This is a letter to employees from ATA's owner and CEO. He addresses plans for the airline and intentions for honoring tickets. I copies this off of my husbands' employee website!
________________________________
Dear Colleagues:
Today marks a milestone for ATA as we begin our transformation into a refocused, streamlined and profitable airline. The steps we are taking will help assure our future for our employees, customers and the cities we serve.
Our parent company, ATA Holdings Corp. and certain subsidiaries, including ATA Airlines, Inc., have filed for relief under Chapter 11. This means we intend to restructure our debt and to continue business as usual. We will stand by our customer commitments, honoring tickets, upholding our full schedule, in-flight services and frequent flyer reward programs.
Along with the filing, we have reached an agreement with AirTran Airways, Inc in which AirTran will assume our flight operations, gates lease, and routes in Chicago Midway Airport as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport. The agreement, which needs the City of Chicagos approval, will take effect later this year or early next year, and is to be finalized over the next several days.
We are in continuing discussions with potential third-party lenders to procure Debtor-In-Possession (DIP) financing. Meanwhile, the ATSB has agreed to allow us continued use of our cash collateral, which, combined with the Companys projected cash flow from operations, should be sufficient to fund the needs of ATA and our operating subsidiaries until we reach an agreement for DIP financing.
Our agreement with AirTran is key to our transformation
By re-structuring and partnering with AirTran, we intend to re-create ATA as a formidable low-cost, albeit smaller competitor, capable of winning in todays airline industry for our customers, employees, creditors and other stakeholders. Together, ATA and AirTran will establish co-marketing programs and code share agreements across both carriers' flight networks.
As part of the agreement, AirTran intends to outsource to us the servicing of Chicago flights and pay us service fees over a specified transitional period. These transition arrangements will allow us a gradual, measured exit from Chicago, as well as provide the time and flexibility we need to develop and execute our reorganization plan and to optimize our fleet and plane sizes.
Reorganizing to emerge a stronger airline
Reorganizing will strengthen our business and competitive position, and give us the resources to emerge a stronger airline. Our plan entails optimizing our fleet and plane sizes and focusing on the most profitable cornerstones of its business: commercial flights routed through our Indianapolis hub, flights to Hawaii, military and some commercial charter service. We also intend to retain our Chicago Express connection service through Chicago Midway, as well as its Ambassadair Travel Club.
Business as Usual
We will continue operating business as usual while we reorganize and execute our arrangement with AirTran. As we transform, we will maintain our focus on serving customers with one of the youngest, most fuel-efficient fleets and providing value-based everyday, low fares and service that makes the travel experience easier and more affordable for all our business and leisure travelers. We will also continue to improve our services, such as retrofitting planes for business class service, which we expect to complete by early 2005.
Chicago Midway is an important and valuable hub for ATA. We employ hundreds of highly qualified and dedicated employees - ramp agents, flight and cockpit crews, customer service agents, aircraft mechanics - that provide a high level of passenger service, safety and security to thousands of passengers every day.
After the agreement with AirTran, Chicago Midway will continue to need hundreds of qualified and dedicated employees - ramp agents, flight and cockpit crews, customer service agents, aircraft mechanics. Our Midway employees are critical to the success of this transition and our collective future.
Just as importantly, we are committed to Indianapolis, which will continue to serve as ATAs headquarters location and primary hub. Indianapolis has been a key source of our growth, and we will remain in the city we have called home since 1973.
I know that you are all worried about the implications of this filing for you personally and your ability to do your job. Let me assure you that we are committed to paying employee salaries, wages and benefits without interruption and through the normal processes.
In order for us to stand by our customer commitment to business as usual, I ask you to continue providing the same high level of passenger service, safety and security as well as operational excellence. I am counting on everyone to continue providing that high level of service and value that our customers expect and appreciate.
Whats Next
Over the next few days we intend to finalize the details of our agreement with AirTran. In addition, as part of the reorganization we will continue to pursue necessary cost reductions across the company and implement a compelling plan of reorganization. ATAs operating costs are among the lowest in the industry but must continue to be addressed to achieve profitability.
As part of this process, we will look at every element of our operations. Once we have completed further work on a solid plan of reorganization, we will submit it to our creditors and the court for approval.
Keeping You Informed
We will continue to communicate openly and regularly, and to share information as it becomes available. We have created a special section on EWS to keep you posted of the progress we make over the next few months. You can find the link on the home page, as well as a link to the special section of ATA.com. In addition, we will continue to post a new issue of Info Line each week on EWS. And I am personally committed to communicating directly with you as we move through this process.
Again, let me say how much your unfaltering dedication and loyalty continues to impress me. Thank you for this commitment to ATA. Keep your heads up.
