ATA files for bankruptcy, 2,200 out of work

This Indy-based layoffs story is making national news:

ATA Airlines canceled all flights Thursday after filing for bankruptcy as it posted advisories at ticket counters in the handful of cities it still served and sought help for stranded travelers.

The Indianapolis-based airline, once the nation's 10th-largest, entered bankruptcy for the second time in just over three years Wednesday, this time citing the loss of a key military charter business.

The airline had approximately 50 flights per day, mostly between Hawaii and four west coast cities _ Oakland, Los Angeles, Phoenix and Las Vegas, said company spokesman Michael Freitag.

ATA said has been in contact with other airlines that may be able to assist with travelers holding tickets that the airline can no longer honor.

On its Web site, the airline apologized for the disruption and suggested that customers seek alternative travel arrangements.

The company had over 2,200 employees, Freitag said.

"Virtually all of ATA's employees are being notified today that their positions are eliminated," Freitag said.