ATA out of Midway??

[DemoBri1]

For those of you in the greater Chicagoland area it looks as though one of our favorite airlines that flies to MCO is on the brink of putting their assets up for sale at Midway.

ATA apparently is on the brink of bankruptcy, and it appears as though they have decided to put all their Midway assets up for sale. Here's a link to an article on the subject.

http://chicagobusiness.com/cgi-bin/news.pl?id=13645

Don't know what this is going to mean for those of us who have purchased tickets on ATA already. We're due to fly out on November 8th. Keeping my fingers crossed!!!

Will post further updates as I find them out.

Brian

 

[Maude4Disney]

aww crud. That doesn't sound good. We have flights on ATA thru Midway for Sept. 16 and had been hoping to book flights for our Feb. trip as well. Guess we'll have to start rethinking that one.

 

[HappyLawyer]

that sucks i was looking for ata at mdw now i guess it will be spirit

 

[BarbOKW]

Any idea on the timeframe for this. I need flights right after Christmas and I'm wondering if ATA pulls out is it possable that another airline would add flights to Orlando that quickly.

 

[sgtdisney]

Wow, that's kind of a surprise to me. I didn't think ATA would give up on Chicago so quickly or easily. Every flight I have ever flown on them to Orlando has been sold out. I was kind of worried that this could occur at some point though. They did grow very quickly and bought a lot of new planes when in the past they picked up older used planes. This will be a pretty good blow to Midway if they follow through with it.

 

[tinkerbellmagic]

I have flights out of ATA Midway for Nov and March. If ATA pulls out of Midway, will we have enough time to make other arrangements? Getting nervous here.

This is the link to the post on airlines/bankrupcy.
http://www.disboards.com/showthread.php?s=&threadid=629679

I don't know what to do about my Nov flight out of Midway, but according to this information on bankrupcy, I should try to get my money back for my March 2005 flight with ATA out of Midway, since it's so far off and I paid by cc card.

Thanks,
Tink

 

[inkkognito]

I just heard the news, and we have already purchased tickets on ATA for at least every other weekend up until December. Should be interesting to see if we just have a bunch of worthless reservations!
Barb

 

[dislvr75]

I've been following this ATA story since it aired here a few hours ago on the 4 o'clock news. I even called my travel agent, they had no idea. Anyway, I checked a number of financial sites, they indicated that they may try to get Southwest, Air Trans or Spirit to buy the 14 gates at Midway. If so, maybe those airlines will honor the tickets. I've already called my credit card company to see if they will help me get my money back if ATA stops flying out of Midway before my May 2005 Disney Cruise. The fares were SO low last week, I couldn't help but buy the tickets, maybe it really WAS too good to be true!! This is such a huge financial loss to the Chicago area, my guess is the City will step in and offer someone huge incentives to buy those gates and keep Midway airport afloat. Be careful though, the NBC5 reporter who aired the story earlier today said the employees are furious, and that they may come down with a case of "blue flu". This could mean serious problems for even current travelers in the next few days and weeks. I don't want anyone to panic but this is what they are reporting as a possibility here out of Chicago. Sorry.

 

[tinkerbellmagic]

dislvr75, Did your credit company say they will try to get your money back?

Thanks,
Tink

 

[dislvr75]

Actually they did. It happened to be Chase that I used to purchase the tickets. She said if I had trouble getting my money back, they would intercede on my behalf. HOWEVER, I did not specifically indicate whether I was going to try NOW and get a refund, while they are still flying, or whether I meant getting my money back after they are gone. I suspect that they will not interfere with rules regarding restricted fare tickets. Those rules probably still apply while they are still "operating". Once they indicate a date after which they will not fly, then maybe is when they will intercede. I must admit I did not specify which scenario I was going to follow seeing as though it was still rumor then, and no official announcement has come. I may call ATA and ask if they are giving refunds, in anticipation of their end of business out of Chicago. There may be no refund to be had though, if they sell to Southwest, tand assume al of their assets, they may just convert them to Southwest tickets without giving back any money at all.

 

[tinkerbellmagic]

Thanks so much for the reply. I called my cc company. It sounds rather bleak on getting my money back since ATA is still accepting reservations. They suggested I call ATA for starters and see what they say.

I am embarrassed to admit how much I spent on my tix for March. Losing that money will hurt big time. I did get a good deal on the Nov tix though.

