Press Release Source: ATA Airlines, Inc
ATA Airlines Announces Upcoming Schedule Changes
Thursday October 13, 3:00 pm ET
Company makes strategic move to eliminate specific routes as part of ongoing business plan
INDIANAPOLIS, Oct. 13, 2005 (PRIMEZONE) -- As part of ATA's (ATA Airlines, Inc.) (Other OTC:ATAHQ.PK - News) efforts to create an even more efficient and cost-competitive operating structure, the Company announces it will be ending its service from Chicago-Midway to Boston on Oct. 28, 2005, Newark, N.J. on Oct. 29, 2005 and Minneapolis/St. Paul on Dec. 1, 2005, respectively. ATA will also suspend its launch of new service between Chicago-Midway and Miami and Sarasota, Fla. Service to these markets was scheduled to begin on Oct. 29, 2005.
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According to ATA Senior Vice President and Chief Commercial Officer Subodh Karnik, the decision to eliminate these routes is part of an ongoing effort to create a strategic business plan that best positions the Company for bankruptcy emergence. ``All airlines, including ATA, must continually evaluate the future profitability and viability of each route - based on passenger demand, competition, and cost inputs,'' said Karnik. ``Increased capacity, fluctuating demand and skyrocketing fuel prices created a financial reality we simply could not ignore. Ultimately, it is our responsibility to create an operating plan that leads to predictable long-term profitability and the enhanced financial stability of the Company.''
ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick agreed. ``These schedule changes will improve ATA's cash flow and put the Company on a better footing to attract an investment and emerge from Chapter 11.''
ATA is in the process of contacting customers affected by this announcement and is putting plans into place to assist those individuals holding tickets beyond the cancellation dates until Jan. 9, 2006, in booking alternative travel on other carriers. Those holding tickets for travel beyond Jan. 9, 2006 on the affected routes will be provided full refunds. All changes will be reflected in the Company's public timetable as of Oct. 16, 2005.
Approximately 100 employee positions are affected by the route restructuring. ATA is communicating directly with these individuals regarding the announcement and is committed to doing what is possible to assist all employees during the transition.
ATA Airlines, headquartered in Indianapolis, now in its 32nd year of operation, offers affordable travel to business centers and popular vacation destinations like New York, Dallas/Ft. Worth, Hawaii, Mexico and the Caribbean. Through direct and connecting codeshare flights, ATA now serves customers in more than 60 markets. For more information, visit ata.com.
ATA Airlines Announces Upcoming Schedule Changes
Thursday October 13, 3:00 pm ET
Company makes strategic move to eliminate specific routes as part of ongoing business plan
INDIANAPOLIS, Oct. 13, 2005 (PRIMEZONE) -- As part of ATA's (ATA Airlines, Inc.) (Other OTC:ATAHQ.PK - News) efforts to create an even more efficient and cost-competitive operating structure, the Company announces it will be ending its service from Chicago-Midway to Boston on Oct. 28, 2005, Newark, N.J. on Oct. 29, 2005 and Minneapolis/St. Paul on Dec. 1, 2005, respectively. ATA will also suspend its launch of new service between Chicago-Midway and Miami and Sarasota, Fla. Service to these markets was scheduled to begin on Oct. 29, 2005.
ADVERTISEMENT
According to ATA Senior Vice President and Chief Commercial Officer Subodh Karnik, the decision to eliminate these routes is part of an ongoing effort to create a strategic business plan that best positions the Company for bankruptcy emergence. ``All airlines, including ATA, must continually evaluate the future profitability and viability of each route - based on passenger demand, competition, and cost inputs,'' said Karnik. ``Increased capacity, fluctuating demand and skyrocketing fuel prices created a financial reality we simply could not ignore. Ultimately, it is our responsibility to create an operating plan that leads to predictable long-term profitability and the enhanced financial stability of the Company.''
ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick agreed. ``These schedule changes will improve ATA's cash flow and put the Company on a better footing to attract an investment and emerge from Chapter 11.''
ATA is in the process of contacting customers affected by this announcement and is putting plans into place to assist those individuals holding tickets beyond the cancellation dates until Jan. 9, 2006, in booking alternative travel on other carriers. Those holding tickets for travel beyond Jan. 9, 2006 on the affected routes will be provided full refunds. All changes will be reflected in the Company's public timetable as of Oct. 16, 2005.
Approximately 100 employee positions are affected by the route restructuring. ATA is communicating directly with these individuals regarding the announcement and is committed to doing what is possible to assist all employees during the transition.
ATA Airlines, headquartered in Indianapolis, now in its 32nd year of operation, offers affordable travel to business centers and popular vacation destinations like New York, Dallas/Ft. Worth, Hawaii, Mexico and the Caribbean. Through direct and connecting codeshare flights, ATA now serves customers in more than 60 markets. For more information, visit ata.com.
