IBJNews

BREAKING: ATA bankrupt again

Norm Heikens
April 3, 2008
Keywords
Back to TopCommentsE-mailPrintBookmark and Share

ATA Airlines Inc. said today it has filed for Chapter 11 bankruptcy protection, just two years after emerging from a bankruptcy filed in 2004.

All operations were discontinued as of 4 a.m. today, the carrier said, meaning ticket holders will need to find alternatives. ATA had previously discontinued scheduled flights from Indianapolis.

The filing means that about 600 workers in Indianapolis are immediately out of a job, ATA said. The company employs a total of 2,300; all are now out of work.


The voluntary filing was prompted primarily by the unexpected cancellation of a key military charter contract, ATA said. High fuel costs were another factor.

"We deeply regret the disruption and hardship caused by the sudden shutdown of ATA, an outcome we and our employees had worked very hard and made many sacrifices to avoid," Chief Operating Officer Doug Yakola said in a statement.

Customers can find more information at
www.ata.com or by calling 800-435-9282. Customers who used credit cards to buy tickets should contact their credit card provider directly to determine how to obtain refunds, ATA said.

ATA is owned by Global Aero Logistics Inc., which is not affected by the bankruptcy filing.

Global Aero's headquarters were moved to Peachtree City, Ga., last fall from Indianapolis. Global Aero is majority owned by
New York-based MatlinPatterson Global Opportunities Partners, which purchased ATA out of bankruptcy two years ago.

The companies' 29 airplanes were carrying about 10,000 passengers a day.

ATA had been a military subcontractor to FedEx for nearly two decades. However, FedEx abruptly told ATA that the contract would not be renewed for the federal government's fiscal year, which begins in October. The notification came a year earlier than the contract was to have ended, ATA said.

Soaring fuel prices had forced ATA on March 6 to announce that it would stop low-fare service out of Midway Airport in Chicago by April 14. ATA's international service from the airport was to have ended June 7. It's other scheduled flights were between the West Coast and Hawaii.

Last month, Global Aero CEO Subodh Karnik resigned and was temporarily replaced by Global Aero Chairman, John Denison. The company wouldn't discuss Karnik's departure.

Denison was ATA president and CEO from February 2005 to December 2006.

If efforts to revive ATA fail, the bankruptcy brings to an end an airline started in 1973 in Indianapolis by J. George Mikelsons. It once employed more than 2,000 locally.

For more, go to News Talk.

ADVERTISEMENT

  • Critics
    The main guy doing it was Chris O'Malley, I hope that he has been fired from this journal by now.
  • Model Businessman
    I think it is terrible the way that the community (mainly the papers) decided to slander a man who contributed so much to this city. George Mikelsons is a destinguished businessman who worked hard his entire life and lead a great example of how to be ethical. I've never met a more ambitious person than him, he took pride and what he did and did it well. Congrats to the unions and the pilots who persecuted him out of the company. If you had left it in his hands, you may still be operating today, or at least would have stayed in operation longer. Guys like this are rare. RIP ATA

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT