What kind of chronology are we faced with, with regard to ATA and AirTran's agreement pending the City of Chicago and the Bankruptcy Court's decision? The holidays are quickly coming and alot of money stand to be made. The sooner the better for all parties involved. AirTran would then include LAX LAS SEA PHX and other west coast destinations out of MDW?
Timeline For Aquisition?
- Thread starter skyguy25
- Start date
markkus757
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- Jul 26, 2004
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If the agreement was made in bankruptcy court, it will be challenged. Southwest is rumored to be looking at ATA's assets like a shark stalking it's prey; and if they bid on them, look for a long drag out. Bankruptcy court will look for the most money for the creditors. They will not just give it to Airtran.
jimntx
Veteran
ATA and AirTran must get the BK court's ok for the deal to go through. That is not a slam-dunk, done-in-2-hours kind of thing--particularly if any of the creditors file objections or other airlines make better offers for the assets (something that AWA has already said they will do).
City of Chicago has already said that the MDW gates are not ATA's to sell. Should get interesting.
City of Chicago has already said that the MDW gates are not ATA's to sell. Should get interesting.
Airtran has in their agreement 60-90 notice. If it is not done by Jan 1st. Airtran has the right to forfeit the deal and not pay out the 87 million. Also if Airtran does pull out Airtran becomes a creditor and seeks a 2 million dollar cancelation fee. Mostly due to lawyer fees.
jimntx
Veteran
rumorboy said:
Yeah, but that's called, "Excuse me, Mr. Airtran, but you will need to take a number and get in line." Such debts are unsecured. They get paid only if all the secured creditors get paid.
firstamendment
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- Apr 1, 2003
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With regards to a merger, be careful what you ask for. 
November 12, 2004
AirTran CEO says ATA deal close
Officials from both airlines at Midway today
By Paul Merrion
Joseph Leonard
AirTran Airways hopes to land a decision "soon" from Chicago officials on its bid to assume 14 gate leases at Midway Airport as part of the bankruptcy restructuring of ATA Airlines, Midway's largest carrier.
"We think we'll know pretty soon," says Joseph Leonard, chairman and CEO of parent AirTran Holdings Inc. "We've given them a lot more than a high level, this is what we think we can do" analysis. "We've showed the city a definitive plan of how we'd build this" over time.
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A Chicago Department of Aviation spokeswoman says there have been talks with several airlines that expressed interest in ATA's Midway gates after the discount carrier entered bankruptcy last month and announced plans to exit the Chicago market. While declining to comment on when a decision is expected, she said the city is negotiating only with AirTran.
Because the city owns the gates, it has to approve the transfer of a gate lease to another party. The transaction also needs bankruptcy court approval.
Southwest Airlines, which already has 19 gates at Midway, has said it may want to acquire seven more, and America West Airlines also has expressed interest. A bankruptcy court hearing Monday is expected to establish ground rules and a timetable for bids rivaling AirTran's proposal.
AirTran started the process when it reached an agreement last month to pay Indianapolis-based parent ATA Holdings Inc. $87.5 million for gates at Midway, New York and Los Angeles. In addition, the two airlines will cooperate on marketing and ATA will operate the Chicago routes for AirTran while AirTran gradually brings in its own planes.
Mr. Leonard says the deal would create an "instant hub" in Chicago and "for the first time ever, a national presence" for Florida-based AirTran, whose main hub now is Atlanta. "Those are not bad places to be in if you're in the airline business."
Mr. Leonard and other AirTran officials are visiting Midway Airport today, inspecting the 14 gates they definitely want, as well as other facilities they may or may not acquire from ATA.
"We don't really need" ATA's Chicago reservations center, which employs about 300 at an office building near O'Hare International Airport, says Mr. Leonard. "It's our understanding ATA will continue to operate that." An ATA spokeswoman could not confirm whether that decision has been made.
However, AirTran may decide to acquire ATA's hangar space at Midway in order to maintain the planes it plans on bringing to Chicago. "We clearly have to hire mechanics," says Mr. Leonard. "With the weather in Chicago, we probably need hangars."
