Bankruptcy protection exit for ATA Airlines

Airline Industry Information, March 1, 2006

AIRLINE INDUSTRY INFORMATION-(C)1997-2006 M2 COMMUNICATIONS LTD

On Tuesday (28 February) ATA Airlines and its parent company ATA Holdings Corp exited a 16-month period of bankruptcy protection.

According to The Associated Press, the airline survived its period of bankruptcy largely due to a partnership with rival Southwest Airlines, a USD120m infusion of capital from a private equity firm and employee concessions.

During the airline's period in bankruptcy the carrier cut salaries, withdrew over a dozen routes, exited its hub of Indianapolis, Indiana, and reduced its work force by about half to 3,000.

The carrier also become a privately held company on Tuesday, ending 13 years of being publicly traded, The Associated Press reported.

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