Spring Break is a long way off, but it's never too early to start planning - unless, of course, the airline you're planning to travel with eliminates your flight in the meantime.
On Jan. 9, Indianapolis-based ATA Airlines will put an end to its direct flights from Indianapolis to Ft. Myers and Orlando, Fla.; Las Vegas; Honolulu and Maui, Hawaii; and San Juan, Puerto Rico. These canceled flight paths might put a cramp in some students' Spring Break plans, but - more importantly - they also might put a cramp in Indiana's economy.
After 32 years of operation in Indiana, ATA can no longer afford to keep running these services out of Indianapolis - although it will continue its service to Chicago-Midway through Southwest Airlines, so that Indianapolis customers can access the company's main hub in Chicago. The airline filed for bankruptcy in October 2004 and eliminated nearly half its work force between March 2004 and last month. Like many other airlines, ATA has been struggling to stay afloat, only proposing plans for emerging from bankruptcy last month - a year after filing for Chapter 11.
The Honolulu and San Juan services began running from Indianapolis as recently as Jan. 10 of this year, according to a press release, at which time the company said it "continues to gain momentum in Indiana as we move forward with our restructuring efforts. We are very pleased to be in a position to dedicate more of our energies and resources to our home state by offering new travel opportunities."
However, in a Tuesday press release, the story had changed: "Despite everyone's desire to retain service to the city, market forces beyond our control left us with no other viable alternative," CEO and President John Denison said.
While competition with other airlines is certainly a factor, the Indianapolis market was simply not profitable enough for this Indiana company to continue its service here - and that raises a red flag. There will undoubtedly be a reduction in the number of Indiana jobs the company offers, as well as the amount of revenue the company is contributing to Indiana's economy.
State leaders have a responsibility to pay attention to the struggles ATA Airlines has undergone and to seek preventative measures for other companies barely surviving in the Indiana market. If Indiana consumers can't keep one of the state's own companies in business, the future of the state's economy appears pretty bleak.
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