ATA is planning massive service cuts, including eliminating flights from its Indianapolis base, and has hinted at changes in its post-Chapter 11 business plan.
In January, the airline plans to cut four daily flights from Chicago Midway and Phoenix to Denver, markets code-share partner Southwest plans to serve from Denver early next year. Daily flights between San Juan, Puerto Rico and Chicago Midway and Orlando also end the same month.
Although ATA plans to keep its headquarters in Indianapolis, service from the city to Fort Myers, Orlando, Las Vegas, Honolulu, Maui, and San Juan ends in January.
ATA reasoned that Ted, Frontier and now Southwest are making competition intense in Denver, and it noted that all the adjustments would "strengthen our position" in building the right framework to emerge from Chapter 11, ATA executives said.
The makeup of that framework is somewhat of a mystery. In a filing earlier this week, ATA said that since it sent documents detailing its plan for emergence to potential investors in August, it has revised that plan. The latest version, which is not public, is what's being shopped around to potential investors. Earlier this year, ATA said it was trying to secure $100 million to complete its restructuring (DAILY, Sept. 29).
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