INDIANAPOLIS -- For Indiana credit unions, it may still be too early to determine how widespread of an impact the shutdown of ATA Airlines Inc. will have on members who were employees of the Indianapolis-based carrier.
The airline filed for Chapter 11 bankruptcy protection on April 2 but was forced to cease operations after an unexpected cancellation of a key contract for ATA's military charter business, which made it possible for the airline to obtain additional capital to sustain its operations or restructure the business, ATA said in a statement.
At the time of the shutdown, ATA had approximately 2,230 employees, including approximately 600 pilots, more than 800 flight attendants and more than 100 mechanics, according to the carrier. ATA had approximately 585 employees at its headquarters in Indianapolis.
A handful of high-profile credit unions are based in Indianapolis, including $1.1 billion FORUM CU, $1.1 billion Indiana Members CU and $341 million Finance Center FCU. On April 4, the Indiana Credit Union League sent out a query to the state's credit unions asking if they had members that were impacted by the shutdown of ATA Airlines. At press time, no responses were received, according to Kay Neidlinger, vice president of communications at the league.
Approximately 200 members of Finance Center FCU were ATA Airline employees, said Roger Youngs, president/CEO. As of April 8, he said the credit union had not heard from any of those members but was expecting that to change soon.
"Some of these people got blindsided. When they were told they were let go, [the company] ceased health benefits and they no longer had vacation time," Youngs said. "It was like a deer being caught in headlights."
Calls to FORUM and Indiana Members were not returned by press time.
ATA Airlines said it suffered a major blow when FedEx Corp. notified the carrier that it would no longer be a member of the FedEx teaming arrangement, according to a statement on its Web site (www.ata.com). This arrangement gave the airline a significant share of the airlift contracts under the International Program of the Department of Defense Air Mobility Command, which facilitates transportation for military personnel and their families to and from overseas destinations. This arrangement accounted for most of ATA's Airlines' charter business.
ATA Airlines joined Honolulu-based Aloha Airlines (see related story, above), Columbus, Ohio-based Skybus Airlines and Milwaukee-based Skyway Airlines in the number of carriers that have ceased operations over the past week. The $1 billion Wright-Patt CU has informed members that if they purchased Skybus tickets with their credit union credit or debit cards, they can either file a dispute online through its eZCardInfo link or call the member help center.
--msamaad@cutimes.com
