INDIANAPOLIS, Sept. 19, 2005 (PRIMEZONE) -- ATA (ATA Airlines, Inc.) (Pink Sheets:ATAHQ) announces that it has reached a tentative agreement with its cockpit crewmembers, represented by the Air Line Pilots Association (ALPA), for a revised three-year collective bargaining agreement. As part of the agreement, the cockpit crewmembers will receive stock options to purchase common shares of the reorganized ATA Holdings Corp, in exchange for wage, benefit and work rule concessions. The tentative agreement is subject to a ratification vote of the cockpit crewmembers in the next two weeks.
"I am extremely pleased and grateful that everyone stayed committed to the negotiation process and worked through several difficult issues to reach this agreement," said ATA President and CEO John Denison. "If ratified, this new agreement will make it possible for ATA to continue on the path towards a successful emergence from bankruptcy by year-end 2005 or early 2006. The spirit of teamwork exhibited by our cockpit crewmembers in reaching this tentative agreement bodes well for the future of our Company. Our cockpit crewmembers are taking a positive step toward sharing the benefits of what we ultimately believe will be a company with an attractive equity stock valuation."
ATA has stated publicly that it is seeking an additional $100 million capital infusion in order to complete a successful restructuring. According to ATA Senior Vice President of Labor Relations Richard Meyer, finalizing this consensual agreement with its cockpit crewmembers will allow investors to see ATA as a much stronger and stable Company.
"Once ratified, we believe this will enhance ATA's ability to attract the capital necessary to reorganize," said Meyer. "By making these sacrifices, our cockpit crewmembers will help to secure a better future for themselves and their fellow employees. The Company appreciates their contribution."
Short-term wage concessions were already in effect through Sept. 30, 2005 -- under an agreement between ATA and ALPA signed in June 2005. Since that time, negotiations have continued with the goal of achieving long-term wage and productivity concessions. Today's announcement means ATA and ALPA are approaching the successful conclusion of those efforts.
On Sept. 17, 2005, ATA ALPA Master Executive Council (MEC) members approved forwarding the tentative agreement to cockpit crewmembers for ratification. Cockpit crewmembers will begin voting on ratification early next week with a targeted conclusion to the vote of Sept. 30, 2005. If ratified, the new contract will be effective Oct. 1, 2005 and become amendable on Sept. 30, 2008.
ATA Airlines, headquartered in Indianapolis, now in its 32nd year of operation, offers "easy" and affordable travel to major business centers and popular vacation destinations like New York, Dallas/Ft. Worth, Hawaii, Florida, Mexico and the Caribbean. Through direct and connecting codeshare flights, ATA now serves customers in more than 70 markets. From its major hub operation at Chicago's Midway Airport, the airline offers 12 nonstop flights to the New York area every business day and a convenient daily schedule of nonstop flights to many other locations. For more information, visit ata.com.
Founded in 1931, ALPA is the world's largest pilot union, representing 64,000 pilots at 42 airlines in the United States and Canada. Visit the ALPA web site at http://www.alpa.org.
Caution Concerning Forward-Looking Statements: This communication contains certain "forward-looking statements." These statements are based on ATA Holdings Corp.'s management's current expectations and are naturally subject to uncertainty and changes in circumstances. Except to the extent required under the federal securities laws, ATA Holdings Corp. is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.