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September 12th, 2002
Kelley School of Business Presentation
ATA Holdings Corp.
Sean FrickManager,
Strategic Planning
Northwest’s Non-Stop North American Routes
Legacy Hub and Spoke Carriers
Next Generation Low Fare Carriers
American Trans Air
5
Q1 2002 Major Airline Unit Cost (Cents per Available Seat Mile)
Cost Advantage Allows ATA To Offer Lower Fares
9.5
9.7
9.7
10.1
10.5
11.3
11.4
7.3
7.0
12.9
ATA*
Southwest
America West
Northwest
Continental
Alaska
Delta
American
United
US Air
Yr/Yr Change
(12%)
(5%)
11%
(3%)
(3%)
1%
0%
0%
(1%)
8%
ATA’s CASM is one third lower than the average CASM of the top 9 major airlines
CASM (cents)
* Excludes the operations of tour operator subsidiary
American Trans Air
6
Scheduled Service Performance vs. Major Airlines (Q1 2002 vs. Q1 2001)
ATA Outperforms Industry In Downturn
Source: Company Press ReleasesNote: Table shows scheduled service only when information is available.
Revenue RASM Yield Load Factor Operating Margin EBITDA Margin CASMChange Change Change Point Change Point Change Point Change Change
ATA -1.8% -8.4% -5.1% -2.5% 3.5% -1.4% -12.5%AirTran -8.0% -18.5% -13.3% -4.2% -12.2% -14.1% -7.7%Alaska -2.8% -3.1% -5.5% 1.3% -0.8% -0.2% 0.9%America West -20.9% -8.2% -9.5% 0.9% -22.5% -8.2% 10.8%American -11.5% -14.0% -15.9% 1.5% -17.5% -15.2% 0.4%Continental -18.8% -10.1% -14.6% 3.6% -12.5% -6.9% -2.6%Delta -25.0% -10.7% -14.9% 1.8% -11.0% -8.1% 0.0%Frontier -1.4% -11.9% -8.9% -2.0% -3.1% -1.6% -9.2%Northwest -17.7% -6.9% -10.5% 2.9% 0.0% 1.3% -3.0%Southwest -12.1% -15.5% -9.7% -4.4% -10.8% -9.5% -4.9%United -27.6% -11.0% -15.5% 3.9% -12.8% -8.7% -0.9%US Air -26.9% -9.9% -14.1% 2.3% -11.5% -11.2% 7.7%
ATA Rank 2nd 4th 1st 10th 1st 3rd 1st
American Trans Air
7
Industry Fleet Age
Rapid Fleet Modernization will Improve Cost Structure• ATA’s fleet was one of the
oldest in the industry
• With the new aircraft order, ATA’s fleet is becoming the most modern in the industry
Note: Assumes other carriers add/subtract aircraft at a rate that maintains fleet ageSource: Deutsche Bank Alex. Brown 2/4/02 U.S. Fleet and Capacity Update
20.5
11.3 11.2 10.810.2 10.0 9.9
8.0 8.07.3
6.6
17.2
0
5
10
15
20
25
Northwest
ATA (12/3
1/00)Delt
a
US Airw
ays
Amer
ican
United
Amer
ica W
est
TWA
Continen
tal
Alask
a
Southwes
t
ATA (6/30/0
2)
Ave
rage
Air
craf
t A
ge
American Trans Air
8
History of ATA
1973 J. George Mikelsons founds Ambassadair Travel Club in Indianapolis
1978 Deregulation of U.S. Airlines
1981 ATA begins Charter service, total revenues of $30.5M
1986 ATA begins Scheduled service, total revenues of $185M
1993 ATA completes initial public offering on the NASDAQ
1999 Revenues exceed $1.1B, making ATA the 11th US major airline
2000 ATA completes transaction for 50 new fully financed aircraft
2001 ATA begins successfully implementing new fleet and opens new Midway Terminal
2002 ATA opens new international terminal in Midway
American Trans Air
9
ATA Company Profile
• 29 Years in Business
- 27 Years of Operating Profits
• Leading Market Share in Scheduled and Charter Service
- # 1 Airline at Chicago Midway and Indianapolis (Passengers)
- # 1 US Charter Airline (Revenue)
- # 1 Military Passenger Airline (Tied on Revenue)
• Re-fleeting to new aircraft with order for (40) B737-800, (12) B757-300 aircraft and (1) B757-200 aircraft
- Youngest schedule service fleet of any major airline
• Affordable Fare and Low-Cost Business Strategy
• Top Tier Financial Performance
• 10th Largest Major Airline in the US
- Estimated $1.4B in Revenue in 2002
American Trans Air
10
2001 Airline Capacity
ATA’s Revenue Sources
71% 67%
5%
16%
13%
18%
10%
0%
20%
40%
60%
80%
100%
2001 ASMs ASMs by Gateway
Ava
ilabl
e S
eat
Mile
s
Military
Hawaii
Indianapolis
Other
Charter
Chicago Midway
Scheduled Service
• ATA’s revenue diversity has benefited its performance since the 9/11 terrorist attacks
American Trans Air
