Today it’s ATA. I just flew a nice captain from ATA home yesterday. It didn’t seem he knew this was coming.
http://money.cnn.com/2008/04/03/news/companies/ata_bankruptcy/index.htm?cnn=yes
CHICAGO, Illinois (CNN) — ATA Airlines has ceased all flights as it files for bankruptcy, apologizing to its customers for the airline’s “sudden shutdown,” according to a company statement released Thursday.
The low-cost, charter airline based in Indianapolis, Indiana, filed for Chapter 11 status on Wednesday as a result of financial problems “following the loss of a key contract for our military charter business,” ATA said.
“Unfortunately, we were not in a position to provide our customers or others with advance notice,” ATA said.
The airline, founded in 1973, served major business centers – including Chicago, Dallas and Oakland – and popular vacation spots throughout the United States, including Hawaii, Los Angeles, Phoenix, and Las Vegas. The airline also operated as a leading carrier for the U.S. military.
It operated 29 aircraft, including Boeing 737-800s, Boeing 757-200s, Boeing 757-300s, DC10s and Lockheed L-1011s.
At the time of its shutdown, ATA employed approximately 2,230 people, including approximately 600 pilots, more than 800 flight attendants, and more than 100 mechanics.
So in the last few weeks and months we’ve lost Aloha Airlines, ATA, Champion Air, Big Sky Airlines, MaxJet and Skyway Airlines. Sun Country just announced that they are furloughing pilots as well. I have this uneasy feeling that this isn’t the end of closure and furlough announcements for this year.
By: Whiskey Delta - 4th July 2008 at 12:52
For those who believe peak oil will be coming sooner than later, how long can Hawaii’s tourism industry last since more than any other place, is reliant on air transportation? (i don’t think too many people want to take a boat ride there)
They do get a number of cruise ships daily to the islands but I agree that the oil prices are hurting the islands. They ran a story on the news here last week talking about the skyrocketing prices for food in Hawaii. A gallon of milk was $8 and orange juice was $14 a gallon. Everything isn’t quite at those outrageous levels but just the price of eating is WAY up.
By: RyukyuRhymer - 2nd July 2008 at 04:01
For those who believe peak oil will be coming sooner than later, how long can Hawaii’s tourism industry last since more than any other place, is reliant on air transportation? (i don’t think too many people want to take a boat ride there)
By: Whiskey Delta - 9th April 2008 at 18:21
Yeah, the started up only a year ago or so. They made an inital splash with their $10/seat price but they quickly disappeared from anyone’s radar after that. It always appeared as if their business plan was originally invisioned by someone who never ran an airline and/or never actually flew on an airliner…ever.
By: Ren Frew - 9th April 2008 at 02:39
Er… didn’t Skybus just start out fairly recently ? They were using Virgin USA planes for a while too weren’t they ?
By: Whiskey Delta - 5th April 2008 at 04:14
And other airline is gone in the US. Today it’s Skybus.
http://www.dispatch.com/live/content/business/stories/2008/04/04/skybust.html
Here’s the companies official press release.
Skybus Airlines will cease all operations effective Saturday, April 5.
Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment. These two issues proved to be insurmountable for a new carrier.
We deeply regret the impact this decision will have on our employees and their families, customers, vendors, suppliers, airport officials and others in the cities in which we have operated. Our financial condition is such that our Board of Directors felt it had no choice but to cease operations.
Passengers holding reservations for Skybus flights scheduled to depart on or after Saturday, April 5, 2008 should contact their credit card companies to arrange to apply for a refund. More information for customers and others will be made available on the Skybus web site (www.skybus.com) as it becomes available.
All flights for Friday, April 4 will be completed. Passengers holding reservations on flights for Friday, April 4 should check in for their flight at a Skybus kiosk at the airport instead of the Skybus website.
http://www.airliners.net/photo/Skybus-Airlines/Airbus-A319-112/1322870
They’re dropping like flies.
By: lukeylad - 4th April 2008 at 21:47
This is sad news I remember seeing there tristars at Gatwick great days 😎 Luke are you on about Jet2 buying there Tristars or DC-10’s?
James
Both! to expand the cargo side of there Bueiness! Its all they seem to do at NCL at the moment! Of course if they want to use them to haul pax i wouldn’t mind!
By: Manston Airport - 4th April 2008 at 13:39
Or Jet2.com could buy them! :dev2:
This is sad news I remember seeing there tristars at Gatwick great days 😎 Luke are you on about Jet2 buying there Tristars or DC-10’s?
James
By: Newforest - 3rd April 2008 at 21:59
Apparantly losing the military contract was the straw that broke the camels back.
By: J Boyle - 3rd April 2008 at 18:12
ATA did quite a bit of military charter stuff too.
I flew to the U.S. from Fairford in one of their L-1011s…nice flight.
By: Whiskey Delta - 3rd April 2008 at 15:57
They handled the Hawaiian flights for Southwest Airlines through their codeshare so it’ll be interesting how that void is filled. ATA did quite a bit of military charter stuff too. I’m suprised with the amount of business that stuff is getting right now that it wasn’t enough to keep ATA afloat.
By: lukeylad - 3rd April 2008 at 15:48
Wow i was not expecting ATA to go under! I thought they had that Mil contract under there thumb! Wonder who has it now then? Omni?
Sad to see the last Passenger Tristars in the USA going aswell! Hope the DC-10’s get taken on some where as passenger aircraft at least! Most likely to face either the scrap man or Cargo conversion!
Or Jet2.com could buy them! :dev2:
By: bmi-star - 3rd April 2008 at 14:42
ATA! A real shame for the US. Always thought them more as a holiday airline, but they seemed to build a good selection of scheduled routre lately. Again, a real shame!
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April 3, 2008 at 2:37 pm