AirTran CEO says ATA deal close
Officials from both airlines at Midway today
By Paul Merrion
Joseph Leonard
AirTran Airways hopes to land a decision "soon" from Chicago officials on its bid to assume 14 gate leases at Midway Airport as part of the bankruptcy restructuring of ATA Airlines, Midway's largest carrier.
"We think we'll know pretty soon," says Joseph Leonard, chairman and CEO of parent AirTran Holdings Inc. "We've given them a lot more than a high level, this is what we think we can do" analysis. "We've showed the city a definitive plan of how we'd build this" over time.
continued below
Advertisement
A Chicago Department of Aviation spokeswoman says there have been talks with several airlines that expressed interest in ATA's Midway gates after the discount carrier entered bankruptcy last month and announced plans to exit the Chicago market. While declining to comment on when a decision is expected, she said the city is negotiating only with AirTran.
Because the city owns the gates, it has to approve the transfer of a gate lease to another party. The transaction also needs bankruptcy court approval.
Southwest Airlines, which already has 19 gates at Midway, has said it may want to acquire seven more, and America West Airlines also has expressed interest. A bankruptcy court hearing Monday is expected to establish ground rules and a timetable for bids rivaling AirTran's proposal.
AirTran started the process when it reached an agreement last month to pay Indianapolis-based parent ATA Holdings Inc. $87.5 million for gates at Midway, New York and Los Angeles. In addition, the two airlines will cooperate on marketing and ATA will operate the Chicago routes for AirTran while AirTran gradually brings in its own planes.
Mr. Leonard says the deal would create an "instant hub" in Chicago and "for the first time ever, a national presence" for Florida-based AirTran, whose main hub now is Atlanta. "Those are not bad places to be in if you're in the airline business."
Mr. Leonard and other AirTran officials are visiting Midway Airport today, inspecting the 14 gates they definitely want, as well as other facilities they may or may not acquire from ATA.
"We don't really need" ATA's Chicago reservations center, which employs about 300 at an office building near O'Hare International Airport, says Mr. Leonard. "It's our understanding ATA will continue to operate that." An ATA spokeswoman could not confirm whether that decision has been made.
However, AirTran may decide to acquire ATA's hangar space at Midway in order to maintain the planes it plans on bringing to Chicago. "We clearly have to hire mechanics," says Mr. Leonard. "With the weather in Chicago, we probably need hangars."
From PR Newswire:
AirTran Airways Announces Definitive Agreement with ATA Airlines
Tuesday November 16, 4:19 pm ET
ORLANDO, Fla., Nov. 16 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), announced today that the airline has entered into a definitive agreement with ATA Holdings Corp. (OTC Bulletin Board: ATAH.PK - News) to assume the operation of 14 gates at Chicago's Midway Airport. The agreement also provides that AirTran Airways and ATA will enter into a code share and marketing agreement covering operations from Midway as well as other points on each airline's network. The parties expect the closing will occur on or before December 23, 2004. ATA Holdings and its subsidiary, ATA Airlines, are currently operating as debtors-in-possession in Chapter 11 cases pending in Indianapolis.
The purchase price is $89,955,000, subject to adjustment. The purchase price will be paid in installments. ATA has agreed to maintain its current flight service levels at Midway Airport until January 11, 2005, and, subject to certain contingencies, to make available to AirTran Airways up to twelve of ATA's 737-800 aircraft on a "wet lease" basis for varying periods of time through approximately June 4, 2005.
In addition, AirTran Airways will assume responsibility for certain passenger tickets previously sold by ATA for air travel to or from Midway Airport.
The closing is subject to a number of conditions, including approvals by the Bankruptcy Court and the City of Chicago. The agreement provides for the payment to AirTran Airways of a termination fee if it is terminated under certain circumstances, including, among others, the transfer of one or more of the assets and leases related to ATA's Midway operations to a third party or the sale or merger of ATA with a third party.
