Two more US carriers bite the dust

Very sad news really.

Aloha Airlines ceased trading on Monday.

ATA (American Trans Air) have now ceased trading today.

So with the T5 mess, the IBFT's maybe leaving VS and this news, its not been a good week for the industry at all.

Now looks like a mixture of Hawaiian and GO! will take over the Aloha routes.

Am guessing that ATA charters will be taken over by World or Omni Air. No idea on the scheduled routes though.

[Scrooge]

ATA were told they would not be awarded any charters by the US military, from what I am hearing UA and NW have bid for them as well as Omni and World.

Originally posted by Scrooge
ATA were told they would not be awarded any charters by the US military, from what I am hearing UA and NW have bid for them as well as Omni and World.

So can we deduce that, as this was there bread and butter, it has caused them to go belly up!?!?

Did they a couple of months ago hand over the running of their Hawaii services to someone else as well?

Its three gone! Champion also

[Scrooge]

They were in a code share with WN on the Hawaii routes, the military charters were what were keeping them afloat, with them gone there was no option but to fold....

Originally posted by Scrooge
They were in a code share with WN on the Hawaii routes, the military charters were what were keeping them afloat, with them gone there was no option but to fold....

As I thought. IIRC ATA used to do quite well out of the UK charter market back in the early 90's. I certainly remember flying them over the pond to MCO via Bangor I believe. Will be a very sad loss.

[mcmbenjamin]

Well this is good for WN from an operational viewpoint. And good for the shareholders of US carriers as less seats normally (well under normal economic conditions) lead to increasing fares, revenues.

Another one goes: Skybus

Heck Bill, you are like the airline Grim Reaper.

And another, Paul - Frontier

Its the Credit Crunch that's the Grim Reaper: Press Release

Originally posted by Bill S
And another, Paul - Frontier

Its the Credit Crunch that's the Grim Reaper: Press Release

Not really.

They are still flying. All they have done is ask for Chapter 11 security from the government. No different to United, US (twice), Delta and Northwest, about 5 years ago. You can still book flights etc.

Originally posted by willd

Originally posted by Bill S
And another, Paul - Frontier

Its the Credit Crunch that's the Grim Reaper: Press Release

Not really.

They are still flying. All they have done is ask for Chapter 11 security from the government. No different to United, US (twice), Delta and Northwest, about 5 years ago. You can still book flights etc.

I doubt this Ch11 will last that long as the complex Ch11 cases of the majors.

My guess is that the credit card processor has worked out that by hanging on to receipts for a couple of days in the clearing system, they can actually make a bit of money. Either that or the credit card processor has a liquidity issue of their own?

This Ch11 filing has been done to act as a firebreak, to protect Frontier from it's suppliers' actions.

If this is just a short term cashflow issue, I wouldn't expect this Ch11 to last long than a few months, just long enough for Frontier to reorganise their cashflow requirements.

Frontier seem a pretty good operation, so I'd like to see them still around for a while!

Mike