Despite bankruptcy, ATA Airlines says it will keep flying and will honor all tickets.
ATA this week became the first major low-fare airline to seek Chapter 11 bankruptcy protection, setting of a bidding war for the company and its assets, according to wire services.
ATA CEO George Mikelsons said the airline will be retooled into a “refocused, streamlined and profitable airline.”
The airline is now operating on cash from ticket sales and government-backed loans.
ATA has apparently agreed to sell gates and slots at Midway in Chicago, LaGuardia in New York and Reagan National Airport in Washington to AirTran, according to a report in The New York Times. America West is also reported to be bidding for ATA slots.
ATA has 343 daily flights to more than 40 cities.
Report by David Wilkening
