ATA Closes Operations, Files Chapter 11 -- Transportation, Midw...

ATA Airlines shut down operations and stranded thousands of travelers Thursday when an unexpected loss of key charter flights and soaring fuel costs forced the carrier into bankruptcy.

[kent]

The greed environment (anti-consumer) is so bad right now that it's taken for granted that an airline declaring a chapter 11 can't even honor one day of obligations to its customers and leaving them stranded. If it ever wants to start anew I hope that the shafted customers and everybody for that matter will take their business elsewhere.

[Amazing]

This is the same ATA that was pushing to buy Milwaukee based Midwest less than a year ago.

How were they going to float that if less than 1 year later they are filing for bankruptcy protection?

[EX-NWA FA]

Amazing wrote:

This is the same ATA that was pushing to buy Milwaukee based Midwest less than a year ago.
How were they going to float that if less than 1 year later they are filing for bankruptcy protection?

no, that was air tran, this was american trans air. 2 different operations

[Prospective Pax]

Very no-class of ATA's board of directors not to mention anything about their airline's folding. Those guys better not put anything ATA-related on their resumes. And if they do, I hope they spend a LONG time looking for a job. Those guys are perfect examples of why managers and owners in America have a bad name.

Agreed

I'm sure all of the top execs are walking away with millions in their pockets.
I agree 100%! Did you notice how the article said "virtually all" employees lost their jobs.

You can bet the ATA CEO got a fat exit bonus for this.

This is true... I think they are being given the term "key employees" by the management conspiracy running the show.

Well, ATA just ruined my vacation plans to see my son for the first time in 3 years! Had I known I would have booked on another airline. I worked for almost a year to scrape together the airfare for Hawaii and now it's gone....I'm going to miss the birth of my granddaughter too....THANKS A LOT ATA

the hedge fund that runs Global Aero Logistics ATA ruined your reunion... I am sorry but the people of ATA Airlines did not. THANKS ALOT GLOBAL AERO LOGISTICS.
So sorry to hear of this.... pleas consider a class action lawsuit against MatlinPatterson hedge fund.

Wow.
I assume that they spoke with a legal team before following through with such actions; as such I am afraid that this might be a legal thing to do, no accountability to customers and employees.

Even then if it is legal, it still seems unethical to do something like that.

So true!

[Prospective Pax]

Ahhhhhh.....

If Only ATA Airlines had been operating under the Name: Bear Stearns Airlines....

But, then they don't have that cozy New York Connection, do they ????

Who is MATLINPATTERSON / Matlin Patterson - are they the same owners of Global Aero Logistics - World Airways and Global Aero Logistics - North American Airlines?

With ATA

"You're on PERMANENT vacation"

!!!

(; cute one but a sad one too

I'll bet that Hillary got the call at 3AM that ATA was going under. She then proceeded to go back to sleep!
I can't believe that ATA was still selling tickets the day before they folded. What a bunch of crap.

Yes it is... I always thought it was a bit of a conflict of interest with this company (ATA)which was so commited to the AMC troop movement flights to be flying around the Democrat Candiates which seem to have so much contempt for the troops.

Now these same Democrat candidates seem to have just as much or equal contempt for the loyal employees of Global Aero Logistics ATA by continuing to use Global Aero Logistics North American Airlines which is all the same company.

Sounds like people need to actually do something about this -- like filing a class action lawsuit

How can ATA get away with accepting airfare knowing they were going under? Then to have the nerve (to put it lightly) to call a residence asking for more money the day before this came to be known. Now these people have to fight to get their refunds...that's criminal activity.

Direct the class action lawsuit to the hedge fund company finanacial investment firm Matlin Patterson's Global Oppurtunties Fund II. They could have directed their other companies flight operation to accomodate the stranded passengers by rerouting them on World Airways or North American Airlines charter aircraft.

AMR and American Airlines and American Eagle Airlines do this for their stranded passengers all the time and even on other none owned airlines

[Prospective Pax]

It's so sad for the passengers and even more for the employees..I wish them the best and to find a new and better jobs...

American Airlines really helped us out as we attempted to get to Midway after our flight was canceled from HONOLULU as ATA call it quits...Thank American Airlines

That is kind of you. I am aware of a few people who are involved with this through my consulting work.

Thanks AAers... TZ frontline (;

i understand the loss to these people with the jobs. I think the company should have done more for the customers though. My husband was enroute home after being deployed to Iraq and he is sitting, waiting for a flight home. the airline posted a sign saying there should be a flight sometime monday (72 hour hold)but if they are shut down, how is that going to happen. with his cercumstances, he cannot fly a normal flight, so how will he get home? his military orders and tomorrow.

