AirTran Agrees To Buy ATA's Chicago Ops For $90M

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AirTran Agrees To Buy ATA's Chicago Ops For $90M



Tuesday November 16, 5:20 PM EST


ORLANDO, Fla. (Dow Jones)--AirTran Airways, a unit of AirTran Holdings Inc. ( AAI), agreed to buy bankrupt ATA Holdings Corp.'s (ATAH.PK) operations at Chicago's Midway Airport for about $90 million paid in installments.

Under the deal, subject to approval by the city of Chicago, AirTran will assume the operation of 14 gates at Midway Airport.

In a press release Tuesday, low-cost carrier AirTran said ATA agreed to keep its current flight service levels at Midway Airport until Jan. 11. Furthermore, ATA will lease up to 12 of its aircrafts to AirTran through next June.

AirTran said the two parties will also enter into a codeshare and marketing agreement covering operations from Midway and other points on each airline's network.

The deal is expected to close by Dec. 23.

-Judy Lam; Dow Jones Newswires; 201-938-5400


Roger
EWROPS

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