ATA closes operations, files Chapter 11

ATA Airlines shut down operations and stranded thousands of travelers Thursday when an unexpected loss of key charter flights and soaring fuel costs forced the carrier into bankruptcy.

Once the nation's 10th-largest air carrier, ATA entered bankruptcy for the second time in just over three years. The company had more than 2,200 employees, and "virtually all" were told that their jobs were gone, company spokesman Michael Freitag said.

Many passengers learned of the collapse at ticket counters, where advisories were posted in the handful of cities ATA still served. About 10,000 passengers flew ATA each day when operations were shut down, according to the airline.

Airlines are struggling with rising fuel prices, labor strife, depressed ticket demand and heightened competition, said George Godlin, an analyst for Moody's Investor Service.

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