INDIANAPOLIS, Nov. 1, 2005 (PRIMEZONE) -- ATA Airlines, Inc. (Pink Sheets:ATAHQ) announces that while its headquarters will remain in Indianapolis, the Company will be suspending its service to/from the city, effective Jan. 10, 2006. Codeshare service via Southwest Airlines to Chicago-Midway will continue, allowing Indianapolis customers to access ATA's network through its main hub in Chicago.
"The support we have received from the people of Indianapolis made this decision extremely difficult," said ATA CEO and President John Denison. "Despite everyone's desire to retain service to the city, market forces beyond our control left us with no other viable alternative."
ATA currently offers non-stop service from Indianapolis to Ft. Myers, Fla., Orlando, Fla. and Las Vegas. It also provides direct service to Honolulu and Maui, Hawaii and San Juan, Puerto Rico. All flights from Indianapolis will end as of midnight, E.S.T., on Jan. 9, 2006.
ATA intends to maintain its headquarters in Indianapolis. The Company has signed an agreement with the Indianapolis Airport Authority to retain its lease of corporate office space on airport property.
Additional Service Reductions
ATA will also be discontinuing its service to Denver and San Juan, Puerto Rico as of Jan. 10, 2006. Currently, the airline provides four daily non-stop flights from Chicago-Midway to Denver and two daily non-stop flights from Phoenix to Denver. The carrier's service to San Juan, Puerto Rico includes one daily non-stop to/from Orlando and Chicago-Midway.
"As a carrier, we must always balance our ability to generate sufficient revenue on each particular route against its operating costs," said ATA Senior Vice President and Chief Commercial Officer Subodh Karnik in explaining the Company's decision. "In Denver, the intense competition created by carriers such as Ted, Frontier and now Southwest Airlines made it impossible for us to responsibly justify our continuing this service. It was this same interplay of fluctuating demand and high fuel costs that was central to all of today's announced cancellations. All airlines, particularly those in bankruptcy, must make these types of decisions to sustain profitability."
ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick agreed. "By making these adjustments, we improve our ability to achieve a profit in a shortened time frame. In turn, this strengthens our position in creating an appropriate structure for successful emergence in early 2006."
Customer Assistance
Customers holding tickets on the affected routes for travel beyond January 9, 2006 will be contacted and provided either full refunds for the unused value of their tickets or alternative travel. The Company has assembled a special team of dedicated reservations agents to provide assistance in these matters. Customers needing additional information following these initial contacts may call ATA's Reservations Department Special Services Desk at 1-866-282-7894. All changes will be reflected in the Company's available schedule within the next few days.
Employee Impact
ATA is already communicating directly with its employees regarding this announcement. "Route decisions are especially difficult because of the impact the reductions have on our employees," said ATA Senior Vice President of Customers and Ground Operations Doug Yakola. "Unfortunately, these changes are absolutely necessary for us given the current economic environment." At this time, an exact number of employee positions affected by this announcement is not yet determined. However, ATA is committed to assisting all affected employees in their transition.
ATA Airlines is now in its 32nd year of operation. The carrier offers affordable travel to destinations such as New York, Dallas/Ft. Worth, Hawaii, Florida and Mexico. Through direct and connecting codeshare flights, ATA now serves customers in more than 60 markets. For more information, visit ata.com.