11
5 Year Passenger Growth
Scheduled Service Growth Leads Industry Majors• ATA leads the majors in
scheduled service passenger growth for the past 5 years
26%
20%
15%
8%6% 5% 4%
-2%
47%
39%
-5%
5%
15%
25%
35%
45%
55%P
erce
ntag
e G
row
th
Source: Form 41 data
Enplaned Passengers – 2001 (12 Months ended September) versus 1996 (12 Months ended September)
American Trans Air
12
ATA is the #1 Carrier in Chicago-Midway and Indianapolis
Indianapolis RPM Share
Others13%
United10%
Southwest11%
US Airways12%
American13%
Northwest11%
Delta13%
ATA17%
ATA vs. Southwest Midway Market Share
0%
10%
20%
30%
40%
50%
60%
Jan-
98
May
-98
Sep-98
Jan-
99
May
-99
Sep-99
Jan-
00
May
-00
Sep-00
Jan-
01
May
-01
Sep-01
Jan-
02
May
-02
Mid
way
Mar
ket
Sh
are
- E
np
lan
emen
ts
ATA
Southwest
American Trans Air
13
• Curbside check-in• E-ticketing self service check-in• Online boarding pass print-out capability• Electronic Gate Readers
•Advanced Seat Assignment•Comfortable leather seating•32” seat pitch vs. 30” on 727 •25% increased capacity in new overhead bin
design•100% fresh air circulation (B737-800)•Quiet in-cabin experience
• Low cost brand-name hot catering introduced on longer flights
• Improved quality of in-flight entertainment
– PAVE program to show targeted short spots based on aircraft routing
– Recent full-length movies on longer flights updated monthly
ATA’s Scheduled Service Product
American Trans Air
14
Strategic Planning- Function as special projects /
internal consulting group
-Opportunity to work
with other departments
- Direct Exposure to upper-
level management on
critical projects
- Team Oriented
Strategic Planning Profile
Proforma
Financials
FINANCE
Process
Diagrams,
Labor
Negotiations
OPERATIONS
Market
Analysis
MARKETING
Presentations,
Financial Releases,
Industry
Comparisons
INVESTOR
RELATIONS
American Trans Air
15
Strategic Planning Process
Research
• Internet
• Libraries
• Proprietary databases
• Trade press
• SEC information
Analysis/Modeling
• Economic modeling
• Regression
• Risk Adjustment
• Excel
• Access
Understanding
• Group sessions
• Brainstorming
• Hypothesis testing
Communication
• Simplify
• Encapsulate
• Present
American Trans Air
16
Career PathVice President
Director
Strategic Planner
Staff
Clerical Operations Management– Maintenance– Flight Operations– Airport Services– Customer Services
Manager
MBA / Law School
Staff Management– Strategic Planning– Finance– Marketing– IS– Tour Operator
or
Sr. Strategic Planner
Financial Analyst
American Trans Air
17
ATA Kelley School of Business Alumni
Ken Wolff CFO and Executive Vice President
Chet Fuller Vice President, Flight Operations Productivity and Analysis
Jack Schultz Director, Accounting
Sean Frick Manager, Strategic Planning
Brian Wilson Senior Operations Analyst
Doug Doster Strategic Planner
Peter Tamulonis Operations Analyst
Ryan Poeppelman Financial Analyst
American Trans Air
18
ATA’s “Five” Year Business Plan
Input Output Uses
• Detailed Financial Statements (Income Statement, Balance Sheet, Statement of Cash Flows, etc.)
• Detailed Operating Statistics (Departures, Passengers, Seat Miles, etc.)
• Meaningful Metrics and Ratios (RASM, CASM, EBITDAR, Debt to Equity, etc.)
• Special Projects (Aircraft Acquisition Deal, Privatization, Government Loan Application)
• Supporting the Management Decision Making Process (Asset Allocation, Cost Control, Liquidity Analysis)
• Debt covenants
• Valuable source for historical information
• Begin with aircraft
• Historical unit utilization, revenue, and expenses applied to create income statement
• Income statement flows into balance sheet and cash flow statements
• Adjust for unique transactions and management input
Creation
• Developed according to GAAP
• Regression Analysis performed to determine cost and balance sheet drivers
• Historical data from 1997 to present input into model and updated monthly
• Formatting and printing macros
AMERICAN TRANS AIR