INDIANAPOLIS, Dec. 22 (UPI) -- An Indianapolis bankruptcy judge has OK'd a $117 million deal between Southwest Airlines and ailing ATA Airlines, the Indianapolis Star reported Wednesday.
The deal gives Southwest six ATA gates at Chicago's Midway Airport in the first quarter and lets it take a 27.5 percent stake in ATA next year. The gates are the security for a federal bailout loan, as well as Southwest's short-term loan of $40 million.
ATA also will be able to sell Southwest tickets to travelers who use both airlines on one trip, which could pour 500,000 passengers each year onto ATA planes.
Also, an unnamed former Southwest executive will oversee the restructuring of the 7,700-employee Indianapolis airline.
Southwest, which outbid ATA for the assets, stepped in after it appeared the nation's No. 10 airline might scale back into a regional carrier with as few as 1,000 local employees.
