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Indianapolis, Nov. 1 - One of the biggest financial problems for ATA, leading to bankruptcy, was the airline's operations at Chicago's Midway Airport.
ATA operates 14 gates at Midway and, according to airline executives, ATA lost $10 million a month at the Midway operations.
In an effort to keep ATA in the air, Indianapolis city officials, along with the state, put together a financing package loaning ATA $15.5 million.
But there's a catch. The loan requirements are for the airline to keep its headquarters in Indianapolis, maintain 1,000 jobs and keep substantial hub operations at Indianapolis International Airport.
Orlando-based AirTran wants to pay $87 million to takeover the Midway gates in addition to the airline's presence in New York and Washington D.C. But that deal could take until early January to happen. It needs approval from the bankruptcy court judge.
At least one other airline, America West, is considering making an offer to all of ATA. A company spokesperson says, "We are on a very positive trend with the airline right now and we are not going to do anything to throw us off that track, so certainly it's a situation we are going to evaluate very carefully."
The deadline for submitting bids is November 23.
ATA operates 14 gates at Midway and, according to airline executives, ATA lost $10 million a month at the Midway operations.
In an effort to keep ATA in the air, Indianapolis city officials, along with the state, put together a financing package loaning ATA $15.5 million.
But there's a catch. The loan requirements are for the airline to keep its headquarters in Indianapolis, maintain 1,000 jobs and keep substantial hub operations at Indianapolis International Airport.
Orlando-based AirTran wants to pay $87 million to takeover the Midway gates in addition to the airline's presence in New York and Washington D.C. But that deal could take until early January to happen. It needs approval from the bankruptcy court judge.
At least one other airline, America West, is considering making an offer to all of ATA. A company spokesperson says, "We are on a very positive trend with the airline right now and we are not going to do anything to throw us off that track, so certainly it's a situation we are going to evaluate very carefully."
The deadline for submitting bids is November 23.
