=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/10/14/f= inancial2214EDT0425.DTL --------------------------------------------------------------------- Thursday, October 14, 2004 (AP) ATA announces temporary layoffs amid merger speculation (10-14) 19:14 PDT INDIANAPOLIS (AP) -- ATA Airlines announced temporary layoffs throughout its system Thursday amid a published report that the struggling carrier was in merger talks. Shares of ATA Holdings Corp. rose 8 percent, or 21 cents, to close at $2.85 Thursday on the Nasdaq Stock Market after The Wall Street Journal reported that the Indianapolis-based company was in talks with the parent of America West Airlines to sell all or part of itself. ATA also has spoken with AirTran Holdings Inc., according to the newspaper, which cited people familiar with the discussions. ATA spokeswoman Erica Keane declined to comment Thursday on reports, as did officials at Tempe, Ariz.-based America West Holdings Corp. ATA has 7,900 employees, including 2,500 in Indianapolis. Company officials said the 156 layoffs announced Thursday will begin Oct. 31 and involve 150 flight attendants, four flight engineers and two first officers. ATA said autumn furloughs are usual because people travel less. Speculation about the future of ATA, the nation's 10th-largest airline, has been widespread in recent weeks. In an Aug. 16 filing with the Securities and Exchange Commission, the airline warned it likely would run out of cash in early 2005 and might sell some assets or restructure. The parent company reported then it had lost $90.7 million during the first half of 2004, despite a 2 percent growth in revenues to $778.1 million, due in part to higher costs for jet fuel and less business for its military charters. ATA also is saddled with millions of dollars in debt from buying new planes. ATA has been negotiating contract concessions from its pilots and flight attendants. The 1,100 pilots in July agreed to $43 million in concessions and now are negotiating a second round of givebacks. Its 1,900 flight attendants are deciding on a $24 million package. On the Net ATA: www.ata.com ---------------------------------------------------------------------- Copyright 2004 AP