It's the uncertainty that will drive me nuts.

 

[DemoBri1]

Sorry to start such a doomsday scenario. I find it extremely interesting that I cannot find out any other information on this supposed pull-out except at the crains article site which I posted earlier.

I haven't checked the Chicago TV station web sites yet, but as of early this afternoon they had nothing more on this story. I'm hoping beyond all hope that someone besides SW picks up the tickets and gates. Can't see myself flying SW with the first come first serve on seating. I want to at least have the ability to sit together with my family.

I'm wondering whether or not United might not want to throw Ted into the mix at Midway. United used to have quite a prescence at Midway before all the financial difficulties set in for Midway in the late 70s early 80s.

I did find it very interesting that ATA had no comment for the Crain's article. Don't know if that somewhat invalidates these claims or verifies it.

It should be an interesting few months. Let's keep our fingers crossed!

Brian

 

[tinkerbellmagic]

Ok, since my cc company instructed me to call ATA, that is exactly what I did.

Get this - the agent I talked to flatly denied ATA pulling out of Midway. I told her about the article and she said she knows there are rumors, but they are not true. I said, "So you are denying that you are pulling out of Chicago, Midway?" and she said rather snippily, "Why would we do that? Midway is our hub!" I asked for her name. She said her name was Sue. I asked for a last name and she would not give me her last name.

I do not know what to make of all this.

Tink

*eidted to add the link to Financial Times* - the article mentioned in the Chicago Business article linked to above.
http://news.ft.com/cms/s/b74ddda6-f56a-11d8-85e9-00000e2511c8.html

 

[goldilocks_63]

in the past.... trying to remember the airline, but it was chicago to Las Vegas...

well, at any rate, we ended spending 3 days at O'hare, before the officially declared bankruptcy (kept saying engine problems, etc)....

some other airline, I think either United or American, honored the tickets as they had room as a good will gesture for future business.

But if flights are really full, you may have to wait.... and wait.... and wait.....

So I would pack a carry on only, keep it with me, and pack a day lunch (airport food is icky and expensive).

Hopefully, it'll work out.

Also, maybe get a backup plan.

Like if plans fall thru, don't walk back to reservations desk etc.....
Get on cell phone, and make alternative transportation.

Maybe do a priceline (if you have a laptop), or get in car and drive. Believe me, driving can sometimes actually be quicker and easier.

Pixie dust to all us Chicagoians.

I have flown ATA, and it was one of my favorites.

And, if enough people pull out because they are afraid of losing money (understandably), it almost make going out of business a self - fufilling prophecy (like the stock market crash - give me money!).

So hopefully they'll get it together.

Best of luck to all.

(I wonder if that will make ticket prices go up?)

 

[dislvr75]

Hey Tink,

My guess is that the response you got was a bit of company spun postering. Who would want to admit that they are going under as you speak? I'm sure they want to hold on to what little value their stock still has, and creating a customer frenzy is certainly not going to help that! It troubles me thought that they are still taking reservations and selling tickets to perhaps unsuspecting people. I know that despite the rumors,they are still "operating", the question is for how much longer? I think the best we can do is try and follow this as closely as possible and when the news finally comes that its over, hopefully we'll be the first ones in line to get our money back!! I know the waiting and the uncertainly must be difficult for you. You are traveling a lot sooner than we are! I guess you could TRY and call United or one of the larger carriers and see if they would be able to honor an ATA ticket? If they don't sell to someone like Southwest, SOMEONE has to absorb all of the Midway-Orlando traffic, it would be a PR bonanza for the carrier who steps in to save everyone. Perhaps though all of the other airlines to too cash strapped to offer such a deal when they may not get much back from ATA for honoring the tickets. If I hear anything new I'll be sure to post.

 

[tinkerbellmagic]

Thanks for the replies.

dislvr75, you are so right. The ATA agent wasn't going to admit to anything. Then I begin to wonder why my cc company told me to ask them in the first place. The cc company had to know ATA wouldn't ever admit this on the phone to one of their customers.

Here is the dilema. We have x amount of days to file a claim with our cc company. Once those days are up (I think, for me, it's mid-October), I wonder if that means I can kiss the $ goodbye if ATA leaves Midway. We are talking a total sum of around $1400.00 for 4 flights (2 in Nov and 2 in March). Inkkognito, you must have a tidy sum tied up as well.

