ATA Files for Bankruptcy, Cancels All Flights

American Trans Air ceased operations following an April 2nd filing under Chapter 11 of the U.S. Bankruptcy Code. It posted advisories at ticket counters as it entered bankruptcy for the second time in just over three years.

ARC said that, effective immediately that it would not process TZ-validated CASH REFUNDS submitted in sales reports for the week ending April 6, 2008. Other TZ transactions, including credit card refunds, will be processed in the PED 4/06/08 sales report.

ATA apologized for the disruption on its website. It said that ATA customers who had purchased tickets using a credit card should contact their credit card company or travel agency directly for information about how to obtain a refund for unused tickets. It said that it currently was unable to provide refunds to customers who purchased tickets directly from ATA with cash or a check.

These customers may be able to obtain a full or partial refund for their unused tickets by submitting a claim in ATA’s Chapter 11 proceedings. US Airways will accept tickets for standby travel from passengers who were scheduled to fly on ATA Airlines flights to/from the Hawaiian Islands and Mexico.

Southwest has implemented a plan to take care of all customers who purchased a ticket on Southwest and are scheduled to travel on ATA service by rebooking them on a new itinerary, or offering a full refund for any unused portion of a ticket.