ATA asks for court approval of proposed $1.34 million sale of two slots at Reagan National

By Jennifer Lanning Drey

Portland, Ore., Jan. 20 - ATA Airlines, Inc. requested court approval of the proposed $1.34 million sale of its two slots at Ronald Reagan Washington National Airport to AirTran Airways, Inc. according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

Under the proposed agreement, the purchase price will be paid in 17 monthly installments of $20,000 each, with a balloon payment of $1 million due on June 30, 2010.

AirTran currently leases the two slots from ATA.

Competing bids are due by 5 p.m. ET on Jan. 26 and must be at least $100,000 greater than the proposed purchase price.

At auction, bidding will continue in $100,000 increments.

The sale hearing is scheduled for Jan. 28.

ATA noted in the filing that the Washington, D.C., airport slots are excluded from the purchase agreement under which Southwest Airlines Co. agreed to purchase the company's business.

ATA, an Indianapolis-based airline, filed for bankruptcy on April 2, 2008. Its Chapter 11 case number is 08-03675.

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