Delta Airline File Bankruptcy

Admin | November 06, 2011 | Comments Off

Delta Airline File Bankruptcy

Delta Airline File Bankruptcy

Yesterday, on April 2, 2008, ATA Airlines filed for Chapter 11 in U.S. Bankruptcy Court in their home base of Indianapolis, Indiana.

Less than 24 hours later, the airline issued an early morning press release that they were ceasing all operations effective immediately, leaving thousands of passengers stranded. Not even the employees had any warning.

Why Did ATA Go Bankrupt?

According to the press release issued by the airline, problems occurred following the loss of a key military charter contract. A later article by the website The Consumerist relayed further information from an “ATA insider” who elaborated that the “airline lost an important contract [with Federal Express] that involved the AMC [Air Mobility Command] and became financially insolvent.”