The fallout from ATA Holdings Corporation’s filing for Chapter 11 Reorganization:
• The airline says it will maintain its flight schedule, operations, customer service and travel rewards programs.
• ATA entered an agreement with AirTran Airways, Inc. to operate and acquire
routes at Chicago Midway, Ronald Reagan Washington National and LaGuardia Airports.
• Indianapolis will remain ATA’s headquarters and primary hub.
The airline in news releases emphasized that it would continue doing business as usual. ATA said it would develop a plan of reorganization and make more efforts to lower its cost structure.
ATA is the US’s 10th largest carrier.
“Excess capacity, extremely high fuel prices, which continue to escalate, and declining fares have necessitated that all airlines, including ATA, re-examine their business,” said ATA Holdings’ Chairman, President and Chief Executive Officer George Mikelsons.
Report by David Wilkening
