An Indianapolis jury has returned a $65.9 million verdict against Memphis-based FedEx in a breach-of-contract lawsuit brought
in 2008 by now-defunct ATA Airlines.
The former Indianapolis carrier alleged FedEx broke a long-term contract with ATA to fly troops on behalf of the federal
government. ATA ceased operations in April 2008, shortly after it was informed by FedEx that it would no longer be part of
FedEx’s military contracting team.
Last week, the U.S. District Court jury said ATA is entitled to $21.9 million in lost profits for 2008 and $43.9 million
in lost profits for 2009.
ATA originally had sought $94 million. Last April, however, FedEx won a partial summary judgment that tossed out some of
ATA’s claims, leaving just the breach-of-contract charge. In a recent regulatory filing prior to the Oct. 19 verdict,
FedEx declared: “We still do not believe that any material loss is probable.”
“We respectfully disagree with the jury’s findings and are evaluating our options,” FedEx spokeswoman Sandra
Munoz told IBJ on Monday. It is widely expected that the company will appeal the verdict, which was reached
after three hours of deliberations.
Any money ATA ultimately recovers will be distributed to creditors, including pilots, said Ken Broughton, an attorney for
Texas-based Haynes and Boone LLP, which represented the airline.
In a statement, Broughton said that “unfortunately, any judgment ATA recovers from FedEx won’t revive" ATA.
According to bankruptcy records, ATA had 4,970 unsecured claims totaling $571.6 million as of June 30. The largest unsecured
creditor listed is Wells Fargo Northwest, seeking $301 million.
ATA, founded in the 1970s by Latvian immigrant George Mikelsons, grew to be the nation’s 10th-largest scheduled passenger
airline. An expensive fleet upgrade begun prior to the Sept. 11, 2001, terrorist attacks came back to haunt ATA as the industry
slowed in the years to follow.
ATA filed its first Chapter 11 reorganization in October 2004. At first, Southwest Airlines bought a portion of ATA stock,
along with New York vulture firm MatlinPatterson. ATA’s headquarters were moved to suburban Atlanta, where the
carrier became part of a larger organization based there—Global Aviation Holdings, operator of charter carriers World
Airways and North American Airlines.
Dallas-based Southwest walked away with ATA’s valuable gate slots, including those in New York City.

















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They Screwed Varig in Brazil, they screwed ATA in the U.S., and they are currently pulling the purse-strings at Global Aviation Holdings (parent of World Airways & North American Airlines) in Peachtree City, Georgia.
These people are nothing but VULTURES and don't give a damn about ANYTHING but profit.
We all hope to God that the World Airways filing with the SEC to go public (again) takes-off, before World is stripped of its' assets and its' rich history.......
SHAME ON YOU MatlinPatterson!!!!! You people are nothing but financial RAPISTS!