Southwest possible Codeshare with ATA?
Dec 10, 2004 | 1:36 pm
#1
Original Poster
Join Date: Oct 2004
Location: West Coast
Programs: TAM Fidelidade Blue Level, Southwest RR,
Posts: 203
Southwest possible Codeshare with ATA?
Hopefully, this will be a win/win situation for both carriers. Especially for the thousands of employees at ATA.
Comments anyone?
Chicago Midway (MDW): Southwest to Submit Bid for Some ATA Assets at MDW Posted on Fri, 12/10/04 07:00
Later today, Southwest will formally submit our bid in the federal bankruptcy court of Indianapolis for certain ATA Airlines, Inc. (ATA) assets, including a commitment to connect and exchange passengers with ATA, and various financing agreements. Total cash consideration and financing in the ATA bid will exceed $100 million. Southwest's bid includes the acquisition of six Chicago Midway Airport (MDW) gates currently under lease to ATA. The addition of these six gates increases Southwest's capacity by 32 percent, supporting further expansion plans.
As part of the bid, Southwest is willing to enter into a code share agreement with ATA, covering certain flights from MDW to approximately nine ATA domestic nonstop destinations. The code share, which will commence next year, could generate additional annual revenue in the $25 to $50 million range for each airline. Southwest estimates our annual traffic would grow, overall, approximately one percent as a result of the proposed code share.
"We are very excited about the opportunity to grow further at Chicago Midway Airport, by acquiring necessary airport gates and by code sharing with ATA," said CEO Gary Kelly. "This proposal is certainly good news for air travelers, as we continue to expand our flights and low fares from the new and improved Midway Airport. We believe the proposal is good for Southwest and the city of Chicago. Finally, we believe our bid provides a superior reorganization opportunity for ATA and its stakeholders compared to the bid from AirTran Airways."
Under the federal bankruptcy court's supervision, an auction will take place next week along with hearings to determine the disposition of ATA's assets and liabilities. Due to the competitive nature of the airline industry and the bidding process, no further details will be made available until the final bid is awarded.
Southwest has the strongest balance sheet in the airline industry. We are the only airline that has been consistently profitable, even in the aftermath of September 11, 2001, and we have been profitable for 54 consecutive quarters and annually since 1973. Southwest currently offers 145 daily flights out of Chicago Midway, and had previously announced the addition of 25 more flights to begin before mid-year 2005. We employ more than 2,500 people in Chicago at our Pilot Base, Flight Attendant Base, Maintenance facility, Provisioning facility, People Department, Marketing office, and Reservations Center. Midway is currently the fourth largest operation in the Southwest route system, and by mid-year 2005 it will be our third largest point of operation with the addition of new flights announced earlier.
Comments anyone?
Chicago Midway (MDW): Southwest to Submit Bid for Some ATA Assets at MDW Posted on Fri, 12/10/04 07:00
Later today, Southwest will formally submit our bid in the federal bankruptcy court of Indianapolis for certain ATA Airlines, Inc. (ATA) assets, including a commitment to connect and exchange passengers with ATA, and various financing agreements. Total cash consideration and financing in the ATA bid will exceed $100 million. Southwest's bid includes the acquisition of six Chicago Midway Airport (MDW) gates currently under lease to ATA. The addition of these six gates increases Southwest's capacity by 32 percent, supporting further expansion plans.
As part of the bid, Southwest is willing to enter into a code share agreement with ATA, covering certain flights from MDW to approximately nine ATA domestic nonstop destinations. The code share, which will commence next year, could generate additional annual revenue in the $25 to $50 million range for each airline. Southwest estimates our annual traffic would grow, overall, approximately one percent as a result of the proposed code share.
"We are very excited about the opportunity to grow further at Chicago Midway Airport, by acquiring necessary airport gates and by code sharing with ATA," said CEO Gary Kelly. "This proposal is certainly good news for air travelers, as we continue to expand our flights and low fares from the new and improved Midway Airport. We believe the proposal is good for Southwest and the city of Chicago. Finally, we believe our bid provides a superior reorganization opportunity for ATA and its stakeholders compared to the bid from AirTran Airways."
Under the federal bankruptcy court's supervision, an auction will take place next week along with hearings to determine the disposition of ATA's assets and liabilities. Due to the competitive nature of the airline industry and the bidding process, no further details will be made available until the final bid is awarded.
Southwest has the strongest balance sheet in the airline industry. We are the only airline that has been consistently profitable, even in the aftermath of September 11, 2001, and we have been profitable for 54 consecutive quarters and annually since 1973. Southwest currently offers 145 daily flights out of Chicago Midway, and had previously announced the addition of 25 more flights to begin before mid-year 2005. We employ more than 2,500 people in Chicago at our Pilot Base, Flight Attendant Base, Maintenance facility, Provisioning facility, People Department, Marketing office, and Reservations Center. Midway is currently the fourth largest operation in the Southwest route system, and by mid-year 2005 it will be our third largest point of operation with the addition of new flights announced earlier.
Dec 11, 2004 | 10:55 am
#3
Join Date: Jun 2004
Programs: NW Plat, Marriot Gold, National Exec.
Posts: 67
This one kind of shocked me. It would be a real break from Southwest's model of operations.
IMO, Airtran buying ATA and Southwest getting some of the Midway gates would be ideal for competition. We'll see what happens.
IMO, Airtran buying ATA and Southwest getting some of the Midway gates would be ideal for competition. We'll see what happens.