ATA airline files for $165 mln in loan guarantees

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ATA airline files for $165 mln in loan guarantees



Thursday June 13, 8:56 AM EDT


INDIANAPOLIS, June 13 (Reuters) - American Trans Air Inc., or ATA, said
on Thursday it has applied for $165 million in loan guarantees under the
federal airline bailout program to restore liquidity lost following the
Sept. 11 attacks.

ATA, a unit of Indianapolis-based No. 10 U.S. carrier ATA Holdings Inc.
(AMTR
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=AMTR>
), is the second large carrier to apply for loans under the $15 billion
bailout in the past week after No. 6 U.S. carrier US Airways Group Inc.
(U <http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=U>
), which is seeking $900 million in loan guarantees.

ATA said access to the credit and capital markets has been extremely
difficult for the industry, and airlines of its size since the attacks.
The airline has been taking delivery of new Boeing Co. 737-800s for a
fleet modernization plan.

The airline said it believes it has a solid business plan, but sees it
as prudent to pursue all available liquidity options. ATA reported a
first-quarter profit of $1.5 million, but warned last week that it
expects an operating loss for the second quarter and the year.

Air carriers have until to June 28 to file for loan guarantees.

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