EX-99.1 3 ex99-1.txt PRESENTATION DATA Salomon Smith Barney Transportation Conference ------------------------------------------------ American Trans Air [Graphic Omitted] George Mikelsons Ken Wolff Chairman and CEO EVP and CFO ================================================== November 14, 2002 -------------------------------------------------- American Trans Air ----------------------- Safe Harbor Statement This presentation contains forward-looking statements and information that are based on management's current expectations as of the date of this document. When used herein, the words "anticipate," "believe," "estimate" and "expect" and similar expressions, as they relate to the Company's management, are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause the actual results of the Company to be materially different from those reflected in such forward looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, the following: general economic factors affecting the industry and the Company; fuel prices; competition within the industry; changes in consumer preferences; regulatory changes; and economic conditions in key markets. Additional information containing factors that could cause actual results to differ from those in the forward-looking statements are contained in the Company's Form 10-K and other filings with the Securities and Exchange Commission. 2 Where We Are [Graphic Omitted] American Trans Air ----------------------- ========================================== ATA Holdings Corp. ------------------------------------------ o Entering the 30th Year of Business - Operating profits in all but 2 years o Leading Market Share in Scheduled and Charter Service - # 1 Airline at Chicago-Midway and Indianapolis - # 1 US Charter Airline - # 1 Military Passenger Airline o Re-fleeting to new aircraft with order for (39) B737-800, (12) B757-300 and (1) B757-200 aircraft - Youngest scheduled service fleet of any major airline o Affordable Fare and Low-Cost Business Strategy o 10th Largest Major Airline in the US - $1.2B - $1.3B in Revenue in 2002 4 American Trans Air ----------------------- o ATA has no net deliveries for 18 ======================================================== months beginning ATA Scheduled Service Completes Fleet Upgrade in 2002 in 2003 -------------------------------------------------------- Number of Aircraft 80- -------------------------- |*727 +757 #L1011 @737 | 71 -------------------------- |----| 66 | | |----| 64 64 | | 61 | | |----| |----| | | 60- |----| | | | | | | | | 58 |14@ | | | | | | | | | |----| | | |30@ | | | | | |39@ | |19# | | | | | |31@ | |31@ | | | | | | | | | | | | | | | | | |----| | | | | | | | | 40- |----| |15# | | | | | | | | | | | | | |----| | | | | | | |15+ | | | |10# | |----| |----| |----| | | |----| | | | 6# | | 6# | | 5# | | | |20+ | |----| |----| |----| |----| | | | | | | | | | | | | 20- |----| | | | | | | | | | | |24* | | | |26+ | |27+ | |27+ | |27+ | | | |----| | | | | | | | | | | |12* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0- | | | | | | 12/31/2000 12/31/2001 12/31/2002 12/31/2003 06/30/2004 12/31/2004 5 American Trans Air ----------------------- o ATA's fleet was one of ================================================= the oldest in the New Aircraft Deliveries Modernizing Fleet ------------------------------------------------- o ATA has decreased its ================================================= average fleet age by 62% Industry Fleet Age since 2000 to now operate ------------------------------------------------- the youngest fleet in the industry [Bar Chart]
25- 20.1 Air 20- craft 17.2 Delive- ries 15- 10.9 10.6 10.4 10 10.0 9.8 9.2 8.2 8.1 6.5 6.5 5 2.0 0 | | | | | | | | | | | | | Northwest ATA ATA Delta American America US Southwest Alaska United Continental ATA ATA (12/31/00) (12/31/01) West Airways (9/30/02) (Scheduled Service) 6
American Trans Air ----------------------- ================================================= New Fleet Improving Costs, Operating Performance ------------------------------------------------- Fleet Economics Improvement o 51 new technology aircraft in fleet as of 9/30/02; 56 by [Graphic of ATA Airplane Omitted] 12/31/02[F1] o Youngest scheduled service fleet in the industry o B737-800W burns 45% less fuel than a B727-200 - a $188K savings[F2] per aircraft per Performance Improvement month o 2 person cockpit o Safety technology o Reduced maintenance expenditures - Heads Up Display - Enhanced Ground Proximity Warning System - Traffic and Collision Avoidance System - Predictive wind shear o Navigation technology - CAT IIIA [Graphic of Cockpit Interior Omitted] - RNP 0.1 o ETOPS capable o 70% decrease in aircraft reliability issues (737 vs. 727) FN F1 Includes 737-800,757-200 & 757-300 aircraft F2 Assumes 305 hours of monthly utilization and 90 cents into-plane fuel price 7 American Trans Air ================================================ ----------------------- ATA's Revenue Sources ------------------------------------------------ o ATA's revenue diversity has ================================================ benefited its performance 2002 Airline Capacity since the 9/11 terrorist ------------------------------------------------ attacks [Bar Chart] |---------| / /|------------| | 12% | / | 6% | Other 100%- |Military | / |------------| |---------| / | 9% | | 12% | / |Indianapolis| Available 80%- | Charter |/ |------------| Seat |---------| | 14% | Miles | | | Hawaii | 60% | | |------------| | 76% | | 71% | |Scheduled| | Chicago- | 40% | Service | | Midway | | | | | | | | | 20% | | | | | | | | | | | | 0% | | | | 2002 ASMs ASMs by Gateway 8 American Trans Air ----------------------- =================================================== Scheduled Service Growth Leads Industry Majors o ATA leads the majors in --------------------------------------------------- scheduled service =================================================== passenger growth for 5 Year Passenger Growth the past 5 years --------------------------------------------------- [Bar Chart Omitted]
