ATA announces 220 job cuts

Airline Industry Information, Oct 22, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Low-cost US airline ATA has cut 220 jobs after it warned that a pay deal struck with flight attendants would not be enough to solve its cash crisis.

The Indianapolis-based carrier did not say what jobs would be cut but did confirm that the layoffs would not include pilots, ramp or reservation agents and flight attendants. In a statement ATA said that high fuel costs, falling fares and excess capacity had led to the airline re-examining its business.

ATA's flight attendants recently voted to approve a 10% pay cut among other concessions that their union said would save the airline USD23m annually. The new job cuts follow another 156 layoffs that will take effect on 31 October 2004, reports The Associated Press.

((Comments on this story may be sent to aii.feedback@m2.com))