TC

Family has booked ATA from IND to Cozumel for February. What are the chances that ATA will be out of business by then? Reading lots of bad press about financial trouble. Anyone know? Any information about what one does if the airline goes out of business or cuts the route you've booked? I've (luckily) never had this happen. Does travel insurance cover such situations? Would insurance only reimbursed the price of the ATA ticket (cheap) or the price of a new ticket to the destination (very expensive if at the last minute)?

gail

I know of no insurance that will cover you for an increase in price.

Your credit card is a free resource for monetary compensation. Nothing will take care of the aggravation, ruined plans, etc.

CarolA

This might be of interest.

From About.com and I have no researched the underlying law

Other airlines have some obligation to help you in a bankruptcy pinch.
You don't have time to worry about a credit card refund. You need to go to your ticketed destination.

You want another carrier running the same route to take you there. Are they required to do so?

The answer is "yes," but with some qualifications.

The recent Vanguard bankruptcy prompted the U.S. Department of Transportation to provide guidance for both airline and consumer. To summarize, Section 145 of the Aviation and Transportation Security Act obligates those surviving carriers to honor tickets from insolvent airlines "to the extent practicable."

But many consumers complainted to the USDOT because they were dissatisfied with that service, or were charged "additional fees" of $100 USD to fly standby.

The USDOT suggests some fees are inevitable, but they should not exceed $25 each way.

There is also a provision that allows consumers up to 60 days from time of bankruptcy declaration to make these other arrangements.

Spygirl

One cannot act like Carnak in these matters and make predictions on whether a carrier will or will not be operating in a particular time period. I know nothing about ATA and its financial woes, it would not, however, be dissimilar to most other major commercial carriers and their acute financial issues in that regard. You have to remember that there's a big difference between declaring Chapter 11 and going into receivership-which means the carrier may well be forced to sell its assets or be sold or merge into a different airline. It may be for ATA that it will go into Ch. 11, reorganize, and come back in better financial shape. Then again, it may not. But just because it's in Ch. 11 doesn't mean it stops operating. UAL, USAIR and others have continued to operate while in Ch. 11, so the fact that an airline declares Ch. 11 is by no means dispositive on the issue of whether it continues business as usual with its scheduled pax service (in the short term, Ch. 11 usually just means cuts in service).

As far as the law that currently mandates that other airlines accomodate pax on airlines that go out of business, well, that law is scheduled to expire in November, and it is not clear at all whether some amendment to the Act will keep it going. My advice to you would be to get some travel insurance that SPECIFICALLY covers airlines in bankruptcy-some do, some don't.

TC

Thanks for current responses. I have read many credible sources about ATAs financial woes and that they may substantially cut services/routes. I know that Chapt 11 doesn't mean "going out of busness", but if they cut the route to Mexico for February, they might as well go out of business for our purposes. I'm hoping my family will reconsider, ask for a refund from ATA and rebook on a more reliable carrier. I'm not sure how locked in they are as far as cancelling with ATA at this time.

I think financially insolvent carriers should have to offer some protection or at least disclose their potential problems at the time they take a booking. Unfortunately that will probably never happen - buyer beware and all.

Any additional info will be appreciated.
Thanks.

clevelandbrown

I've often wondered if having used a credit card to purchase the tickets offers any protection. I know some credit cards do offer some sort of guarantee, but I don't think all of them do. If you have bought your tickets far in advance, as many of us do, the period (I am thinking sixty days from receipt of the credit card statement) may well have elapsed before the flight cancellation.

Patty

In this case, I don't think the 60 day limitation on billing disputes applies. You purchased a product which was never delivered. I have several friends who booked with Renaissance Cruises before they ceased operations and ultimately they all got refunds through their credit card companies (well beyond the 60 day period).

tmh

TC<

By now you may have read that ATA is considering abandoning the Chicago-Midway market by selling them for cash to stave off these financial woes.

Unless your flight from Indy goes through MDW, your flight is not affected...at this time.

TC

Thanks, Unfortunately, the flight does go through MDW - all the ATA flights do. I wonder what will happen? At least my family has lots of time to sort it out. If you hear more, please post again.

