ATA to cut capacity

Star-Bulletin staff and wire

INDIANAPOLIS >> The parent company of American Trans Air announced yesterday that it will reduce capacity by making fleet changes and cutting costs starting next month.

Beginning with the elimination of Lockheed L-1011 aircraft from scheduled service, ATA will reduce 2002-04 scheduled service capacity and conserve cash. The airline also will cut a daily flight from Chicago to five cities it serves: Denver, Newark, Ft. Lauderdale, St. Petersburg, and Philadelphia.

"The airline industry must match capacity to demand immediately if the revenue environment is to improve," George Mikelsons, ATA chairman and chief executive, said in a statement. "These actions will have an immediate effect on ATA's cash balances and will be the first of many steps toward flying ATA back to profitability."

ATA's Hawaii service is not affected by the cuts, said spokeswoman Lisa Jacobson Brown.

ATA runs six flights a day to Honolulu from the West Coast and less frequent California to Maui and California to Kauai service.

However, all of those flights are chartered by tour wholesaler Pleasant Hawaiian Holidays and the airline does not run its own scheduled service to the islands.

Indianapolis-based ATA is the nation's 10th largest passenger carrier, based on revenue passenger miles.

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