| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for ATA Holdings Corp. > News item |
ATA eliminating some flights, suspending new service launch to cut costs
By Caroline Salls
Pittsburgh, Oct. 13 - ATA Airlines, Inc. will eliminate several flights from Chicago-Midway as part of its efforts to create a more efficient and cost-competitive operating structure, according to a company news release.
The company will end its service from Chicago-Midway to Boston on Oct. 28, Newark, N.J. on Oct. 29 and Minneapolis/St. Paul on Dec. 1. ATA will also suspend its launch of new service between Chicago-Midway and Miami and Sarasota, Fla. that was scheduled to begin on Oct. 29.
"All airlines, including ATA, must continually evaluate the future profitability and viability of each route - based on passenger demand, competition and cost inputs," senior vice president and chief commercial officer Subodh Karnik said in the release.
"Increased capacity, fluctuating demand and skyrocketing fuel prices created a financial reality we simply could not ignore. Ultimately, it is our responsibility to create an operating plan that leads to predictable long-term profitability and the enhanced financial stability of the company."
ATA is in the process of contacting customers affected by this announcement and is putting plans into place to assist those individuals holding tickets beyond the cancellation dates until Jan. 9 in booking alternative travel on other carriers.
Those holding tickets for travel beyond Jan. 9 on the affected routes will be provided full refunds.
About 100 employee positions are affected by the route restructuring.
ATA Holdings Corp., ATA Airlines' parent, filed for bankruptcy on Oct. 26, 2004 in the U.S. Bankruptcy Court for the Southern District of Indiana. The Dulles, Va.-based company's Chapter 11 case number is 04-19866.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.