Will Southwest Buy ATA’s Midway Assets?

An airline analyst said yesterday that she believes ATA is trying to sell its assets at Chicago’s Midway Airport to Southwest Airlines as a way to generate cash for the ailing low-cost carrier. ATA currently has 14 gates at Midway and is the largest carrier at the airport, representing 40% of flights. In addition, the airline is supposedly looking for buyers for 30 of its Boeing 737s. However, this morning ATA’s CEO vehemently denied that they were looking to sell the assets at Chicago. My guess is that they will vehemently deny it until the sale goes through, in which case they’ll be really happy they have the cash.

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