ATA Airlines files for bankruptcy, halts service

Low-cost US carrier ATA Airlines said Thursday it had filed for bankruptcy protection and discontinued all operations, saying it had been squeezed by record fuel costs. The carrier based in Indianapolis, Indiana, said its 2,230 employees were laid off as it filed for court protection and reorganisation.
The company founded in 1973 had emerged in 2006 from Chapter 11 bankruptcy. ATA was the second carrier in a week to halt operations after Hawaii-based Aloha Airlines shut down service after 61 years. Doug Yakola, chief operating officer of ATA, said the loss of an agreement for a US military charter service and another deal with delivery service giant FedEx pushed the airline into an untenable position.
"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," he said in a statement.