Oct 14, 2005 9:36 am US/Central
ATA Cuts Routes, Jobs
INDIANAPOLIS (AP) ―
Discount carrier ATA Airlines will discontinue service between Chicago and Boston, Minneapolis and Newark, N.J., as it strives to emerge from federal bankruptcy protection.
The Indianapolis-based airline will also lay off about 100 employees and is dropping plans to begin service from Chicago-Midway to Miami and Sarasota, Fla., the company said Thursday.
"Increased capacity, fluctuating demand and skyrocketing fuel prices created a financial reality we simply could not ignore," ATA senior vice president Subodh Karnik said.
The airline did not say how many passengers traveled the routes or how much money it would save from the cancelations.
Flights from Chicago's Midway Airport to Boston will end Oct. 28. Flights from Chicago to Newark will end Oct. 29, and flights from Chicago to the Minneapolis/St. Paul International Airport will end Dec. 1.
ATA, which is owned by ATA Holdings Corp., filed for Chapter 11 bankruptcy protection in October 2004. It has cut more than 3,000 jobs since it began downsizing from a work force of 7,800 people two years ago.
Passengers with plans to travel on the canceled routes will be rebooked on other carriers or given refunds for their ticket.
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