AirTran Airways is one of America's largest low-fare airlines -- with 6,000 friendly, professional Crew Members and operating over 500 flights a day to more than 40 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, the world's busiest airport by passenger volume, where it is the second largest carrier. AirTran Airways, a subsidiary of AirTran Holdings (NYSE: AAI - News), is the world's largest operator of the Boeing 717 and has America's youngest all-Boeing fleet. The airline recently added the Boeing 737-700 aircraft, one of the most fuel efficient and environmentally friendly aircraft flying today, to its fleet and looks to begin outfitting its planes with XM Satellite Radio this fall. For reservations or more information, visit http://www.airtran.com (America Online Keyword: AirTran).
Editor's note: Statements regarding the Company's operational and financial success, business model, expectation about future success, improved operational performance and our ability to maintain or improve our low costs are forward-looking statements and are not historical facts. Instead, they are estimates or projections involving numerous risks or uncertainties, including but not limited to, consumer demand and acceptance of services offered by the Company, the Company's ability to maintain current cost levels, fare levels and actions by competitors, regulatory matters and general economic conditions. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2003. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements.
Media Contact: Tad Hutcheson
[email protected]
678.254.7442
Judy Graham-Weaver
[email protected]
678.254.7448
AirTran Airways Announces Definitive Agreement with ATA Airlines
Tuesday November 16, 4:19 pm ET
ORLANDO, Fla., Nov. 16 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), announced today that the airline has entered into a definitive agreement with ATA Holdings Corp. (OTC Bulletin Board: ATAH.PK - News) to assume the operation of 14 gates at Chicago's Midway Airport. The agreement also provides that AirTran Airways and ATA will enter into a code share and marketing agreement covering operations from Midway as well as other points on each airline's network. The parties expect the closing will occur on or before December 23, 2004. ATA Holdings and its subsidiary, ATA Airlines, are currently operating as debtors-in-possession in Chapter 11 cases pending in Indianapolis.
The purchase price is $89,955,000, subject to adjustment. The purchase price will be paid in installments. ATA has agreed to maintain its current flight service levels at Midway Airport until January 11, 2005, and, subject to certain contingencies, to make available to AirTran Airways up to twelve of ATA's 737-800 aircraft on a "wet lease" basis for varying periods of time through approximately June 4, 2005.
In addition, AirTran Airways will assume responsibility for certain passenger tickets previously sold by ATA for air travel to or from Midway Airport.
The closing is subject to a number of conditions, including approvals by the Bankruptcy Court and the City of Chicago. The agreement provides for the payment to AirTran Airways of a termination fee if it is terminated under certain circumstances, including, among others, the transfer of one or more of the assets and leases related to ATA's Midway operations to a third party or the sale or merger of ATA with a third party.
AirTran Airways is one of America's largest low-fare airlines -- with 6,000 friendly, professional Crew Members and operating over 500 flights a day to more than 40 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, the world's busiest airport by passenger volume, where it is the second largest carrier. AirTran Airways, a subsidiary of AirTran Holdings (NYSE: AAI - News), is the world's largest operator of the Boeing 717 and has America's youngest all-Boeing fleet. The airline recently added the Boeing 737-700 aircraft, one of the most fuel efficient and environmentally friendly aircraft flying today, to its fleet and looks to begin outfitting its planes with XM Satellite Radio this fall. For reservations or more information, visit http://www.airtran.com (America Online Keyword: AirTran).
Editor's note: Statements regarding the Company's operational and financial success, business model, expectation about future success, improved operational performance and our ability to maintain or improve our low costs are forward-looking statements and are not historical facts. Instead, they are estimates or projections involving numerous risks or uncertainties, including but not limited to, consumer demand and acceptance of services offered by the Company, the Company's ability to maintain current cost levels, fare levels and actions by competitors, regulatory matters and general economic conditions. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2003. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements.
Media Contact: Tad Hutcheson
[email protected]
678.254.7442
Judy Graham-Weaver
[email protected]
678.254.7448
coolflyingfool
Veteran
- Aug 20, 2002
- 1,192
- 1
Not sure if the 7 added flights in January are in speculation that the merger will be approved or if it is just Airtran adding their own flights to MDW. Either way it is good news for the consumers of MDW as 3 of the routes will go head-to-head with SWA and you can look for some LOW fares to come of that fight. Just my thoughts.....
