http://biz.yahoo.com/rf/040429/airlines_ata_1.html
Reuters -- ATA says may order Boeing or Embraer 100-seat jets
Thursday April 29, 3:22 pm ET
By Chris Stetkiewicz
SEATTLE, April 29 (Reuters) - U.S. low-fare carrier ATA Airlines on Thursday said it was considering an order for 100-seat jetliners from either Boeing Co. (NYSE:BA - News) or Embraer SA (Sao Paolo:EMBR3.SA - News)
to expand into new routes and shrink its average aircraft size.
Indianapolis-based ATA, the No. 10 U.S. airline and a unit of ATA Holdings (NasdaqNM:ATAH - News), was weighing Boeing's 717 model against Embraer's 190 to augment its fleet of larger aircraft, including Boeing 737-800s and 757s.
"ATA airlines currently flies the largest number of seats on average of any scheduled carrier, which is yield-limiting in today's environment", said George Mikelsons, ATA's Chairman, President & CEO.
"Operating a fleet of 100-seat aircraft would provide a cost-effective and flexible means of expansion for ATA, while improving unit revenues," Mikelsons said in a prepared statement.
The carrier did not say how many aircraft it was considering.
A union official said the new aircraft would replace some of the 757-200s and -300s, seating 200 to 247 passengers, and the 175-seat 737s, which would be shifted to higher capacity routes.
"We would prefer Boeing, but we understand we need to get the best bang for the buck," Erik Engdahl, local chairman of the Air Line Pilots Association (News - Websites) , told Reuters by telephone.
Representatives for Boeing's Seattle-based jetliner unit and Brazil's Embraer were not immediately able to comment.
ATA is a long-standing Boeing customer and currently operates 66 jetliners, many of which were financed or leased with help from the manufacturer's Boeing Capital Corp. unit.
ATA also operates 17 smaller Saab 340B turboprop aircraft on short-haul regional routes.
ATA ordered 47 Boeing jets in 2000, of which nine have not yet been delivered, including two 737s due in 2004 and seven more pushed back to 2007.
The carrier in January restructured $300 million in debt, pushing back most of its payments to 2009 or 2010 and cementing a deal to cut its aircraft lease payments of $150 million, thereby avoiding bankruptcy.
Like many airlines, ATA suffered a serious cash crunch as air travel demand dried up following the Sept. 11, 2001, hijack attacks in the United States.
ATA is the largest carrier at Chicago's Midway Airport and said in February that it may launch flights to Europe by the summer of 2005.