ATA To Suspend Some Services

Bankrupt low-cost carrier ATA Airlines said on Tuesday it would suspend service to and from Denver, Indianapolis and San Juan, Puerto Rico, to combat high fuel costs and excess capacity.

ATA cited fluctuating demand and stiff competition on those routes as reasons for the suspension, which takes effect on January 10.

The airline, which is based in Indianapolis, said it would retain its headquarters there despite suspension of service from that city.

The airline industry has been battered by soaring fuel costs and overcapacity. Some carriers recently have cut service on unpopular routes in order to save money.

ATA said last month that it would cut service from Chicago to Boston, Newark and Minneapolis/St. Paul this year to trim costs as it restructures under bankruptcy protection. ATA also said it would suspend the launch of new service between Chicago and Miami and Sarasota, Florida.

(Reuters)