ATA Flight Attendants Accept 10% Cut

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ATA Flight Attendants Accept 10% Cut



Friday October 15, 8:26 PM EDT


INDIANAPOLIS (AP)--Flight attendants for ATA Airlines voted Friday to accept a 10% pay cut to help keep the airline in business and save their jobs.

The decision came on the same day that a federal judge authorized struggling US Airways (UAIRQ) to institute an immediate 21% pay cut on union workers. Also Friday, Delta Air Lines (DAL) said it would need more labor concessions to avoid bankruptcy, while United Airlines (UALAQ) said it would go to court if its unions failed to approve needed pay cuts.

ATA had announced Thursday that it would lay off 156 employees - including 150 flight attendants - beginning Oct. 31. The airline blamed the layoffs on a seasonal business slowdown.

ATA flight attendants rejected a $9 million concession package in late summer, but the union recommended passage of the new cuts because of the airline's worsening financial condition.



ATA has 7,900 employees, including 2,500 in Indianapolis.

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, ATA Holdings Corp. (ATAH), reported then it had lost $90.7 million during the first half of 2004, despite a 2% growth in revenues to $778.1 million, due in part to higher costs for jet fuel and less business for its military charters.

Speculation about the future of ATA, the nation's 10th-largest airline, has been widespread in recent weeks.

In trading Friday, ATA shares closed down 24 cents to $2.61 on the Nasdaq Stock Market.





Roger
EWROPS

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