America West Airlines still interested in ATA takeover

Airline Industry Information, Oct 28, 2004

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

Low-cost carrier America West Airlines has said that it is still interested in the possibility of taking over the bankrupt ATA Airlines.

ATA filed for bankruptcy on 26 October 2004 and has already agreed to sell its Chicago Midway Airport assets to rival budget carrier AirTran Airways along with flight slots at New York's LaGuardia airport. A spokesperson for America West said that it has held talks with the airline and still believes that ATA has potential, and that its proposal would be more desirable to ATA's employees and creditors.

ATA's CEO said that the airline is determined to stay independent and recreate itself as a low-cost carrier but an AirTran Airways spokesperson said that any such proposal could hit trouble in bankruptcy court. AirTran Airways' own deal with ATA has still to be approved by the airline's creditors and the bankruptcy court, reports The Associated Press.

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