From personal knowledge of ATA Airlines... I know the employees of this company would have done anything in their power to have reunited you with your loved one. I have routinely heard of stories of crews being about aircraft with military passengers for longer than 22 hours when weather or mechanical issues intervene.

This was a Matlin Patterson Global Aero Logistics decision.... the inconvinience could have been prevented.

stop raggn on the poor uninformed pax. ATA mngt should have told everyone the were ending operations in 24 hrs like PAA did. But why should mngt care anyway, they aren't walking away empty like the employees.

well at least you still have a job as we the ata employees who knew nothing about our airline going out of business do not, and united and has the same fare as we did!

So sorry to hear of this. I am sure your individual commitment and pride the people and employees of ATA displayed will carry you a long way in your future endeavors. Have faith and remember the good times.

[Prospective Pax]

I nearly cried yesterday listening to NPR's interview of an ATA pilot who didn't know he had lost his job until he showed up at Midway and his access badge didn't work.

...and now the ATA execs are telling both the employees and the passengers to suck it up, while they make out gangbusters. Since when did "people before profits" become fighting words in this country?

I am sure American Trans Air employees are greatful for your compassion

And what about the employees? No warning at all! No hint that their jobs were about to be gone! Now they have no job, no money, no insurance, but they have living expenses that continue whether or not they are working. It isn't just a matter of "tightening the belt" because there is no belt to tighten. ATA handled this very poorly. I understand the thought of letting people know two weeks ahead and not having customers for those two weeks, but what about the employee whose house payment is due and they have no income. I hope the employees file a class action suit against ATA for this poor management decision of how to deal with the problem

I hope they do file a class action lawsuit against ATA Airlines owners and who are the Matlin Patterson hedge fund... and the rest of Global Aero Logistics all the same party.

The creditors of ATA also need to file the class action lawsuit against the Matlin Patterson and Global Aero Logistics holding company for destroying any value the ATA Airlines name had for potential sell of the certificate and airlines identity..... what a tragic loss for the industry.

[Jamez]

I certainly hope that there is a class action brought against these crooks. I was affected by the game they are playing. I booked 5 tickets in December of 07 for Hawaii to fly on April 12th. I just had to repurchase the tickets through US Airways for a substantial amount more since they are last minute flight arrangements. It ended us costing me double to fly. The other airlines were basically feeding off the frenzy this caused. I know that Northwest would do nothing to help. US Air offered standbye tickets until the 10th. None of which is acceptable obviously when your taking 5 different flights. I got my problem resolved but it did cost alot of money to fix it, not to mention 7 hours on the phone. I might add that I had booked initially with Expedia, they were useless through the whole ordeal. Never again will I use them.

[Fly By]

I had a ticket with ATA on a flight for next Friday. I am interested in pursuing a group-action lawsuit with other ticketed passengers against Matlin Patterson Global. How do people go about doing this?

[call me Al]

Fly By wrote:

I had a ticket with ATA on a flight for next Friday. I am interested in pursuing a group-action lawsuit with other ticketed passengers against Matlin Patterson Global. How do people go about doing this?

Well you don't go about doing this on a site like this! LOL....

why don't you google class action suits, maybe there is already one in the making.

If not contact a lawyer in the field.

[Shelly]

I was in Hawaii when I heard of ATA canceling all flights. The other airlines took total advantage of us and charged over $1,200 one way. I had only paid $1,200 round trip for two of us. To get four of us home it cost us $5,000. My understanding was that ATA knew they would be shutting down back in January. How can they not be forced to pay back their debt when they were still selling tickets up to the last minute. And how is it the other airlines were allowed to jack their prices up instead of helping us out?

[EX-NWA FA]

for $100 each segment of your journey you could have flown stand by on northwest. how is that taking advantage of you? sorry, but you chose to buy a ticket on an airline that was unstable, and you saved a bunch doing it i am sure. had you stayed with a stable airline, your fare may have been a bit higher, but consider it travel insurance, and you would have gotten home on time.
sorry you had to learn the hard way.

[NWARETCAPT]

Shelly wrote:

I was in Hawaii when I heard of ATA canceling all flights. The other airlines took total advantage of us and charged over $1,200 one way. I had only paid $1,200 round trip for two of us. To get four of us home it cost us $5,000. My understanding was that ATA knew they would be shutting down back in January. How can they not be forced to pay back their debt when they were still selling tickets up to the last minute. And how is it the other airlines were allowed to jack their prices up instead of helping us out?

Shelly, I just checked to see what it costs to fly from HNL to DEN, and the cost of a one way ticket is approx.$1,200. You probably bought a ticket that was an economy package on ATA. Why would the other airlines be obliged to "help" you with a cheaper fare than their going rate? How are they taking advantage of you? This is the time of year that they are carrying heavy loads, so why would you expect them to give you a seat for $600 when they can easily get $1,200?