Oh well, I will settle down and like all of you, keep my eyes and ears open.

Thanks for listening,
Tink
********
Edited to delete some of my whining and also to say that CLTV had a crawl at the bottom of the screen saying "Chicago - ATA denies it is leaving Midway"

 

[inkkognito]

Indeed we do!
We have tickets for next weekend and the one after, two or three in Oct., and a couple more in Nov. Even with the cheap fares, that is a lot of money, not to mention that between my husband and I, we have something like 14 free companion tickets coming. I guess those would be a total loss. Oh well, at least we'll be able to get our money back for the flights via the charge card, but I think a pull-out by ATA is going to drive up the prices to MCO.
Barb

 

[sgtdisney]

The 10:00 news had a story on this tonight. ATA is strongly denying that they have any intentions of pulling out of Midway. It is true what the ATA employee is saying, Midway is ATA's largest base of operations. I can see them downsizing at Midway, but unless they are on the verge of going under it seems strange that ATA would completely pull out. What they also said is the employees here in Chicago flat out refused any givebacks or paycuts just in the last week or so. This could all be a carefully orchestrated move to put some fear into the 3700 employees who work out of Midway. It will be intersting to see how this plays out. I feel for you who hold tickets but I wouldn't get too upset yet, if it were me. You can always go back to your CC company if the airline actually goes under to get a credit back to your card. At least that is what I have been told in the past.

 

[Horace Horsecollar]

Originally posted by tinkerbellmagic
Get this - the agent I talked to flatly denied ATA pulling out of Midway.

The agent is stating the official ATA position. And the agent is stating the truth, at least for the time being.

Today, ATA issued a statement from ATA chairman J. George Mikelsons: "We are not abandoning Chicago Midway, nor are we canceling any flights." See "ATA denies reports it will exit Midway" at http://www.indystar.com/articles/7/172954-7837-102.html

Now let's look at the story about pulling out of Midway Airport...

According to Crain's Chicago Business, "ATA has hired investment banker Seabury Group to sell its 14 gates and other operations at Midway in order to raise cash, according to a story in Tuesday's Financial Times, a London-based newspaper."

Maybe the Financial Times story is true. Or maybe it is just a rumor without any real basis. Undoubtedly, ATA is considering many options to raise capital, reduce financial obligations, and improve overall cash flow. ATA is trying to avoid joining airlines like United in Chapter 11 bankruptcy. Service from Midway is an important part of ATA, so ATA won't just shut down their Midway operations. But if ATA could gain a substantial capital infusion, anything -- including the sale of their Midway Airport gates and operations -- is a possibility.

Even if the story is true, it will take many months before such a transaction is completed. Multi-hundred-million dollar transactions don't happen overnight. And when the potential buyers are other airlines, most of which are financially strapped, such a transaction happening at all is a long shot.

Last year, The Walt Disney Company hired a firm to sell the Disney Store chain. Finally, earlier this month there was an announcement that the Children’s Place Retail Stores had signed a nonbinding letter of intent to buy the chain in North America. And it's still not a done deal. Big transactions take time.

Also, if the Financial Times story is true, notice that ATA is trying to sell their operations at Midway. That means another airline would assume ATA's successful operations, such as ATA's well-established service between Chicago Midway and Orlando.

I'm not holding any ATA tickets, but if i were, I really wouldn't be too worried. It's likely to be business as usual for at least the next six months. Oh, they'll probably drop some routes, especially new routes that they only added on June 1 of this year. ATA can't afford to operate any routes that aren't drawing passengers. However, I especially wouldn't worry about Chicago Midway to Orlando.

Unfortunately, ATA is now going to have to spend a lot of money on damage control. As this thread indicates, there are now people convinced that ATA is backing the moving vans up to Midway Airport tonight and taking down their signs -- or that ATA will do so shortly.

 

[tinkerbellmagic]

Thanks for all the informative replies. My mind is a lot more at ease due to your post, Horace.

I am hoping we can all get thru our fall/winter vacations on ATA with ease. I am still worried about my March 2005 tix on ATA. I have never booked that far in advance and only did so because of Easter. You are so right, Horace, ATA sure will need to do some damage control.

Everytime I feel my confidence coming back about the airline, though, I remember Goldilocks three day nightmare at O'Hare - Wow, Goldilocks, what a bummer!

Tink