ATA Airlines: Another Bankruptcy
April 3, 2008 by Douglas A. McIntyreAt Aloha Airlines the reason for Chapter 11 was high fuel costs and too much competition. Overnight ATA Airlines went into bankruptcy because it lost a key military contract. As the reasons add up, filing Chapter 11 is back for the industry.
Carriers like AMR (AMR) and Delta (DAL) are still near 52-week lows. High fuel costs and falling passenger bookings due to a recession could make those stock prices worse. Most airlines have too much debt and are heading toward a period of too little cash flow.
The airline industry is one were going into bankruptcy is almost a badge of honor. It is likely to happen to some large carriers this year..
Or, they could merge with the car companies.
Douglas A. McIntyre
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