Ahh the second shoe drops

[mga707]

Ok. So although ATA isn't flying charters for PHH, they still are alive and well in the charter business. Correct?

(I try to recalibrate my knowledge base whenever I learn that some of my "facts" no longer apply.)

AFAIK they are, at leat in the Hawai'ian market, where they utilize 757s. As another poster noted, though, they must really be wishing they could afford to replace those ancient maintenance-hog L-1011s in order to grab more of the military charter market.

 

[eolesen]

Besides the problems with the Tritanic's reliability, ATA's long-haul military charter business is also hurting because NWA, UAL, and AMR are now going after the same business.

ATA isn't making nearly the same margin they were making when they were the only game in town, mainly because they're having to price their bids against the lower costs of the 744 and 777's that UAL, NWA, and AMR are using.


I have to admit that I was convinced WN was going after a full blown merger, but this last move shows that it was nothing more than window dressing to appease the City of Chicago by making it appear that all the jobs ATA brought to MDW would be secure.

I give it a year before they're liquidated... They've lost whatever market they had from IND, they've given up at MDW, and there's already too much capacity between the West Coast and Hawaii by the majors, Aloha or Hawaiian (CO just announced more last week, and Alaska is also said to be looking at starting up service to HNL and OGG).

 

[justanadd]

The creditors idea is a repeat of the mis-information assumed during the Am. West/AirTran/SWA asset bid process.

Difference here is there was no BK court involved in the above mentioned example

 

[AirwAr]

....
But, the truth is that SWA, for a relatively small amount of money, got control of a major city airport and eliminated a major competitor in that airport at the same time. And, don't expect anyone to believe the altruistic "just trying to help out a fellow airline" BS. SWA wanted to control MDW and ATA stood in their way. Also, if ATA were to fail before SWA got control of the gates, someone else might move in who was stronger than ATA and better able to compete like Airtran, Frontier, or Alaska.
....

Just to add to your remarks. We at AA & UA should give a great big thanks to SW for stepping up and investing in ATA. You may be saying "How can a larger SW presence at MDW be a good thing?" Well, before SW came in, Airtran was the leading investor. You think airfares are in the tank now, just think what would have happend to the airfares at ORD if Airtran & Southwest were in a dog fight for supremacy at MDW. Passengers would be flying coast-to-coast for $20 rather than the current $120.