ATA Flight Attendants OK New Contract

Nov. 23, 2005
The Indianapolis-based airline will extend wage, benefit and work-rule concessions that were ratified last October.

Flight attendants with bankrupt ATA Airlines Inc., have approved a new three-year contract.

The Indianapolis-based airline, which is working to emerge from bankruptcy, said Tuesday that the agreement with the Association of Flight Attendants will extend wage, benefit and work-rule concessions that were ratified last October.

The agreement is another step toward "strengthening the airline's financial position as we edge ever closer to successful emergence from Chapter 11," ATA Chief Executive John Denison said in a statement.

The contract, which covers about 1,000 flight attendants, will become effective Jan. 1.

ATA spokeswoman Michelle Foley said the carrier would not discuss details of the deal.

Last October, the flight attendants voted to accept a $24 million concession package that included a 10 percent pay cut.

Airline officials and union members have been negotiating since August. On Nov. 7, union leaders agreed to continue those concessions and forwarded the contract to members.

ATA, which is owned by ATA Holdings Corp., filed for Chapter 11 bankruptcy protection in October 2004. Once the nation's 10th largest passenger carrier, it has cut more than 3,000 jobs since it began reducing from a work force of 7,800 people two years ago.

The Indianapolis-based company expects to emerge from bankruptcy by early next year.

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