Chapter 11 is actually a section of the US Bankruptcy Code, and a rather unusual one when you look at how other nations have traditionally handled insolvencies. I believe that there is now a European version of Chapter 11, but don't quote me on that. As for the shutting down operations, if you look back at history when airlines have filed for Chapter 11 they will almost always bring all their aircraft back to their base of operations to protect them from creditors seizing them at the out stations before the filing is official. Braniff did this both times, Continental did it both times, Pan Am did it, Eastern did it - it is simply an asset protection move. I believe if we looked at the recent filings you don't see this pattern as the airlines are filing much earlier than they used to (Chap. 11 has lost it's stigma) and since the aircraft can't be seized if they are current on their payments, it is unnecessary. The standard pattern has been to shut down for a couple of days, then to begin limited operations again, focusing on only your most profitable routes and aircraft. There are cases however where the Chapter 11 morphs into a Chapter 7 liquidation filing, a la Eastern, and that is when the assets get sold and the company simply ceases to exist. But almost always, they will try to reorganize under Chapter 11 first.
ATA was not owned by Southwest but rather was working as an affiliate to fly the routes, mainly Hawaiian, that Southwest wasn't ready to undertake on their own. They also handled the charters and vacation packages for SW.
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