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Troubled airline suspends services

As part of its continuing effort to create an efficient route
structure and profitable business plan, ATA has announced that
it will be suspending service to/from the cities of Indianapolis, Denver and San Juan,
Puerto Rico as of Jan. 10, 2006.“Fluctuating demand, excess capacity and high fuel costs were central to all of today’s
announced suspensions,” explained ATA Senior Vice President and Chief Commercial
Officer Subodh Karnik. “As a carrier, we must always balance our ability to generate
sufficient revenue on each particular route against its operating costs. In Denver alone,
carriers such as Ted, Frontier and now Southwest Airlines are intensifying competition.
All airlines, particularly those in bankruptcy, must make these types of decisions to
sustain profitability.”
ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick
agreed. “By making these adjustments, we improve our ability to achieve a profit in a
shortened time frame. In turn, this strengthens our position in creating an appropriate
structure for successful emergence in early 2006.”
The Company intends to maintain its headquarters in Indianapolis. ATA has signed an
agreement with the Indianapolis Airport Authority to retain its lease of corporate office
space on airport property.