Posted on 04/03/2008 7:30:13 AM PDT by Military family member
INDIANAPOLIS — ATA Airlines canceled all flights Thursday after filing for bankruptcy as it posted advisories at ticket counters in the handful of cities it still served and sought help for stranded travelers.
The Indianapolis-based airline, once the nation's 10th-largest, entered bankruptcy for the second time in just over three years Wednesday, this time citing the loss of a key military charter business.
The airline had approximately 50 flights per day, mostly between Hawaii and four west coast cities — Oakland, Los Angeles, Phoenix and Las Vegas, said company spokesman Michael Freitag.
ATA said has been in contact with other airlines that may be able to assist with travelers holding tickets that the airline can no longer honor.
On its Web site, the airline apologized for the disruption and suggested that customers seek alternative travel arrangements.
The company had over 2,200 employees, Freitag said.
"Virtually all of ATA's employees are being notified today that their positions are eliminated," Freitag said.
The carrier retrenched in 2006 after emerging from bankruptcy, focusing on destinations in the Southwest and an increase in military charter business. But like other airlines, it has struggled in a foundering economy and has been unable to offset soaring fuel prices.
Fuel is one of the industry's top costs and has pushed some carriers into merger talks.
Major airlines, to offset record fuel prices, have slashed amenities that were once free and added fees for second bags, traveling with pets and booking tickets by phone.
United Airlines said new luggage fees it has imposed on travelers will generate more than $100 million annually.
ATA came out of bankruptcy with several other carriers two years ago, and it became the second to declare bankruptcy in just the past two weeks, both with operations in Hawaii. Aloha Airlines filed for Chapter 11 bankruptcy protection last month, a little more than two years after emerging from bankruptcy.
ATA announced last month that it would leave Chicago's Midway Airport, which it had used as a hub since 1992.
The chief executive officer at ATA's parent company resigned two weeks ago. Subodh Karnik, who had been CEO at ATA, stepped down after heavy pressure from a major investment firm to turn the airline around.
“United Airlines said new luggage fees it has imposed on travelers will generate more than $100 million annually.”
Assuming people don’t tell them where to stick their luggage fee and fly on another airline instead.
Never heard of them.
They’re dropping like flies. Aloha, Champion Air, and now ATA.
}:-)4
ATA was a major military contractor as well. They have been flying our boys to and fro into the mideast theater for years.
FWIW... EVERY TIME I flew ATA, they lost my luggage!
Yea that must be some stiff luggage fees to generate $100 million annually
Indy is also building a new terminal, which is now more than 1/2 done. What will this do to that project?
I think they’ve been on the brink for awhile. They cut almost all their flights a few years ago. I am sure the Indy airport has been anticipating this for some time. In fact some airlines like Northwest and Airtran have added flights to replace old ATA flights to FL.
The problem is that alot of people don’t know about the baggage fee until they are at the airport. Whatchya going to do then? That happened to me. Cost me another $25.
I thought if we forced DST on hoosiers and funneled tax dollars to the Irsays, the state’s problems would be solved? What happened?
“United Airlines said new luggage fees it has imposed on travelers will generate more than $100 million annually.”
Assuming people don’t tell them where to stick their luggage fee and fly on another airline instead.
Other airlines are coming on board with the new and increased fees. You won’t be able to fly any airline without paying increased luggage fees.
You act as if Indiana was the first state to enact DST instead of one of the last. I'm still waiting for your reasoning behind revoking it, other than you simply don't like it.
ilgipper is correct; ATA has been in its deathbed for years
Both candidates campaigned on the Issue. We would have gotten it either way. The bill was introduced nearly every session. for the past 30 years.
IF you don't the state deciding the time, then by all means, set your clocks to random times and enjoy functioning or not, in the real world.
So you trust the MSM, which hated Mitch and loved Kernan, to be the deciding factor?
Let's not forget that Mitch merely signed the bill. He did not write the bill. Dale Grubbs did. If the bill was so hated, then why didn't all the state legislators who voted for it get voted out of office? Clearly, it's not the issue you keep trying to make it.
Personally, I didn’t like that we sold it for 75 years. I do not drive on it and will not drive on it. But I know a lot of people have to, and their tolls are going up.
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