INDIANAPOLIS, Nov. 12 (UPI) -- Indianapolis-based ATA Airlines is asking a bankruptcy judge for permission to sell one-third of its assets including 17 prized airport gates in three cities.
The nation's 10th largest airline filed for federal Chapter 11 bankruptcy protection Oct. 26 citing soaring jet fuel costs and fare wars with other discount carriers.
ATA hopes to raise $87.5 million by selling 14 gates at its hub at Chicago's Midway Airport, two at New York's LaGuardia and one at Reagan National in Washington, the Indianapolis Star said.
ATA faces more than $500 million in lease payments on 59 newer Boeing 737 and Boeing 757 jets in 2005 and 2006.
Chairman J. George Mikelsons, who built ATA from a charter carrier in 1973, said the airline may reduce its fleet from 82 planes to about 50, shrinking the airline by about a third.
Arizona-based America West Airlines is considering bidding on all or part of ATA.
