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ATA Discontinues All Operations

People arriving to the Indianapolis headquarters of American Trans Air (ATA) this morning were greeted by police. They were escorted through the building to gather their personal items and then instructed to leave. They were informed that the company had filed for Bankruptcy and would not be reopening.

ATA had already posted a statement on their website.

“We apologize for the disruption caused by the sudden shutdown of ATA and regret the impact on passengers, employees, suppliers, and other parties. ATA customers should seek alternative arrangements for current and future travel.”

The release also said that the company had filed for Chapter 11 on April 2, 2008. They also advise that customers who purchased tickets using a credit card should contact their credit card company or travel agency directly for information about how to obtain a refund for unused tickets. But those how paid by cash or check would have to submit a claim in ATA’s Chapter 11 proceedings.

ATA employed 585 people at their Indianapolis headquarters and 2,300 people nationally. They flew over 10,000 passengers a day. The company began operations in Indianapolis in 1973.

The move to close came after the government did not renew a military transport contract with the fledgling airliner. The military contract was the crutch that helped the airline recover in 2006 from their first chapter 11 proceeding in 2003.

Aloha shuts down on Monday and now ATA permanently grounds it’s fleet. I guess I wont be taking anymore trips for a while.

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3 comments

  1. Wow, that’s a load of sheit. Great job on digging up the scoop before the paid professionals. Yup, that’s my brother for ya, and I’m damn proud of him!

  2. wow! I used to fly ATA (SWA’s little slave) out of Ronald Regan to hook up with SWA in CHI to head to CA. I wondered why SWA stopped doing that about 2 months ago… now I know! Thx!

  3. The avionics industry looks very romantic from the outside. Inside it can be extremely vicious and competitive at every level and tier of operations.

    My previous employer recently did the same thing, staggering on a Chapter 11, closing 90 some-odd stores. Makes one wonder how much more of this will be going on before the year’s end.

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