INDIANAPOLIS, Aug. 12, 2005 (PRIMEZONE) -- ATA Holdings Corp. (Pink Sheets:ATAHQ) today announced that its founder, J. George Mikelsons, intends to retire from his position as President and Chief Executive Officer of the Company. Upon retirement, Mr. Mikelsons will continue to serve as the Company's non-executive Chairman of the Board until the earlier of the Company's confirmed plan of reorganization or December 31, 2005. The Company, its subsidiary, ATA Airlines, Inc. and Mr. Mikelsons are seeking Bankruptcy Court approval of the terms of Mr. Mikelsons' retirement and retirement compensation arrangements. If Bankruptcy Court approval is obtained, Mr. Mikelsons' retirement will be effective on August 31.
Mikelsons, 67, founded ATA's predecessor, the Ambassadair Travel Club, in 1973. Following deregulation of the airline industry in 1978, ATA was certified as a common carrier in 1981. Mr. Mikelsons formed the predecessor to ATA Holdings in 1984 to serve as the holding company for Ambassadair, ATA Airlines and future affiliates of the Company. The Company completed an initial public offering in 1993 and was traded on the Nasdaq Stock Exchange until November 2004. Under Mr. Mikelsons' leadership, ATA became the 10th largest airline in the United States and North America's largest operator of military and commercial passenger charters. ATA has carried more than 100 million passengers while maintaining an excellent safety record.
"The restructuring of ATA to enhance its long-term competitiveness has involved the hard work of many dedicated ATA employees. My heart and thanks goes out to each and every one of them," said Mr. Mikelsons. "I am leaving to enjoy retirement like others my age, but am confident I will be leaving ATA in good hands. I was pleased to have played a role in forging an alliance with Southwest Airlines, which I consider to be the premier low cost carrier in the U.S.
"The new ATA senior management team assembled over the past year is very capable, experienced, and hard working, and highly motivated to preserve ATA in the face of unprecedented, adverse industry conditions. I also wish to express my special appreciation for the continuing support throughout my career at ATA of ATA's employees, vendors and lessors, the State of Indiana, the cities of Indianapolis and Chicago, and most importantly, all of ATA's many valued and loyal customers."
Upon his retirement, Mr. Mikelsons will be succeeded as Chief Executive Officer of the Company by John G. Denison. Mr. Denison was previously named Chief Executive Officer of ATA Airlines on February 21, 2005. Prior to joining ATA, Mr. Denison served in senior management positions with Southwest Airlines from 1986 to 2001, including Executive Vice President of Corporate Services and Chief Financial Officer. Prior to joining Southwest, Mr. Denison held various positions with LTV Corporation and Chrysler Corporation.
"It's hard to imagine anyone other than George at the helm at ATA," said Mr. Denison. "I know I speak on behalf of all ATA employees when I thank George for his leadership and wisdom, and wish him the best in his retirement. I look forward to continuing to work with our senior management team and employees to sustain the momentum George generated guiding ATA to a successful reorganization."
ATA Airlines, now in its 32nd year of operation, offers "easy" and affordable travel to major business centers and popular vacation destinations like New York, Dallas/Ft. Worth, Boston, Hawaii, Florida, Mexico and the Caribbean. Through direct ATA flights and connecting Southwest Airlines codeshare flights, ATA now serves customers in more than 75 destinations. Try ATA's 15-times-every-weekday nonstop service between the New York area and Chicago-Midway. For more information, visit ata.com.