ATA Airlines Out Of Business
Apr 3, 2008, 5:12 am
#1
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ATA Airlines Out Of Business
http://cbs2chicago.com/local/ata.out....2.691008.html
ATA Airlines announced Thursday morning it is shutting down all operations and canceling all current and future flights.
The airline shut down operations as of 3 a.m. Thursday morning. Customers who arrived for flights at Midway International Airport were turned away Thursday morning, while employees who showed up for work were told they were no longer needed.
ATA Airlines announced Thursday morning it is shutting down all operations and canceling all current and future flights.
The airline shut down operations as of 3 a.m. Thursday morning. Customers who arrived for flights at Midway International Airport were turned away Thursday morning, while employees who showed up for work were told they were no longer needed.
Apr 3, 2008, 5:32 am
#2
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As of 6 a.m. local TV news reported no employees at MDW, and none expected to show up. They said the company announced that NO refunds will be given. Pax who paid with credit cards can talk to their credit card company, pax who paid cash are SOL. I assume the employees will get stiffed on their final paychecks too.
Apr 3, 2008, 6:01 am
#3
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Employees may have to wait a bit, but payroll is first in line for liabilities to be paid. Before creditors, bondholders, preferred stock, shareholders... There may be enough value in assets to cover this employee obligation.
Apr 3, 2008, 7:17 am
#4
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Apr 3, 2008, 7:39 am
#5
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So theyy lost a military charter contract and are out of business. Was this possibility discussed prior to this happening? Their site seems to suggest that they kept the possibility of bankruptcy under wraps until...well until they had to close shop.
Following the loss of a key contract for our military charter business, it became impossible for ATA to continue operations. Unfortunately, we were not in a position to provide our customers or others with advance notice.
Apr 3, 2008, 8:53 am
#6
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I was always told that the lawyers get paid first. Either way, bad news for everyone.
Interestingly, both Obama and Clinton were using ATA for their campaign charters. But Obama's plane stopped moving around about 10 days ago. What are the odds they were tipped off to the impending doom?
Interestingly, both Obama and Clinton were using ATA for their campaign charters. But Obama's plane stopped moving around about 10 days ago. What are the odds they were tipped off to the impending doom?
Apr 3, 2008, 9:42 am
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That's a rather interesting view of the Bankruptcy Code. After administrative expenses (costs of winding-up business and liquidating, trustee fees, bankruptcy advisors like Debtor's counsel) and certain tax priority claims, secured creditors come first, then general unsecureds, and shareholders are last. Employees are general unsecured creditors.
Apr 3, 2008, 10:03 am
#9
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That's a rather interesting view of the Bankruptcy Code. After administrative expenses (costs of winding-up business and liquidating, trustee fees, bankruptcy advisors like Debtor's counsel) and certain tax priority claims, secured creditors come first, then general unsecureds, and shareholders are last. Employees are general unsecured creditors.
Secured claims may trump administrative claims if the security has to be sold, and there may have to be a "carve out" deal with the secured creditor so that the estate administer the secured property. I also invite you to review 11 USC §507(a) for priorities, including (a)(4), which will show you that employees are not general unsecured creditors, to a certain extent (and would cover most employees for getting stiffed a couple months of pay). It is one of the top priorities, actually.
Apr 3, 2008, 11:20 am
#11
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Sorry.
Their FF program is shut down and liquidated, the miles have no value.
Apr 3, 2008, 11:37 am
#12
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ATA has filed for bankruptcy protection. Bankruptcy law freezes assets and prevents companies from paying pre-petition liabilities, which in this case, includes unused FlightBank credits. Information about submitting a claim for unused FlightBank credits will be available at: http://www.bmcgroup.com/ataairlines or by calling (888) 909-0100. Such a filing does not guarantee a refund and the process may take a long time.
Apr 3, 2008, 11:43 am
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http://cbs2chicago.com/local/ata.out....2.691008.html
ATA Airlines announced Thursday morning it is shutting down all operations and canceling all current and future flights.
The airline shut down operations as of 3 a.m. Thursday morning. Customers who arrived for flights at Midway International Airport were turned away Thursday morning, while employees who showed up for work were told they were no longer needed.
ATA Airlines announced Thursday morning it is shutting down all operations and canceling all current and future flights.
The airline shut down operations as of 3 a.m. Thursday morning. Customers who arrived for flights at Midway International Airport were turned away Thursday morning, while employees who showed up for work were told they were no longer needed.
She was supposed to fly to one of the other islands on Aloha yesterday, too. Who else is going to file bankruptcy on her this trip?
Apr 3, 2008, 12:08 pm
#14
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some upside
There shouldn't be a shortage of pilots soon, not that there was before.
I read that something like 50% of all commercial pilots will retire within the next 10 years.
When SWA goes out of business then I know it's time to stop traveling and move to Australia or Ireland.
I read that something like 50% of all commercial pilots will retire within the next 10 years.
When SWA goes out of business then I know it's time to stop traveling and move to Australia or Ireland.
Apr 3, 2008, 1:01 pm
#15
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That is just crazy, glad you are able to get her home!