ATA Airlines Cutting 450 Jobs
INDIANAPOLIS (AP) -- ATA Airlines is cutting an additional 450 jobs as it works to emerge from bankruptcy protection, the airline said Friday.
The Indianapolis-based airline plans to cut the jobs - about a quarter of its Indianapolis work force - as it outsources its maintenance and passenger reservations divisions to other companies.
Employees were notified of the job cuts on Friday.
The company blamed the cuts on changes in the airline industry.
''ATA must adapt to this new environment to survive,'' Chief Executive Officer John Denison said.
The airline said it expected the outsourcing of maintenance work would save $100 million over the next five years.
The job cuts cover about 350 maintenance and 100 call-center workers. Of those, an undisclosed number are being furloughed and could be recalled later.
ATA Holdings Corp., parent of the airline, filed for bankruptcy protection in October amid fare wars and escalating jet fuel prices that drained income needed to pay for expensive jet leases. The airline has since cut most of its flights in Indianapolis, concentrating on Chicago's Midway airport.
ATA Airlines now operates 45 jets, down from 67 a year ago.