ATA profitable again, but debt payments loom INDIANAPOLIS (AP) =97 ATA Airways =97 formerly known as American Trans Air = =97 is=20 surviving the airline industry downturn better than most competitors but=20 remains uncertain how it will make $300 million in debt payments over the=20 next two years. With several other airlines under bankruptcy protection or= =20 facing the threat of Chapter 11, ATA officials said recently they expect to= =20 turn a profit in the second quarter after four consecutive quarters of=20 losses. But the company has $175 million in bond debt due in mid-2004 and=20 another $125 million in 2005. The Indianapolis-based parent of the nation's= =20 10th-largest carrier, ATA Holdings Corp., also must pay hundreds of=20 millions of dollars in aircraft lease payments each year for new Boeing=20 737s and 757s. ATA added the planes to modernize its fleet before the Sept.= =20 11 terrorist attacks and the resulting economic downturn. The obligations have left ATA with one the airline industry's highest=20 debt-to-asset ratios at year-end, at 60%, The Indianapolis Star reported=20 Tuesday. That compares with 19% at Southwest Airlines, ATA's biggest=20 competitor among the low-fare airlines. ATA included a debt warning in its= =20 April announcement of first quarter earnings. "Given the current operating= =20 environment, the company is uncertain that it will be able to make those=20 payments as they come due. The company is currently exploring options," ATA= =20 said. The company has not said what those options are. "It's pretty clear=20 that they're not going to be able to write a check for the bonds next=20 year," said Clark Orsky, an industry analyst with KDP Investment Advisors.= =20 "Those guys definitely have some challenges ahead." In April, as part of a= =20 downgrade of ATA debt, Moody's Investors Service said ATA had few assets to= =20 support a loan. Much of its aircraft fleet is leased, rather than owned. There isn't an "easy, obvious, immediate place for them to go" in making=20 the debt payments, Moody's analyst Richard Bittenbender said. But, he=20 added, "There's still time. This is not in any way a desperate emergency."= =20 ATA has until August of next year to make the $175 million bond payment.=20 And the fact that ATA is set to turn a profit in today's environment "is=20 certainly a sign of very robust health," said George Mikelsons, ATA's=20 founder and chairman. "While we believe there's plenty of time, we first wanted to return the=20 company to profitability, Number 1; and Number 2, address those (debt)=20 concerns," Mikelsons said. The 30-year-old carrier operates hubs for its=20 scheduled service at Chicago's Midway Airport and Indianapolis=20 International Airport. ATA also is North America's largest operator of=20 commercial and military charters. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.natalielaughlin.com/ TnT Webdirectory: http://search.co.tt *********************************************************