ATA Goes Bankrupt, Cancels All Flights

No ticket refunds given
By Kevin Spak,  Newser Staff
Posted Apr 3, 2008 7:57 AM CDT
Customers check in for flights with ATA Airlines at Midway Airport October 26, 2004 in Chicago, Illinois.   (Scott Olson/Getty Images)
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(Newser) – Passengers booked on ATA Airlines flights got a rude awakening this morning: The low-cost carrier declared bankruptcy in the middle of the night, shut down operations, and canceled all further flights, Eyewitness News reports. “Unfortunately, we were not in a position to provide our customers or others with advance notice,” the company said in a statement.

Losing a key military contract was the final nail in ATA’s coffin, according to the statement. The Indianapolis-based airline employed some 2,230 employees. Passengers who paid with credit cards might be able to get a refund through their card agency, the company said, but those who paid with cash or check are out of luck.