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ATA Stops Flying, Files Bankruptcy

Two airlines park their fleets in one week

By Mark Huffman
ConsumerAffairs.com

April 3, 2008

The Indianapolis-based airline, which had operated for 35 years, blamed the shutdown on the loss of its key military charter business. It said it regretted not giving passengers more notice.

ATA's action comes just a few days after Hawaii's Aloha Airlines shut down its operations, leaving some customers stranded and others hoping to recover loyalty rewards and pre-purchased trips. High fuel costs and increasing competition from a new carrier, go! Airlines, were to blame, management said.

ATA's shutdown took many passengers by surprise. While Aloha had filed for bankruptcy prior to shutting down, ATA filed its bankruptcy petition and simultaneously shut down its operations.

"We apologize for the disruption caused by the sudden shutdown of ATA and regret the impact on passengers, employees, suppliers, and other parties," the airline said in a statement. "ATA customers should seek alternative arrangements for current and future travel."

The news gets worse for customers. The airline said it is unable to provide refunds to customers who purchased tickets directly from the airline with cash or a check.

"These customers may be able to obtain a full or partial refund for their unused tickets by submitting a claim in ATA's Chapter 11 proceedings," ATA said.

ATA customers who purchased tickets using a credit card should be able to have the charge removed by contacting their credit card company or travel agency directly for information about how to obtain a refund for unused tickets.

ATA also operated some flights for Southwest Airlines under a codeshare agreement. The airline said passengers who had booked passage on ATA flights through Southwest should call Southwest Airlines directly at (800) 308-5037.

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