Breaking: ATA Airlines files for bankruptcy protection

[TheWebHead]

SAN FRANCISCO (CBS.MW) -- ATA Holdings Corp. (ATAH) , parent of ATA Airlines, Tuesday afternoon filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Indiana, according to a court filing. Assets and debts total more than $100 million.
http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?guid=%7BC87479E4-0081-4588-A299-79D95728017A%7D&siteid=google&dist=google

[kysrsoze]

1. Wow, I thought they were doing OK compared to United and American

Looks like we'll eventually be down to Southwest only. Sheesh! Of course the economy is doing so well, so I'm not worried.

[Parche]

3. southwest

And Jetblue, Spirit, AirTran, America west,Alaska,
Northwest, Continental

Those are the airlines that are making $$$$$

[KDLarsen]

6. CO & NW making money?

That's news to me.. I thought it was mainly the LCC's that was earning money these days. I know that CO are starting some new routes, but that doesn't mean they're making money.

[Parche]

7. airlines

Continental made a little
NW lost a little, but still looks very good

[saigon68]

8. not Northworst

It will be in the tank soon

[amazona]

9. northwest recently hired a bankruptcy specialist

CO was one of the first airlines to threatene to declare bankruptcy after 911 and really it doesn't seem they would be making $$$ without gov't aid.

[SoCalDem]

2. They will be back as soon as the BK judge lets them out of the

pension/benefits arrangements with their employees..:(

[bushwakker]

4. Yet another business success story of the AWOL era

[KDLarsen]

5. Not surprising IMO

I heard something about ATA selling a lot of their assets (aircrafts) - not a good sign in the airline industry. Just look at Pan Am (the original) - they sold off a huge bunch of route rights before going under.

[reprobate]

10. I have NO money in airlines, and anyone who does will lose it.

I keep saying that the industry is on the long slide into death without more and massive gov't infusions of cash and credit.

Airlines are the MOST inefficient means of transportation. Most of the energy expended is used to counter the G force, which is why most of the industrial world is going to high speed rail. Cost per passenger mile or pound mile is much lower, energy expended is exponentially lower and cleaner, and time enroute is almost equal considering that airports have to be far removed from city centers but rail terminals can be almost right in the center.

The real difference, of course, has to do with the way we are governed. Since our gov't is run by the special interests and not the people, those with the most influence get their way. Look at the industries that support the airlines: Aircraft mfg, oil producers, food suppliers, etc, all of whom are contributers to campaign coffers.

The ancient greeks defined gov't corruption as favoring special interests over the welfare of the people. By thier definition, and they are the founders of democratic gov't, we are a truly corrupt nation.

[ozone_man]

11. It does look like a dying industry.

All of the major airlines will be forced into bankruptcy or paring down to core routes, like their small, specialized competitors. The price of fuel will hasten the demise of the airline industry.

Like you say, the corruption in our country is responsible for preventing us from having high speed rail like the rest of the developed world. The auto industry subsidy for all of these years and the neglect of public rail is the other prime transportation example. Just another symptom of the decay and decline of the "American Empire".

[chaumont58]

12. Good post!

It would seem obvious that the physics involved make it absolutely the least efficient way to travel. I would like to see a study of travel along corridors such as LA to SF Bay Area of high speed rail vs air.
Aside from that, I don't travel much. I'm retired, so I have no business need, but if I did, I would still hate flying. Big aluminum buses with people packed in seats like so many sardines. People from California might remember the old regional airline, PSA. They flew up and down California. And made money, I think. Mostly no frills. US Air bought them when airline dereg started. US Air immediately put in a first class section, something PSA never had. Before long, their share of the market dropped to nothing, and US Air pulled out of LAX. Fools.
The old style do-all, be-all airlines are as dead as my grandfathers.