ATA Airlines has shut down all operations after it filed for Chapter 11 bankruptcy protection.
ATA Airlines blames the increase of jet fuel prices. Fuel prices still remain above $100 a barrel. Oil prices, coupled with a steadily weakening United States economy, has stalled the airline industry's modest recovery from the 2001-2006 downturn.
By: Ryan Culver
Apr 3, 2008 14:45 PM GMT
ATA Airlines Inc said on Thursday it shut down all operations after filing for bankruptcy protection. The airline closer decision was made after a key military charter agreement was canceled.
The low cost airline and its rivals have also been hurt by jet fuel prices. ATA is the second airline to file for voluntary bankruptcy in the past few weeks. Aloha Airlines shut down its passenger operations on Sunday, two weeks after it filed for bankruptcy protection.
"ATA's scheduled service business had been severely impacted by the dramatic and unprecedented increase in the price of jet fuel in recent months," said ATA in a brief statement.
Jet fuel prices are having an impact on the airline industry and remains above $100 a barrel. Oil prices, coupled with a steadily weakening United States economy, has stalled the airline industry's modest recovery from the 2001-2006 downturn.
Other airlines are reducing workforce operations to cope. On March 18, Delta Air Lines Inc recently unveiled plans to cut 2,000 jobs and scale back flights.
Airline carriers have also moved to pass on fuel costs to travelers through higher fares and surcharges. Some airlines have opened new revenue streams by charging for products and services that previously had been included in the price of a ticket.
|
