Ancient Airlines: A look at unique and quirky airlines throughout aviation history
American Trans Air, also known as ATA, was highly successful in its heyday, taking passengers to destinations all around the world. It operated as the largest charter airline on the continent and transported more U.S. troops than any other commercial airline. It seemed like it had a great business model of connecting business passengers through major markets, offering discount travel to vacationers, and steady income with troop movements. We take a look at the rise and fall of ATA.
The Start of Greatness
American Trans Air started as Ambassadair originally, in 1973, when it was founded as a charter flight provider. For over a decade, it took its passengers all over the world, using an impressive fleet of Boeing 720, 707 and 727 aircraft. It didn’t start its regularly scheduled commercial service until 1986, when it offered American Trans Air service between Indianapolis and Fort Myers.
Once commercial service started, so did the expansion. Within a few years, ATA had begun service to other U.S. destinations, as well as service to Belfast and even Latvia (the Latvia service wasn’t a hit and was discontinued).
During the Gulf War, ATA also transported troops for the U.S. Military and U.S. Department of Defense, transporting more than 100,000 personnel for nearly 500 missions. The service also included the chartering of Lockheed L-1011 TriStar wide-body jetliners to the Department of Defense, for use transporting personnel between overseas air bases and Philadelphia.
Further into the mid-90s, ATA turned its commercial attention to leisure travelers, with flights to the Caribbean, Latin America and Hawai’i, as well as flights to the United Kingdom (though even then, many of the seats on these routes to the United Kingdom were filled with military personnel). At this time, the famous moniker, “On ATA, you’re on vacation” was plastered on billboards and TV spots.
As ATA continued to grow with the turn of the millennium, its fleet grew in turn, with new Boeing 737-800NG aircraft. ATA was even the North American launch customer for the Boeing 757-300 aircraft.
ATA was a market leader in innovation even as a smaller airline. The airline had foot rests in coach. They offered flat screen TVs (brand new back in the late ’90s) and leather seats on their new 737 and 757 aircraft. And the airline offered flexible e-tickets, now industry standard.
Before the airline began its descent from airline greatness, it would launch a regional service in 2000, called ATA Connection, linking Midwestern hubs such as Chicago and Indianapolis.
The Downward Spiral
The first hard hit ATA took was in 2001, when the Sept. 11 attacks heavily impacted the air travel industry. The decline in air travel and the recent purchase of new aircraft spelled disaster for ATA and, in 2004, it filed for bankruptcy. ATA transferred most of its gates at Chicago Midway to Southwest.
Southwest starts its first-ever codeshare with ATA
As part of the agreement for the gates and coveted East Coast slots, Southwest commenced its first major code share with an airline. The goal was for ATA to fly routes where Southwest didn’t (like Washington Reagan, DFW Airport, and Hawaii) while Southwest used the new gates to cement its position as a market leader. Overall, ATA drastically reduced flights and cut routes. It focused on cutting routes where it would face direct competition from Southwest or other low cost rivals like Frontier or JetBlue. ATA Connection shuttered too.
In 2006, though, ATA did make an effort to return to profitability. It began new service between Houston and New York City and additional routes between California and Hawaii in line with the Southwest partnership.
The airline realized that even with bankruptcy, the expensive leases from their newer fleet and the high costs of operating the L1011 were a consistent drag on the bottom line. It purchased some used DC-10 aircraft from Northwest’s retired fleet with the intent to replace its aging fleet of L1011. They also purchased a few used classic 737s in an effort to save costs as they returned the more expensive 737-800s.
New flights were added to the Chicago Midway hub in 2007, largely eliminating service from Indianapolis. However, later in 2007, ATA once again abruptly announced the termination of several of these routes. The airline seemed to have lost its way.
ATA’s loss is Southwest’s gain
In 2008, ATA declared bankruptcy a second time, at which point all operations stopped. When ATA shut down, it was serving 13 destinations with 29 aircraft. Southwest bought ATA’s remaining assets. ATA, on its end, was just a shell of the former airline that it had been 8 years earlier.
The cost of operating, especially jet fuel, combined with the abrupt cancellation of ATA’s military charter contract, meant the end. However, aggressive expansion, a poor economy, and high-cost aircraft definitely didn’t help. After ATA ceased service, Southwest replaced much of the service lost from the code share by launching new routes on its own metal.
One notable exception was Hawaii. It wasn’t until 2018 that Southwest finally launched service to the 50th state. Southwest almost treated American Trans Air as a proof of concept for new service and aircraft. By partnering with the flailing airline, they were able to vet new routes, larger 737-800 aircraft, and grow their Midway focus city into the near fortress hub that it is today.
I thought the launch customers for the 757-300 was Northwest with Pratt Engines and Condor with the Rolls power.
I flew 3 or 4 times in 1989/92 on them LAX to Paris CDG we stopped in Gander Newfoundland to re fuel the L1011 I do remember flying with them vividly The Flight Attendants were always so nice and professional always had a hot meal served with a smile Thanks for the Memories ATA miss flying with ya.
I worked @ATA for 15 years and it was the best Airline to work for. I went all over the world as we had special trips. most of the long trips that I did was for at least 30 day with the same passengers. They were called (Around the world) I did 12 ATW with French Passengers and I did 3 1st class ATW with all Americans on board, as. well 1 Germain I have been blessed to work with this Airline the cockpit crew were the best and the flight attendants were like a big family. The 15 years were the best career! I miss ATA and there will be nothing like ATA. Lina M Lebbos.