Sincerely,
GEORGE MIKELSONS
________________________________
Dear Colleagues:
Today marks a milestone for ATA as we begin our transformation into a refocused, streamlined and profitable airline. The steps we are taking will help assure our future for our employees, customers and the cities we serve.
Our parent company, ATA Holdings Corp. and certain subsidiaries, including ATA Airlines, Inc., have filed for relief under Chapter 11. This means we intend to restructure our debt and to continue business as usual. We will stand by our customer commitments, honoring tickets, upholding our full schedule, in-flight services and frequent flyer reward programs.
Along with the filing, we have reached an agreement with AirTran Airways, Inc in which AirTran will assume our flight operations, gates lease, and routes in Chicago Midway Airport as well as arrival and departure slots at LaGuardia Airport and Ronald Reagan Washington National Airport. The agreement, which needs the City of Chicagos approval, will take effect later this year or early next year, and is to be finalized over the next several days.
We are in continuing discussions with potential third-party lenders to procure Debtor-In-Possession (DIP) financing. Meanwhile, the ATSB has agreed to allow us continued use of our cash collateral, which, combined with the Companys projected cash flow from operations, should be sufficient to fund the needs of ATA and our operating subsidiaries until we reach an agreement for DIP financing.
Our agreement with AirTran is key to our transformation
By re-structuring and partnering with AirTran, we intend to re-create ATA as a formidable low-cost, albeit smaller competitor, capable of winning in todays airline industry for our customers, employees, creditors and other stakeholders. Together, ATA and AirTran will establish co-marketing programs and code share agreements across both carriers' flight networks.
As part of the agreement, AirTran intends to outsource to us the servicing of Chicago flights and pay us service fees over a specified transitional period. These transition arrangements will allow us a gradual, measured exit from Chicago, as well as provide the time and flexibility we need to develop and execute our reorganization plan and to optimize our fleet and plane sizes.
Reorganizing to emerge a stronger airline
Reorganizing will strengthen our business and competitive position, and give us the resources to emerge a stronger airline. Our plan entails optimizing our fleet and plane sizes and focusing on the most profitable cornerstones of its business: commercial flights routed through our Indianapolis hub, flights to Hawaii, military and some commercial charter service. We also intend to retain our Chicago Express connection service through Chicago Midway, as well as its Ambassadair Travel Club.
Business as Usual
We will continue operating business as usual while we reorganize and execute our arrangement with AirTran. As we transform, we will maintain our focus on serving customers with one of the youngest, most fuel-efficient fleets and providing value-based everyday, low fares and service that makes the travel experience easier and more affordable for all our business and leisure travelers. We will also continue to improve our services, such as retrofitting planes for business class service, which we expect to complete by early 2005.
Chicago Midway is an important and valuable hub for ATA. We employ hundreds of highly qualified and dedicated employees - ramp agents, flight and cockpit crews, customer service agents, aircraft mechanics - that provide a high level of passenger service, safety and security to thousands of passengers every day.
After the agreement with AirTran, Chicago Midway will continue to need hundreds of qualified and dedicated employees - ramp agents, flight and cockpit crews, customer service agents, aircraft mechanics. Our Midway employees are critical to the success of this transition and our collective future.
Just as importantly, we are committed to Indianapolis, which will continue to serve as ATAs headquarters location and primary hub. Indianapolis has been a key source of our growth, and we will remain in the city we have called home since 1973.
I know that you are all worried about the implications of this filing for you personally and your ability to do your job. Let me assure you that we are committed to paying employee salaries, wages and benefits without interruption and through the normal processes.
In order for us to stand by our customer commitment to business as usual, I ask you to continue providing the same high level of passenger service, safety and security as well as operational excellence. I am counting on everyone to continue providing that high level of service and value that our customers expect and appreciate.
Whats Next
Over the next few days we intend to finalize the details of our agreement with AirTran. In addition, as part of the reorganization we will continue to pursue necessary cost reductions across the company and implement a compelling plan of reorganization. ATAs operating costs are among the lowest in the industry but must continue to be addressed to achieve profitability.
As part of this process, we will look at every element of our operations. Once we have completed further work on a solid plan of reorganization, we will submit it to our creditors and the court for approval.
Keeping You Informed
We will continue to communicate openly and regularly, and to share information as it becomes available. We have created a special section on EWS to keep you posted of the progress we make over the next few months. You can find the link on the home page, as well as a link to the special section of ATA.com. In addition, we will continue to post a new issue of Info Line each week on EWS. And I am personally committed to communicating directly with you as we move through this process.
Again, let me say how much your unfaltering dedication and loyalty continues to impress me. Thank you for this commitment to ATA. Keep your heads up.
Sincerely,
GEORGE MIKELSONS
