4.16.2008

ATA Airlines Shuts Down After Filing for Bankruptcy Protection

Thursday, Apr. 3 2008

Ray Hennessey
foxbusiness.com/markets/industries/transportation/article/ata-airlines-shuts-filing-bankruptcy-protection_546847_8.html

ATA Airlines, the Indianapolis-based low-cost air carrier, shut down operations early Thursday after filing for Chapter 11 bankruptcy protection.

The company, which was founded in 1973, said it entered bankruptcy after losing a contract in its military-charter business. It was the second bankruptcy filing in the company's history, and came without warning to the hundreds of passengers scheduled to fly ATA Thursday.

Many of these travelers won't be able to get refunds for their tickets. ATA said on its website early Thursday that those who paid by credit card would have to contact their credit companies to get refunds, but those who paid cash or check would have to apply as creditors to ATA with the bankruptcy court in Indiana.

ATA operated hubs at Chicago Midway, Honolulu International Airport and Oakland International Airport.

It is the second airline to file for Chapter 11 in as many weeks. Last week, Aloha Air also shut down.

ATA's bankruptcy filing comes at a difficult time for air travelers. Just yesterday, United Airlines canceled several flights over safety issues with its Boeing 777 aircraft. That came after thousands of passengers saw their flights canceled nationwide last week as airlines like American and Delta did new safety checks.

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