Rediff.com  » Business » US airline ATA files for bankruptcy

US airline ATA files for bankruptcy

Source: PTI
Last updated on: October 27, 2004 12:11 IST
Get Rediff News in your Inbox:
The tenth-largest US airline, ATA Airlines has filed for bankruptcy protection and sold off airport slots and other assets to AirTran Airways for $ 87.6 million, to become the latest US airline plagued by rising fuel costs and fare wars.

George Mickelsons, president of ATA Holdings blamed the move on "excess capacity, extremely high fuel prices... and declining fares," according to a statement.

The airline will continue to operate a full-flight schedule, and honour its customer commitments, tickets and frequent-flier reward programmes while in bankruptcy, the statement added.

Orlando-based AirTran Holdings will assume ATA's flight operations, gate leases and routes at Chicago Midway Airport and arrival and departure slots at New York's LaGuardia Airport and Ronald Reagan Washington National Airport.

The deal is subject to approvals by the bankruptcy court and other entities and is expected to take effect by early 2005, ATA officials said.

ATA's announcement came amid speculation that Delta Air Lines Inc, the nation's third-largest airline, would win $ 1billion in concessions from its pilots and avoid bankruptcy.

The airline is expected to decide on Wednesday whether it should seek bankruptcy protection.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2021 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!