SFGate: ATA eliminating 220 jobs in face of cash crunch

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This article was sent to you by someone who found it on SFGate.
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inancial1423EDT0219.DTL
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Thursday, October 21, 2004 (AP)
ATA eliminating 220 jobs in face of cash crunch



   (10-21) 11:23 PDT INDIANAPOLIS (AP) --
   Discount airline ATA on Thursday eliminated 220 positions in a
cost-cutting move a day after it said a pay cut accepted by flight
attendants would not save enough money to ease its cash flow problems.
   Indianapolis-based ATA Holdings Corp. did not specify what jobs would be
cut, but said the reductions would not include pilots, flight attendants,
ramp agents or reservations agents.
   ATA, which flies to six Florida cities, said its business was hurt by the
hurricanes that struck that state in August and September.
   "Excess capacity, record high fuel prices and declining fares have
necessitated that all airlines, including ATA, re-examine their business,"
the company said.
   Three of the nation's largest airlines, AMR Corp.'s American, Delta Air
Lines Inc., and Northwest Airlines Corp., have reported a collective loss
of $906 million for the third quarter.
   The ATA job cuts represent about 3 percent of the company's work force.
   The new job cuts follow an announcement last week that that ATA would lay
off 156 employees -- including 150 flight attendants -- beginning Oct. 31.
The airline, the nation's 10th largest, blamed those layoffs on a seasonal
business slowdown.
   The airline's 1,900 flight attendants last week voted to accept a 10
percent pay cut among contract concessions that the attendants union said
would save ATA about $23 million over two years.
   In a filing Wednesday with the Securities and Exchange Commission, the
company said its financial problems have worsened since Aug. 16, when ATA
warned it likely would run out of cash in early 2005 and might sell some
assets or restructure.
   ATA Holdings shares were down 16 cents, or 9 percent, to $1.55 in
mid-afternoon trading on the Nasdaq Stock Market. The stock price has been
dropping since it topped $12 in February.
   The company reported in an Aug. 16 filing it had lost $90.7 million duri=
ng
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.

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Copyright 2004 AP

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