AAFrequentFlyer

ATA is in <b>BIG</b> trouble. I actually believe their days are numbered. Here is an intersting article from their hometown newspaper:

<b>http://www.indystar.com/articles/1/172481-5431-092.html</b>

TC

Geez! What a mess. Thanks for posting. We want to keep on top of this so there's no last minute surprises that ruin our vacation. Thanks to all and keep the news coming.

BeachBoi

According to the Dallas Morning News this morning,ATA has approached Southwest regarding some of their assets.......
http://www.dallasnews.com/sharedcont...est.58578.html

FainaAgain

Got an e-mail from SouthWest: they've aquired ATA, and soon will become one company. The way they put it in e-mail: you will be able to earn even more FF points.

rjw_lgb_ca

Faina, that's just plain wrong. Southwest is NOT acquiring ATA outright; they're acquiring some gates at Chicago-Midway Airport, some miscellaneous assets and a non-majority equity stake in ATA, but they are NOT merging.

However, Southwest and ATA will enter into a code-share deal. ATA will continue managing its reorganization and eventual exit from Chapter 11 as a separate entity, and Southwest will sell the equity in ATA (convertible and common stock, I believe) over time.

In a few years, this situation may change, but right now there is NO merger.

rjw_lgb_ca

I have to quickly correct something I said: Southwest acquires convertible preferred stock, which is nonvoting equity. ATA gets cash out of this deal, which will help their reorg efforts a great deal.

FainaAgain

Oh, well, big surprise their e-mail is misleading

JJ5

ATA still holding. They have combined some flights and so have fewer total flights. For instance they have dropped their afternoon flights out of Midway to Florida as far as I can see, and put those passengers that were booked on the 6 to 9 pm (time frame same day but later) flights to the same places.

I have flights in February that were changed but look like they will all go- and many I know are still booking flights through summer and onwards. Actually, the judge has agreed on the SW 6 gate takeover at Midway already- so it looks like that market also will still be with us.

Merger talk has altered greatly as AirTran has dropped out of the picture. It looks like the arrangement with SW will continue/heighten and that further arrangements will be established with the help/clout of Chicago politicians. Employees that were supposed to be downsized in December, have not been.

Don't know anything about the FF points, but I doubt that it will happen. Ironically, ATA flights are going when lots of the big boys didn't over the past 2 days. We had 8 to 12 inches of non-stop snow and O'Hare had over 500 cancelled flights yesterday. Midway had 60.

TC

JJ5: You sound like you really know this airline. Thanks for your confident words. We hope all goes well. My family is so excited about the trip and so far have not be &quot;cancelled&quot; by ATA, so we're very optimistic. Please keep us posted if you get any more news.

Thanks.

mikemo

Southwest will certainly keep ATA alive as long as it's their best interest.
M

JJ5

More news about ATA (1/13/05) Chicago city council approved all. AND there is now a code-sharing agreement with SW.

This is what all above means - short version. And mikemo is correct as these issues improve SW's service / customer ratio/ profitability.

Code sharing begins on Feb. 4, 2005. This is the day after ATA flight reductions (combos of flights as my earlier post details) take effect. BUT only 243 of SW's 2,900 daily departures in USA are affected by this at all.

Both airlines cover additional cities now- but to cut to the chase the following markets are the ones affected with possible code-share plane transfers-
Chicago to and from the following cities: Boston, Denver, Honolulu, Minneapolis, NY, Newark, SF, DC, and three FL airports, which are Ft.Myers/Naples, Sarasota-Bradenton &amp; St.Pet./Clearwater.

Other cities ATA flights are not affected at all and the new times etc. starting on next week's sales and onward should be flown as planned without further combo changes. Of course, weather etc. could cause delays-just like at any other time.

Having said this and having my Ft. Lauderdale flights changed to later times that are not so hot for me, but still work- also know that with all this good news there is some not so good.

The downsizing has started of course, and the frieght side of ATA is giving lay offs starting in mid-February to the newest added pilots. This I know for sure, as one is a friend's son. He has worked for them for almost 2 years and is out of my university's Aviation program.

There will be no mixing of FF miles / programs etc. for now and none planned. SW now has 6 gates at Midway that were ATA previously. As a SW customer you will not notice much difference, except you may have more choice in lay-over city etc. But it will increase SW customer number by 3 or 4 people a plane on the above routes- so you will probably always be packed, if you aren't now.