View Full Version : ATA Airlines on the verge of bankrupcy!
cunningstunt
2nd Oct 2004, 22:00
The Indianapolis head quarters has been buzzing with Lawyer activity during this past week and a filing appears imminent. Fuel prices and labor contracts continue to effect this carriers ability to turn a profit and without an up-turn in revenue, they could become another relic of the low cost revolution.
we_never_change
3rd Oct 2004, 10:50
Don't ATA have a rather large contract with the US Gov't flying US Military personal around the globe? I regulary notice ATA 757s & Tristars in Europe using "Reach" callsigns.
WNC
cunningstunt
3rd Oct 2004, 13:37
Yes, the five remaining L1011's and many 757's fly military charters and another $250 million yearly contract was signed recently but, this type of flying represents only a relatively small part of the total revenue generated by the company. The real problem lies within the domestic market where it struggles to compete with the likes of Southwest, Jetblue, etc. In fact Jetblue has stated it's intention to move into the Indianapolis market along with Northwest who, will be increasing the daily Indy flights almost ten fold and have become adept at selling low fares through it's extensive network.
Well it's not for the want of a buoyant home market.
http://www.indystar.com/articles/0/183260-7320-105.html