ATA, R.I.P

Posted by: Justin Bachman on April 03

ATA Airlines ended service today, scrubbing all flights as of 4 a.m. EDT. The immediate cause of its demise was the loss of a military charter contract, but oil above $100 and a balance sheet that never fully recovered after its 2006 emergence from Chapter 11 were also factors. The shutdown comes two weeks after Aloha Airlines did the same.

The airline said it sought capital and a buyer, but was unable to secure either. The company, which code-shared flights with Southwest, flew about 10,000 people per day. It was once the largest player at Chicago’s Midway Airport, but had planned to end flights there on Apr. 14. The company had about 2,300 employees.

ATA, founded 34 years ago in Indiana, is advising passengers to contact their credit card companies for refunds, and said on its Web site: “Unfortunately, we were not in a position to provide our customers or others with advance notice.”