The winning bidder for Chicago Express plans to create a world-class regional airline, but whether the carrier will keep its name or its relationship with Midway Airport has not been determined.
U.S. Bankruptcy Court Judge Basil Lorch III said Monday that he would approve ATA Airlines’ sale of Chicago Express to Okun Enterprises Inc. The Indianapolis-based developer, whose holdings include shopping malls, was the winning bidder in an auction held last week in Indianapolis.
“There’s a great need for a regional airline to provide high-quality service to small airports, to allow them to get to a major hub in just one leg of flying,” said Joseph Kavan, attorney for Edward Okun.
ATA shut down Chicago Express on March 28. As part of an effort to emerge from bankruptcy protection, ATA announced earlier this year that it wanted to sell or liquidate the regional carrier.
Okun has agreed to pay between $3 million and $4 million for Chicago Express, as well as $2.44 million for two Saab 240 aircraft. The exact sale price will depend on unspecified negotiations Okun has to resolve regarding the carrier, the court was told. The sale is contingent on the approval of federal regulators, who will determine if the airline will keep its certification allowing it to fly.
A meeting with consultants is scheduled this week to discuss the future of Chicago Express, Kavan said.
“We’re doing some marketing studies to determine where we’ll go,” he said. “Our consultants are trying to determine where the greatest need is on a regional basis. From that, we’ll develop what routes and flight schedules we’d like to have. And we’ll also determine what name we’d like to have.”
ATA’s parent, Indianapolis-based ATA Holding Corp., spent $1.9 million to purchase Chicago Express in 1999. The regional carrier served Midwest cities that included Milwaukee; Flint, Mich.; and Ft. Wayne, Ind., from Midway and Indianapolis.
As late as January, ATA had planned to expand Chicago Express’ reach, envisioning a plan to bring passengers to Indianapolis and Chicago, where they would transfer to ATA flights. But that plan was scrapped when the airline downsized as part of its bankruptcy reorganization.
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