ATA files for bankruptcy, ceases all operations

by Grant Martin on

Passengers flying on ATA Airlines today are in for a surprise when they get to the airport. This morning, with practically no advance notice, the Indianapolis-based airline announced that they had declared bankruptcy, canceled all flights and ceased operations.

The cause of their collapse, in addition to the obvious stratospheric jet fuel prices, was in the loss of a key military contract that they had been relying on to maintain operations. Between those and and an extremely competitive market, the airline could no longer operate in the black.

Passengers in ATA’s hub cities, Chicago, San Francisco (Oakland), and Honolulu will be the most affected by the cancellations. If any of you have reservations and booked with a credit card, ATA suggests that you contact your credit card company for a refund. But if you paid by other means, you may have to jump through a few extra hoops before you get your money back; as our friends at Elliott.org write this morning, you’re going to have to file a claim in ATA’s Chapter 11 proceedings if you ever want to see part of that money again.

And so comes to close another small American budget airline, pushed out of business by high oil prices, competition and operating costs in a market that was just too tight to sustain it. With the collapse of the airline goes 2,200 employees, 29 aircraft and 35 years of hard work.

Farewell.

Aloha Airlines files for Chapter 11 bankruptcy

by Grant Martin on

It looks like oil has taken its latest victim in the airline industry: Aloha Airlines just announced that they’re applying for Chapter 11 bankruptcy. Citing outrageous oil prices and “predatory” competition of inter-island carrier “go!”, the Hawaiian airline is now seeking financing to keep operations and logistics going while they reorganize.

I’m not too sure what the history is between Aloha Airlines and go!, but Aloha definitely isn’t very happy. Said David Banmiller, their CEO on the affair:

“It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action”

In case you were already booked on Aloha Airlines, operations are supposed to continue for the near term. If the bankruptcy court ends up pulling the plug though, things are going to grind to a halt pretty quick, so be ready to cash in your chips and look into an alternative airline. Luckily, there is plenty of competition on the inter-island routes.

Check out the website’s FAQ on their chapter 11 filing here.

We Hope NWA Treats Its Passengers Better…

by Iva Skoch on

CNN Money ran it’s 101 Dumbest Moments in Business site again this year. #2 was unbelievable. Apparently, just before laying off 4000+ more workers mid-last-year during its bankruptcy, Northwest Airlines handed out to its employees a guide for saving money: 101 Ways to Save Money.

The guide had in it suggestions such as #46 “don’t be shy about pulling something you like out of the trash.” Or, shred newspapers to make cat litter (or was it in-flight food?), make your own baby food, and take walks in the woods to save money on a date. Another favorite: (#15) “Get hand-me-down clothes and toys for your kids, from friends and relatives.”

Here’s hoping that nice blanket, pillow, and mixed nuts you enjoyed last flight weren’t the result of a dumpster-dive.