Friday, February 28, 2020

Airplan Research Paper Example | Topics and Well Written Essays - 1250 words

Airplan - Research Paper Example fer packages such as the ATA Flier Program and the ATA Travel Awards which were low cost programs which afforded travelers the chance to earn travel points which they could use to get discounts. The airline was also a big employer which had more than 2,230 people by the time of its demise (Maxon, 2008). The company has had many financial troubles since its inception. The worst came in 2006 when it filed for bankruptcy and in 2008 when it failed to emerge from Chapter 11 bankruptcy protection (Lawton, 2007). There are many causes of the failure of ATA Airlines. These causes had a huge impact on the operations of ATA which led to its final demise. Below is an analysis of the causes and results of the company’s failure. There is also an overview of the possible solutions that could have saved the company from going under. The company was going through some financial difficulties when it closed down its operations. It could not finance its takeovers and neither could it sustain its existing operations. The financial crisis that hit the world did not spare ATA Airlines. The global financial crisis did a lot to make matters worse for the company. It was forced to file for bankruptcy twice: in 2006 and in 2008 (Maxon, 2008). The second time that the airline filed for bankruptcy was also the last time it was operational. Mismanagement might have led to the failure of ATA Airlines. Lack of leadership might have contributed to the fate that ATA Airlines fell to. Poor leadership may have led to the poor decisions that the Airline made. These decisions included takeovers and increasing operations even when it was clear that the company was not in a financial situation safe enough to carry out those operations (Lawton, 2007). It seems that ATA operated without having a solid operational strategy. The company sought to expand many of its flight services with little regard to the financial implications that this could have on its business (ATA Airlines). This lack of

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