Maybe the reason ATA went out of business is that they were not charging enough for their tickets to begin with.

Let's say you purchased a new flat screen TV from a store with money down. The store goes out of business before you receive your TV. Would you expect another store in town to honor the contract you made with the store that went out of business and deliver you the TV that the first store failed to deliver to you? I think you'd have a problem convincing the other store to deliver.

It would be nice if you could get your money back from ATA, but I suspect there is a long line you will have to get at the end of to collect.

[EX-NWA FA]

NWARETCAPT wrote:

<quoted text>
Shelly, I just checked to see what it costs to fly from HNL to DEN, and the cost of a one way ticket is approx.$1,200. You probably bought a ticket that was an economy package on ATA. Why would the other airlines be obliged to "help" you with a cheaper fare than their going rate? How are they taking advantage of you? This is the time of year that they are carrying heavy loads, so why would you expect them to give you a seat for $600 when they can easily get $1,200?
Maybe the reason ATA went out of business is that they were not charging enough for their tickets to begin with.
Let's say you purchased a new flat screen TV from a store with money down. The store goes out of business before you receive your TV. Would you expect another store in town to honor the contract you made with the store that went out of business and deliver you the TV that the first store failed to deliver to you? I think you'd have a problem convincing the other store to deliver.
It would be nice if you could get your money back from ATA, but I suspect there is a long line you will have to get at the end of to collect.

ret capt....i agree with this post 100%....good post! i know it sucks she lost her $$$, but i wonder why folks get mad at the other airlines, when ata is the one they should be upset at. chalk it up as a lesson learned and move on. the dice were rolled, but didn't come up the way she wanted them.

[Rogerg]

This Vulture needs a court date.
http://www.forbes.com/forbes/2002/0930/400337...

[Money Maker]

As i understand it.

If you are holding a NW ticket with both ATA and NWA (usually booked online) NW will accept the ticket and waive the adv purch and change fee...however you would be responsible for the fare difference.

If you are holding a ATA ticket with ATA and NW space...NW is not accepting the ticket and you would have to apply for a refund through ATA but they will sell you a new ticket waiving the advance purchase price based on availability.

If you are holding an ATA ticke with NO NW space. NW is allowing you to fly standby for a $100 or you can fly conf in a certain class for $200 one way.

I am surprised that any airline is accepting tickets as it will be hard pressed for them to recoupe any monetary amounts from ATA.

As for Skybus passengers ....good luck to you as i dont believe any airline will accept those.

Be aware though that this time of year is spring break for a lot of people and the flights are jammed packed and it will be difficult to find a last minute low fare.

Remember though if you contact another airline and they cant help you ....dont be rude to them as it is based on availibility and its not their fault if the flight is full....remember you chose to fly on a discount non main carrier and you threw the dice and you crapped out.

good luck to you all....remember to book with a major carrier next time.

[Ex Eastern]

I heard a NASTY rumor that Frank Lorenzo is associated somehow with Global Aero Logistics. Does anyone know if there is any truth to this rumor? I also heard that this same company tried to buy up all available Southwest Airlines stock last year.

[Old NWA Guy]

Ex Eastern wrote:

I heard a NASTY rumor that Frank Lorenzo is associated somehow with Global Aero Logistics. Does anyone know if there is any truth to this rumor? I also heard that this same company tried to buy up all available Southwest Airlines stock last year.

No, Frank Lorenzo is hiding out in Afghanistan with Osama Bin Laden. This is the rumor I heard and I believe it makes as much sense as yours

[East Coast Girl]

Ex Eastern wrote:

I heard a NASTY rumor that Frank Lorenzo is associated somehow with Global Aero Logistics. Does anyone know if there is any truth to this rumor? I also heard that this same company tried to buy up all available Southwest Airlines stock last year.

He seems to cover his tracks very well. You would have better luck sighting Whitey Bulger.

[Fly By]

Yes, just as the ex NWA employees above have written: book with a major airline or main carrier or non-discount carrier next time and (you) won't have these problems such as the ATA closing. Hmmmm...let's see, isn't American Airlines a major carrier? Great advice, fellas! Yes, the airline industry is so stable now, isn't it! Did somebody say, "Standed passengers?" And as far as people knowing that an airline is having finacial difficulty, one would have to have closer than usual ties to the industry, such as the retired NWA people who have posted above. Regardless of how one looks at it, selling tickets on flights with no intention of conducting those flights is fraudulent business practice. It's so typical of people to want to blame anyone but the business, in corporate America! Who is surprised? Nobody.