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Member ![]() ![]() ![]() Join Date: Jul 2004 Location: Atlanta
Posts: 50
| look out South west
AirTran Airways Agrees to Assume Chicago Midway Gates and Acquire Certain Other Assets of ATA Airlines
__________________October 26, 2004 6:11:00 PM ET ORLANDO, Fla., Oct. 26 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. AAI, announced today that the airline has agreed, subject to certain conditions, to assume the Chicago Midway Airport gate leases and acquire certain other related assets including takeoff and landing slots at New York's LaGuardia and Washington's Ronald Reagan National airports of ATA Airlines, a unit of ATA Holdings Corp. ATAH, for approximately $87.5 million. ATA Holdings Corp., and certain of its subsidiaries, have filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana. Under the agreement with ATA Airlines, AirTran Airways would assume ATA's leases on up to 14 gates at Chicago's Midway Airport, 19 time-controlled take-off and landing slots at New York's LaGuardia Airport and 8 such slots at Washington's Reagan National Airport. The deal must receive various approvals, including approval of the Bankruptcy Court in ATA's Chapter 11 proceeding. In the interim, ATA Airlines is to continue operating flights and business as usual at Chicago's Midway Airport. AirTran Airways plans to introduce its fuel efficient, all new Boeing fleet on the routes from Chicago Midway, and intends to enter into a marketing agreement with ATA Airlines which is currently contemplated to include a code-share, frequent traveler program and other programs to benefit both carriers' customers. In conjunction with the code-share arrangement, the carriers, also intend to enter into an agreement to outsource certain flying during the transition of service from ATA Airlines to AirTran Airways at Chicago's Midway Airport. "This proposal offers a great opportunity for both AirTran Airways and the City of Chicago as well as significantly aiding ATA in its reorganization," said Joe Leonard, chairman and chief executive officer of AirTran Airways. "Adding a hub in Chicago is an important strategic expansion for AirTran Airways' growing network," stated Robert L. Fornaro, president and chief operating officer. "A Midwest hub complements AirTran Airways' strong East Coast network and will capitalize on a number of synergies in the cities we serve across the country. This addition will give AirTran Airways a true national presence. We look forward to increasing our service for the Chicago business and leisure travelers." |
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![]() | #2 | |
Senior Member ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2003 Location: ATL
Posts: 267
| Truly Going National
This was inevitable as AirTran continues to steadily expand westward. They're trying to disburse their main hub in Atlanta into several mini-hubs including Atlanta, Baltimore, and Chicago. Look for them to seek opportunities to beef up their operations in Dallas as well, using that as their southwest mini-hub. Apologies to you left-coasters who don't consider Texas southwest, we've had this "midsouth" discussion before.
__________________Hmmmm, flying brand new 737-800s with mini-hubs in Baltimore, Chicago, and Dallas? Sounds a little familiar. Personally, I like Southwest Airlines very much. JetBlue too. Song too, Delta may someday have to morph into Song entirely. Toss in Frontier and AmericaWest, and I can't wait for the day when all six major low-cost carriers blanket every remote corner of the entire country. Which they almost do already... The intense competition will greatly improve the product. Airlines that aren't affordable, fun, safe, with all leather seating, satellite tv/radio at every seatback, and fleets of newer aircraft will most likely go the way of TWA, Pan Am, and Eastern. Or will have to concentrate more on international flights ![]() Quote:
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![]() | #3 | |
Senior Member ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2003 Location: ATL
Posts: 267
| Getting More and More Interesting
This is starting to get really exciting. And I'm not just talking about AirTran: Quote:
http://www.ajc.com/business/content/.../09midway.html | |
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![]() | #4 |
Member ![]() ![]() ![]() Join Date: Oct 2003 Location: John F. Kennedy
Posts: 82
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The airline industry is getting really exciting! I can't wait to see the out come of the "Battle for Midway" (no...not island)! I have said before that I believe Delta's plans were to completely morph into Song....so if it happens I CALLED IT! Also..i look forward to seeing Primaris Airlines http://www.primarisairlines.com, Sky Express Airways http://www.skyexpress.us, and Riviera Jet http://www.rivierajet.com (transatlantic jetBlue)...my my my...so many new airlines in so very little time! - John |
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![]() | #5 |
Member ![]() ![]() ![]() Join Date: Jul 2004 Location: Atlanta
Posts: 50
| NEW flights out of MDW
Flights to Five New Destinations to Begin January 11, 2005 - ORLANDO, Fla., Nov. 29 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. AAI, announced today that the airline will add seven new daily nonstop flights from Chicago's Midway Airport to Fort Lauderdale, Fort Myers, Orlando, Sarasota/Bradenton and Tampa. The new service is effective January 11, 2005. "We see a great opportunity to bring our low-cost service to these new routes and help Chicago-area travelers find affordable air fares to their favorite vacation and business destinations," said Bob Fornaro, AirTran Airways' president and chief operating officer. "This new service demonstrates AirTran Airways' commitment to the Chicago market, and our service to the new and convenient Chicago Midway Airport will make getting to and from Chicago even easier. While this is our initial expansion in Chicago, we hope it represents the beginning of our partnership with ATA Airlines," he added. Although the larger deal previously announced with ATA Airlines is subject to approval by the City of Chicago among others, these new flights are independent of the ATA transaction and will operate as scheduled. AirTran Airways currently operates eight daily roundtrip flights to the airline's hub in Atlanta. This new service includes one flight to Fort Lauderdale, two flights to Fort Myers, two flights to Orlando, one flight to Sarasota/Bradenton and one flight to Tampa. |
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Senior Member ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2003 Location: ATL
Posts: 267
| America West Backs Down
One down, a couple more to go ![]() Quote:
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![]() | #7 | |
Senior Member ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2003 Location: ATL
Posts: 267
| Now the Gloves are Off
WOW, this is gonna be fun to watch! ![]() Quote:
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![]() | #8 |
Senior Member ![]() ![]() ![]() ![]() ![]() Join Date: Aug 2003 Location: ATL
Posts: 267
| Knock Yourself Out
WHOOOO, too rich for AirTran! Who could beat this offer: Southwest just outbid AirTran for ATA's Midway operation by nearly $30 million ($89mil vs. $117mil). For eight fewer gates than the AirTran deal, mind you.
__________________I seem to remember AirTran being the only party to show up at the table earlier this year when ATA asked for help. Oh well, if there's gonna be a monopoly in Chicago I guess Southwest is a better choice than some. Heaven forbid the courts allow more competition ![]() This is going to be exciting to watch over the next five years or so... |
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