ATA Issues Two-Stage EETC

ATA (American Trans Air, Inc.), the principal subsidiary of ATA Holdings Corp. (Nasdaq:ATAH), closed the final part of a $260 million enhanced equipment trust certificate (EETC) debt offering that financed nine new Boeing 737-800 aircraft delivered in 2002. The ATA 2002-1`s were a private placement issued in two tranches: 2002-1A and 2002-1B. Morgan Stanley acted as the placement agent. All nine aircraft have been delivered to ATA and placed under leveraged leases.

The second stage of the EETC, valued at $117 million was funded in October. The funding was used to finance four new Boeing 737-800`s that were delivered between October 15 and December 3. During the summer, ATA closed the first part of the financing for $143 million. The 2002-1A final maturity is August 2014; average life is 7.6 years. The 2002-1B final maturity is August 2009 with a 3.4-year average life.

This unusual two-stage funding, an industry first, enabled ATA to avoid significant pre-funding carrying costs. The fundings matched ATA`s 2002 Boeing 737-800 delivery schedule. The note purchasers agreed to common pricing for their committed portions of the $260 million issue.

ATA Executive Vice President and Chief Financial Officer Ken Wolff said, “We are pleased with the completion of this transaction in the difficult post September 11 capital markets for airlines”.

ATA Holdings Corp. common stock trades on the NASDAQ Stock Market under the symbol “ATAH”. ATA has a fleet of 28 Boeing 737-800`s, 16 Boeing 757-200`s, 10 Boeing 757-300`s, and 10 Lockheed L1011`s. Chicago Express Airlines, Inc., the wholly owned commuter airline based at Chicago-Midway Airport, operates 17 SAAB-340B`s.

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Now celebrating its 30th year of operation, ATA is the nation`s 10th largest passenger carrier based on revenue passenger miles. ATA operates significant scheduled service from Chicago-Midway and Indianapolis to over 40 business and vacation destinations. To learn more about the Company, visit the website at www.ata.com.

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