INDIANAPOLIS, Feb. 28, 2006 (PRIMEZONE) -- ATA Airlines, Inc., ("ATA") officially emerged from Chapter 11 today following the Jan. 31, 2006 U.S. Bankruptcy Court confirmation of the Company's plan of reorganization. The plan of reorganization for ATA and the other affiliated "Reorganizing Debtors" became effective today.
"Now that we've accomplished the monumental task of restructuring, our next focus will be on incrementally improving our operations," said ATA President and CEO John Denison. "Going forward we will be challenging ourselves to operate as efficiently as possible, leverage our core strengths and bring customer service to the highest levels of performance. I am confident that our employees can and will continually meet these challenges."
Since filing for protection under Chapter 11 on Oct. 26, 2004, ATA has taken several steps to revise its business model and strengthen its financial position. These have included entering into a first of its kind, long-term codeshare agreement with Southwest Airlines, realigning its route structure to focus on its most promising markets, and obtaining debt and majority equity funding from private equity firm MatlinPatterson.
"ATA's current scheduled service footprint in markets where the Company has a proven track-record of success, such as Hawaii, and the codeshare relationship with Southwest provide an excellent basis for profitable growth," said Subodh Karnik, ATA Chief Operating Officer. "In addition, our established military and commercial charter business provide a solid diversified foundation. Add to that our commitment to delivering high-end operating performance, and one begins to see the new winning picture taking shape at ATA."
During restructuring, old shares of common stock in ATA's parent, ATA Holdings Corp., were traded over the counter under the symbol ATAHQ. These shares will no longer trade after today. Instead, ATA and its new parent company will be operated as a privately held entity, a status that was in effect from ATA's certification as a common-air carrier until an initial public offering made in 1993.
ATA is entering its 33rd year, bringing more convenient, value-based service to the skies. ATA provides features travelers have come to expect, including advanced seat assignments, self-service kiosks, Web check-in, simplified and consistent fare structure, and a frequent flier program with one of the lowest thresholds for earning travel in the industry. Through direct and connecting codeshare flights, ATA now serves customers in more than 60 markets, including major business and leisure destinations such as Houston, New York, Chicago, Washington, D.C., Hawaii, Cancun and Guadalajara. For more information, visit ata.com.
Caution Concerning Forward-Looking Statements: This communication contains certain "forward-looking statements." These statements are based on ATA Holdings Corp.'s management's current expectations and are naturally subject to uncertainty and changes in circumstances. Except to the extent required under the federal securities laws, ATA Holdings Corp. is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.