Air Tran sells $90 million in gate leases
Bankrupt American Trans Air (ATA), the 10th-largest US airline, sold almost $88 million in gate leases to AirTran Airways Inc.
AirTran Holdings will assume ATA’s flight operations, gate leases and routes at Chicago Midway Airport, and arrival and departure slots at New York’s LaGuardia Airport and Ronald Reagan Washington National Airport.
The deal, subject to approval by the bankruptcy court, is expected to take effect by the end of the year.
Said ATA founder and CEO George Mikelsons:
“We will recreate ATA as a formidable, low-cost carriers.”
In its filing, ATA seeks bankruptcy protection for eight corporate entities from more than 1,000 creditors. The filing lists assets of about $745 million and debts of more than $940 million.
AirTran will operate some flights under a codeshare agreement with ATA.
A spokeswoman for Indianapolis-based ATA said ATA was pleased with the deal, according to Reuters.
America West Holdings said last week it was still considering whether to bid for pieces of ATA.
The deal also provides that ATA will maintain its current flight service levels at Midway until January 11. After that date, ATA will provide up to 12 planes — plus crew, maintenance and insurance for those aircraft — to AirTran until AirTran takes delivery of its own aircraft next year to fill those posts.
Orlando-based AirTran also said it will assume responsibility for certain passenger tickets previously sold by ATA for travel to or from Midway Airport.
Report by David Wilkening
David
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