LaGuardia Airport and Ronald Reagan Washington National Airport.
Air Tran and ATA will jointly operate flights into and out of Midway until ATA can make a "gradual, measured exit," the statement said.
So far this year, ATA pilots and flight attendants have accepted nearly $70 million in wage concessions, and the airline has announced plans to trim more than 300 jobs in its workforce of 7,200. The company warned in August that it might run out of cash in early 2005 and last week said its cash situation had worsened.
Monday, the company appointed its chief financial officer, Gilbert Veits, to the new post of chief restructuring officer, triggering bankruptcy speculation.
Even as ATA sought help at the courthouse, executives at Delta Air Lines, the nation's third-largest carrier, were warning that they too may seek bankruptcy protection unless the Atlanta-based airline can gain financial concessions from employees and carriers.
Two other carriers -- US Airways and United Airlines -- are currently reorganizing under Chapter 11. For US Airways, it is the second trip through bankruptcy since 2002.
ATA, which was founded in 1973, currently provides scheduled commercial service to more than 40 U.S. destinations, as well as locations in Mexico and the Caribbean.
Shares of ATA Holdings tumbled 53 cents Tuesday to close at 93 cents on anticipation of the bankruptcy announcement, which was made after Tuesday's market closing.
Source:
http://www.cnn.com/2004/BUSINESS/10/26/ ... index.html
(CNN) -- U.S. carrier ATA Airlines has announced it is seeking Chapter 11 bankruptcy protection in order to keep flying while it restructures its finances and trims its route structure, including selling some assets to low-cost competitor Air Tran Airways.
Indianapolis-based ATA, the 10th largest U.S. airline, cited high fuel prices, empty seats and fierce fare competition for the bankruptcy filing, the third by a major U.S. carrier since the September 11, 2001, terrorist attacks which financially devastated the airline industry.
"Excess capacity, extremely high fuel prices -- which continue to escalate -- and declining fares have necessitated that all airlines, including ATA, reexamine their business," said George Mikelsons, chairman of the airline's parent company, ATA Holdings Corp., in a statement Tuesday.
The airline will focus on its "most profitable cornerstones," including flights to and from its Indianapolis hub, flights to Hawaii and charter flights, Mikelsons said. The airline said it would honor tickets and frequent flier programs and planned to continue "business as usual" while it restructures.
As part of the restructuring, Air Tran will pay ATA $87.6 million to assume flight operations, gate leases and routes at Chicago Midway Airport, where ATA is currently the largest carrier. The deal also gives Air Tran ATA's coveted arrival and departure slots at New York's LaGuardia Airport and Ronald Reagan Washington National Airport.
Air Tran and ATA will jointly operate flights into and out of Midway until ATA can make a "gradual, measured exit," the statement said.
So far this year, ATA pilots and flight attendants have accepted nearly $70 million in wage concessions, and the airline has announced plans to trim more than 300 jobs in its workforce of 7,200. The company warned in August that it might run out of cash in early 2005 and last week said its cash situation had worsened.
Monday, the company appointed its chief financial officer, Gilbert Veits, to the new post of chief restructuring officer, triggering bankruptcy speculation.
Even as ATA sought help at the courthouse, executives at Delta Air Lines, the nation's third-largest carrier, were warning that they too may seek bankruptcy protection unless the Atlanta-based airline can gain financial concessions from employees and carriers.
Two other carriers -- US Airways and United Airlines -- are currently reorganizing under Chapter 11. For US Airways, it is the second trip through bankruptcy since 2002.
ATA, which was founded in 1973, currently provides scheduled commercial service to more than 40 U.S. destinations, as well as locations in Mexico and the Caribbean.
Shares of ATA Holdings tumbled 53 cents Tuesday to close at 93 cents on anticipation of the bankruptcy announcement, which was made after Tuesday's market closing.
