Southwest Airlines seeks control of ATA - report Tue Dec 14, 2004 12:06 PM ET CHICAGO, Dec 14 (Reuters) - Southwest Airlines' (LUV.N: Quote, Profile, Research) $100 million bid for six Chicago Midway gates leased by ATA Holdings Corp. (ATAHQ.PK: Quote, Profile, Research) features a proposal to take almost complete control of the bankrupt carrier, the Indianapolis Star reported on Tuesday. Citing a draft copy of Southwest's plans, the newspaper said that if Southwest's bid for the gates wins approval from a bankruptcy judge, the airline would remove ATA senior executives, inject $47 million in cash and take a 35 percent stake in ATA Holdings, parent of No. 10 U.S. carrier ATA Airlines. Once in control of ATA, Dallas-based Southwest would appoint new senior managers who would try to cut labor costs by 15 to 20 percent, the Star said. Calls seeking comment from Southwest and ATA were not immediately returned. Indianapolis-based ATA filed for bankruptcy in October after being weakened by falling fares and soaring fuel prices. In the wake of that filing, AirTran Holdings Inc. (AAI.N: Quote, Profile, Research) , parent of AirTran Airways, offered about $90 million for all 14 gates that ATA leases at Midway. On Friday, Southwest bid $100 million for various ATA assets, including six of ATA's Midway gates. Southwest and AirTran each have said they want to expand in Chicago. The bids are subject to approval from the bankruptcy court and the city of Chicago, from whom ATA leases the gates. Southwest's bid included its first code-share agreement, in which airlines sell tickets on each other's flights. The code-sharing agreement could allow ATA to restructure operations at Midway with eight gates. According to the Indianapolis Star report, the Southwest proposal also would earmark $85 million for the federal Air Transportation Stabilization Board, the agency that guaranteed $140 million in ATA loans. Roger EWROPS