ATA Reduces Capacity

flx757

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ATA Holdings to reduce service capacity


Tuesday August 20, 9:01 PM EDT

INDIANAPOLIS, Aug 20 (Reuters) - ATA Holdings Corp.(ATAH), parent of low-cost carrier American Trans Air Inc., on Tuesday said it would reduce planned capacity starting in September in order to return the company to profitability.

Indianapolis-based ATA said the moves, which include the elimination of Lockheed L-1011 aircraft from scheduled service, will cut costs and conserve cash. The company reported a steep quarterly loss in late July due to a slowdown in the travel recovery since the Sept. 11 attacks and low fares.

"The airline industry must match capacity to demand immediately if the revenue environment is to improve," said company chairman and chief executive George Mikelsons.

"These actions will have an immediate effect on ATA's cash balances and will be the first of many steps toward flying ATA back to profitability."

Starting in September, scheduled service will be flown entirely by Boeing 757 and Boeing 737 aircraft, the company said. The remaining Lockheed L-1011 fleet will continue to be used for a charter contract with U.S. military, the company said.

ATA will also eliminate one daily trip from each of its Chicago-Midway to Denver, Newark, Ft. Lauderdale, St. Petersburg, and Philadelphia markets, it said.
 

sayagain?

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ATA interviewed in August and I had heard plans on September interviews. Now, is it all a lost cause?

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