ATA stops flying, files for Chapter 11

© Boeing

For the second time in recent weeks a U.S. airline has filed for Chapter 11 Bankruptcy protection and stopped flying passengers. First, it was Aloha Airlines.

Now there is word that discount airline ATA has followed suit – citing the “unexpected cancellation” of a key military charter contract, and soaring fuel prices.

The move could put travelers who want to fly to Hawaii in a bind. Aloha provided a fairly significant number of seats between the Islands and the U.S. Mainland, and ATA was fashioning its schedule around low-fare flights out of Oakland to Hawaii. Now, both those continental conduits are kaput. The upshot could be increased prices to paradise – at least until the market rights itself.

In a prepared statement, ATA said it was “no longer able to honor any reservations or tickets,” and was working with other airlines to accommodate flyers.

The carrier says it has engaged in “extensive discussions” in an effort to raise new capital of late.

Another consequence of the shutdown will be ATA’s marketing arrangement with fellow discount airline Southwest. The arrangement allowed ATA passengers to be booked onward on Southwest flights, and vise versa. The deal allowed each carrier to, in effect, stretch its route structure.

© Cheapflights Ltd Jerry Chandler

Related article: Goodbye Aloha - historic carrier shuts down

Comments

[Den]

Wow, sorry to hear this. We flew them to Maui (Southwest and ATA) last month and it was the best round-trip to Maui we ever had. Service was great!

[Evelyn Johnson]

I have an eticket on ATA. Are they flying or not?

[jenny gonzalez]

I just received vouchers to fly from ATA and so where does this leave me?