ATA Holdings says cash situation worsening

[Flying Freddie]

ATA Holdings says cash situation worsening
Wed Oct 20, 2004 01:12 PM ET
NEW YORK, Oct 20 (Reuters) - ATA Holdings Corp. (ATAH.O: Quote, Profile, Research) , parent of struggling low-cost carrier ATA Airlines, on Wednesday said a $24 million wage concession plan recently approved by its flight attendants will not be enough to alleviate its liquidity concerns.



The airline said its cash position had worsened since its quarterly earnings filing on Aug. 16, 2004, when it said it might run out of cash in early 2005. Record-high fuel costs, weak fares and the multiple hurricanes in Florida have compounded the airline's cash crunch, it said in a filing with U.S. regulators.

 

[mt2]

I believe this is why you'll see a deal or a CH 11 filing or both soon. I only hope that ATA employees don't get totally hosed in whatever happens.

I picked a bad week to stop sniffing glue !!

 

[ATA717Pilot]

Some employees in the Corporate Center received their terminating paycheck notification (w/ unused vaction paid out) yesterday morning.

When managment got wind of it the service link was shutdown while the remaining unopened e-mail notifications were removed. Managment then spun a story that it was just a glitch.

Considering yesterday was supposed to be the day for the "Big Announcement" and now we are hearing tomorrow or the weekend, it looks like somebody dropped the ball by allowing the final paycheck notifications to be sent after negotiations were delayed.

I wouldn't think the atmosphere in Corporate is too much fun after news of the terminating paychecks got out.

 

[Capt. Kramer]

Whatever happens this week, good luck to everyone at ATA!