INDIANAPOLIS -- FORUM Credit Union said it will work with members who are now unemployed following the shutdown of ATA Airlines earlier this month.
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. Of its 2,230 employees, the carrier had 585 employees at its Indianapolis headquarters.
Meanwhile, the $1.1 billion FORUM said it is preparing to assist the roughly 200 members previously employed by ATA through its internal "Work Out" program, said Larry Kunkel, chief operating officer.
"The impact [of the ATA shutdown] is somewhat negligible," Kunkel said, adding the community-chartered credit union serves several select employee groups and more than 104,000 members. "We have a few members that are ATA employees and obviously, we will work with them as we do with other members who are being displaced or have lost jobs."
Kunkel said of the 200 members affected by the airline's demise, less than 100 have loans through FORUM. Restructuring loans and providing financial counseling assistance are among the services offered, he added.
ATA joined Honolulu-based Aloha Airlines, Columbus, Ohio-based Skybus Airlines and Milwaukee-based Skyway Airlines in the number of carriers that have ceased operations over the past few weeks.
--msamaad@cutimes.com
