ATA Airlines Files for Bankruptcy, Cancels All Flights

Breaking News
Second airline this week to cease operations
Low-fare carrier ATA Airlines said it has filed for Bankruptcy Court protection and ordered the grounding all flights as it halted operations. The last scheduled flight landing early this morning. Nearly all of the airline's 2,230 employees were let go. Meanwhile, thousands of passengers were stranded at Oakland, Los Angeles, Chicago-Midway, and other airports across the U.S.

Earlier this week, citing chronic financial problems, Aloha Airlines announced the immediate end to all passenger flights. This left passengers scrambling to find new flights.

ATA airlines, which operated several daily flights from the mainland U.S to Hawai'i, blames the loss of a key military charter contract. In addition to scheduled airline service, ATA also provided charter service for the Pentagon.

ATA said passengers should seek alternative travel arrangements on their own. This morning Northwest Airlines announced that for a $100 fee, passengers confirmed on an ATA flight can standby for a flight on their airline. Southwest Airlines, which codeshared flights with ATA said they too will assist affected ATA customers.

ATA Airlines Shrinks Airline, Drops Oakland - Chicago

Citing high fuel costs, discount-carrier ATA says it will slash flights out of Chicago Midway (MDW) Airport over the next couple months, including dropping Oakland - Chicago service effective April 14th. ATA once dominated Midway Airport, but since emerging from Bankruptcy a couple years back, cutting routes and expanding code share service with Southwest Airlines, less ATA can be found at MDW.

ATA says its scheduled service to Hawai'i and other Charter flights are not affected by the announcement.Passengers who have purchased tickets on the Oakland-Midway route for travel after April 14th will receive a full refund.