ATA Closes Now What ?

57

By ms kim

What you can do

I'm sure everyone has heard about ATA Airlines filing for Chapter 11. First off to anyone who worked for them, you'll be in my thoughts and prayers. To those of you who just saw your vacation plans go south, I'm truely sorry.

First what is Chapter 11 really? Well Companies that file Chapter 11 usually are trying to stay in business and go through a reorganization of debt under Court supervision. In the end the Court can remove all or part of the Companies debt. When it's all over ownership of the Company now belongs to the various creditors and unfortunately Stockholders end up with nothing. Debt is broke down into 'secured' (collateral) and 'unsecured' (no collateral)catagories and then prioritzed within those lists by set rules. Secured debt is paid before unsecured and each level must be paid before the next one down .

So now that you know the basics of Chapter 11, what does it mean for ticket holders?

If you purchased you ticket with a Credit Card or through a Travel Agency you'll have to contact them to find out about a refund.

If you purchsed your ticket through Southwest Airlines for ATA you'll need to call Southwest (1-800-308-5037)

If you purchased your ticket with Cash/Check directly from ATA you'll need to file a claim (sorry). Their website is listing this site as the place to do that

www.bmcgroup.com/ataairlines

I looked at it and it seems a bit confusing but they do have a Phone listed for help (1-800-909-0100) Be aware that filing a cliam does NOT mean you will get a refund! You may get a partial refund or nothing at all. And don't expect the money anytime soon, if you get any, as there's no telling how long the case will go.

You'll have to rebook with another airline to get were you want to go and that means paying for their tickets as NONE of the other airlines are honoring any tickets/travel award points from ATA.

ATA does have an email for any additional questions ( customers@ata.com ) but be aware that they are clearly claiming they may not be able to make a timely response to any emails.

Some of the Airlines that offer the same destinations are American, Northwest, Delta and Continental

Now if you are collecting FF points through ATA be aware that they are GONE ! They can't be convert to Southwest Rapid rewards either since the points are gone there's nothing to convert.

Since this is 'breaking news' there's no way to tell if at some point things will change, but this is what I could find out for now.

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