INDIANAPOLIS, Nov. 16 (UPI) -- Bankrupt Indianapolis-based ATA Airlines lost $30.9 million in the third quarter, bringing losses through the end of September to $120.9 million, ATA said.
The low-fare carrier filed for federal Chapter 11 protection from creditors on Oct. 26 citing rising jet fuel prices, fare wars with rival low-fare carriers and millions in lease payments on new Boeing 737 and Boeing 757 jetliners.
ATA has spent $92.4 million since June 30 and reported $57.6 million cash on hand Sept. 30.
A federal bankruptcy judge Monday approved a $15.5 million bailout loan by the state of Indiana. The Indiana Transportation Finance Authority will buy equipment and ATA assets and lease them back to the carrier to preserve jobs. ATA has 7,700 employees and major hubs in Chicago and Indianapolis.
The judge will consider a timetable for the sale of ATA's assets at a bankruptcy hearing Thursday.