70%- Percentage Growth 60%- 57% 50%- 40%- 39% 30%- 20%- 14% 14% 10%- 2% 0%- 1% ------------------------------------------------------------------------------------------ -5% -7% -10%- -8% -13% -20%- ATA Southwest Alaska Continental America American Northwest US Delta United West Airways Enplaned Passengers - 2002 (12 Months ended March) versus 1996 (12 Months ended March) Source: Form 41 9
American Trans Air ----------------------- ======================================================= Leading market Share in Chicago-Midway and Indianapolis ------------------------------------------------------- Chicago-Midway Indianapolis August 2002 Enplanements August 2002 Enplanements [Pie Chart Omitted] [Pie Chart Omitted] Others Southwest Others 43% 42% 15% ATA ATA Connection Connection 2% 6% Southwest 10% ATA ATA 13% 37% US Airways Northwest 9% United 12% 11% #1 Carrier: ATA 43% ATA 15% #2 Carrier: Southwest 42% Northwest 12% 10 American Trans Air ----------------------- ======================================================= The Midway Alternative ------------------------------------------------------- "Chicago-Midway Airport is up almost 10% in departures. It's served by fast-growing ATA and Southwest airlines." -USA TODAY September 10, 2002
[Bar Chart] Chicago Departures Midway Accounts for all of Chicago's Growth --------------- | * Midway | 500,000 | # O'Hare | --------------- |--| |--| |--| 450,000 |--| | | | | | | |--| |--| |--| |--| | | | | | | | | | | 400,000 |--| | | | | |--| | | | | | | | | | | | | |* | |* | |* | |* | |* | |* | |* | |* | |* | |* | 350,000------------------------------------------------------------------ | | | | | | | | | | | | | | | | | | | | 300,000 |# | |# | |# | |# | |# | |# | |# | |# | |# | |# | | | | | | | | | | | | | | | | | | | | | 250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 200,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 150,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 100,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 50,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | | | | | | | | | | | | | | | 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002TTM
[Line Graph] Midway Market Share - Enplanements
ATA and Southwest Market Share -------------- | , ATA | | . Southwest| -------------- 60% . . 50% . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . ... . . . . . . . . . . . . , .. , . .. . . ,.,. . , ., ,.. 40% , . , , , . , .,. , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 30% , , , , , , , , , , , , , , , , 20% 10% 0% 02-98 05-98 08-98 11-98 02-99 05-99 08-99 11-99 02-00 05-00 08-00 11-00 02-01 05-01 08-01 11-01 02-02 05-02 08-02
Source: Onboard, 2002 TTM is Q2 2001 to Q1 2002, Chicago Airport Authority 11 American Trans Air ------------------------ =================================================== ATA #1 in Most Nonstop Midway Markets o ATA holds leading market --------------------------------------------------- share in 25% of its markets out of all of Chicago o ATA's average (unweighed) market share in the markets in which it competes is 72% for Midway and 24% for all of Chicago Midway All Chicago ATA Rank Market Share ATA Rank Market Share Boston 1 89% 10% 3 Washington DC - Reagan 1 96% 15% 3 Denver 1 67% 21% 2 Dallas-Fort Worth 1 54% 20% 2 Newark 2 45% 11% 4 Fort Lauderdale 1 60% 27% 1 Las Vegas 1 43% 18% 2 Los Angeles 1 64% 18% 3 LaGuardia 1 97% 20% 3 Orlando 1 66% 34% 1 Miami 1 91% 29% 2 Minneapolis-St. Paul 2 32% 17% 3 Philadelphia 1 90% 14% 4 Phoenix 1 52% 17% 3 Fort Myers 1 95% 37% 1 Seattle 1 72% 16% 3 San Francisco 1 91% 16% 3 San Juan 1 98% 24% 3 Sarasota 1 99% 80% 1 Tampa/St. Petersburg 1 48% 26% 1 Markets in which ATA is: #1 18 5 #2 2 4 #3 - 9 #4 - 2 Note: Figures as of Q1 2002 12 American Trans Air ------------------------ =================================================== Scheduled Service Capacity o ATA will take no net --------------------------------------------------- deliveries for the next 18 months - but because of its aircraft additions throughout 2002, capacity will grow 24% in 2003 Yr/Yr Change in Schedules Service ASMs ---------------- 50% | - 2002/2001 | | , 2003/2002 | ---------------- 45% - - - 40% - - - - - - 35% , - , - , , - - 30% , , , , , - , , , - , , 2002/2001 , , - , , 25% , , , , , , - , , , - , , 20% , - , , , , 2003/2002 ,-, 15% - - - - - 10% - - - - - - - - - - - - - - 5% - 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: ATA Holdings Corp., 8K filed October 29, 2002 13 American Trans Air ----------------------- ======================================================= Improving Route Network ------------------------------------------------------- [Graphic of Map Omitted] Chicago Non-Stop New Market Market May '02 Chicago - Moline* # 28 June '02 Chicago - Toledo* # 29 June '02 Indianapolis - Los Angeles June '02 Indianapolis - Chicago (737 added) July '02 Chicago - Charlotte # 30 July '02 Chicago - Flint* # 31 August '02 Chicago - Cedar Rapids* # 32 August '02 Chicago - Lexington* # 33 September '02 Indianapolis - Phoenix September '02 Indianapolis - New York (LGA) October '02 Chicago - San Jose # 34 December '02 Chicago - Montego Bay # 35 December '02 Chicago - Puerto Vallarta # 36 February '03 Los Angeles - St. Petersburg February '03 San Francisco - St. Petersburg March '03 Las Vegas - St. Petersburg * Indicates Chicago Express Service 14 American Trans Air ----------------------- ======================================================= New Midway is Customer-Friendly ------------------------------------------------------- [Graphics Omitted] o Expanded facility offers more frequencies and destinations o International gates for Caribbean and Mexican destinations o Expanded ticket counters and baggage claim o Covered adjacent parking o Modern business center o Attractive shopping and dining center o Moving walkways 15 [Graphic Omitted] Where We Are Going American Trans Air ----------------------- ======================================================= ATSB Loan Provides Liquidity ------------------------------------------------------- o $168M loan guaranteed by the Air Transport Stabilization Board o Six Year Term o Amortizes after 12 Months o Collateralized by aircraft, aviation parts, general equipment, and receivables 17 American Trans Air ----------------------- ======================================================= "Our Action Plan Is A Three-Legged Stool" ------------------------------------------------------- 1. Increase marketing efforts 2. Increase asset utilization / productivity 3. Cut costs 18 Quote: J. George Mikelsons -- ATA Earnings Call, October 29, 2002 American Trans Air ----------------------- ======================================================= Revenue and Marketing Initiatives ------------------------------------------------------- o Announced loyalty/frequent flyer program (September 30, 2002); 52,000 signed up through November 8, 2002 o Simplified Fee and Charges - Administrative / Change Fee reduced to $50 - Reaffirm current standby policy allowing same day travel at no charge - Reaffirm a policy that maintains ticket value when not used - Reaffirm no advance purchase, no minimum stay requirements - Top domestic fares capped at $299 each way o New ad campaign emphasizing customer value o Announced San Jose - CA, Montego Bay and Puerto Vallarta 19 American Trans Air ----------------------- ======================================================= Higher Utilization Drives Incremental Contribution ------------------------------------------------------- Low Fare Carriers' Daily Aircraft Utilization - Q3 2002 [Bar Chart] Daily Aircraft Utilization (hours) 14 13.3 12 12.0 11.6* 10.6 10 10.2 9.9 8 6 4 2 0 JetBlue Southwest ATA (w/ AirTran ATA Frontier Utilization (Narrowbody Improvements Only) Notes: JetBlue and Frontier numbers are based on Q2 2002; Southwest utilization is from the company website *Approximate daily utilization; ATA utilization improvements are based upon additional 737 and 757-300 flying 20 American Trans Air ----------------------- ======================================================= Increasing Asset Utilization ------------------------------------------------------- o Mid-day use of spare aircraft (inside turns - Midway to Minneapolis and Dallas Fort Worth) o Wednesday flying on B757-300 from the West Coast to Hawaii o Increased Midway Gate Utilization o Overnight Flying from Tampa/St. Petersburg to Las Vegas, Los Angeles and San Francisco 21 American Trans Air ----------------------- ======================================================= Cost Cutting Measures ------------------------------------------------------- o Voluntary work week reduction / leave of absence program o Officer pay cut in Fall 2001 and continued in Fall 2002 o Pay freeze for all non-contract employees effective September 11, 2001 extended through 2003 o Reallocated contributions to employee insurance plans o Received work rule flexibility from ALPA / AFA o Negotiated concessionary terms for delayed delivery of aircraft and engines o Renegotiated rates with various vendors for additional savings from hotels, handling, revenue management software and other contracted services 22 American Trans Air ----------------------- ======================================================= RASM & CASM Trends ------------------------------------------------------- Cents ------------ | - RASM | 9.0 | , CASM | ------------ ,, 8.5 ,, , - - ,, -,- - - , - , - - - , - , - - - , - ,, - 8.0 ,, - , - ,- ,, - - , - , , , , -, - - , , , , - - , , , , , - , - , CASM 7.5 , , - , - -, , , ,- , - , - - , - - - - - - 7.0 RASM 6.5 6.0 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 23 ATA Value Proposition [Graphics Omitted] Fly the newest planes Featuring quality in-flight service With a hub at all-new Chicago-Midway Using rapid passenger processing technology Offering convenient schedules to the biggest markets Priced for today's value-conscious consumers [Logo] ATA AMERICAN TRANS AIR