ATA Files Ch. 11

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SOURCE: USA Today
http://www.usatoday.com/money/biztravel/2004-10-26-ata-airline-bankruptcy_x=
=2Ehtm

ATA Airlines files for bankruptcy protection
INDIANAPOLIS (AP) =E2=80=94 ATA Airlines, the nation's 10th-largest airline=
, filed for=20
bankruptcy protection Tuesday, one day after naming an executive to oversee=
=20
the restructuring of the discount carrier's mounting debt.

The filing under Chapter 11 of the federal bankruptcy code came as the=20
Indianapolis-based airline faces soaring fuel costs, an industry fare war a=
nd=20
sharply lower demand for military charter flights.

ATA also is saddled with millions of dollars in debt from new aircraft=20
purchases.

In recent weeks the company has announced plans to cut more than 300 jobs,=
=20
including 150 flight attendants. So far this year, ATA pilots and flight=20
attendants have accepted nearly $70 million in wage concessions.

In an SEC filing last week, ATA said its finances have worsened since Aug. =
16,=20
when it reported that it had lost $90.7 million during the first half of=20
2004.=20

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