Lessons Learned from Aloha and ATA Going Bust

May 2008
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Contrast the way these two carriers handled their customers and it’s clear: It pays to fly a carrier that is part of an alliance.

“ATA has contacted the airlines that serve ATA destinations and asked them to provide assistance to ATA customers,” reads the carrier’s press release announcing its fall to earth. Translation: You’re on your own. (ATA’s only partner was Southwest Airlines, which did step up to the plate to rebook customers who purchased from Southwest but were flying ATA.)

The release advised customers who purchased tickets with a credit card to contact the card issuer for information on obtaining a refund.

There was more bad news for those holding tickets: You’re now a creditor. “ATA currently is unable to provide refunds to customers who purchased tickets directly from ATA with cash or a check. These customers may be able to obtain a full or partial refund for their unused tickets by submitting a claim in ATA’s Chapter 11 proceedings. Information about submitting a claim will be available at the following website: bmcgroup.com/ataairlines.”

In contrast, Aloha’s press release contained a lifeline: “Codeshare partner United Airlines and other airlines are prepared to assist and accommodate Aloha passengers who have been inconvenienced. For more information on United accommodation options, contact United at (800) UNITED1 or united.com.”

Otherwise, the fallout is the usual: Less competition on the routes these carriers flew, making it easier for the remaining competitors to raise fares and more competition for award seats.

Contrast the way these two carriers handled their customers and it’s clear: It pays to fly a carrier that is part of an alliance.

“ATA has contacted the airlines that serve ATA destinations and asked them to provide assistance to ATA customers,” reads the carrier’s press release announcing its fall to earth. Translation: You’re on your own. (ATA’s only partner was Southwest Airlines, which did step up to the plate to rebook customers who purchased from Southwest but were flying ATA.)

The release advised customers who purchased tickets with a credit card to contact the card issuer for information on obtaining a refund.

There was more bad news for those holding tickets: You’re now a creditor. “ATA currently is unable to provide refunds to customers who purchased tickets directly from ATA with cash or a check. These customers may be able to obtain a full or partial refund for their unused tickets by submitting a claim in ATA’s Chapter 11 proceedings. Information about submitting a claim will be available at the following website: bmcgroup.com/ataairlines.”

In contrast, Aloha’s press release contained a lifeline: “Codeshare partner United Airlines and other airlines are prepared to assist and accommodate Aloha passengers who have been...

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