Boeing to Help Carrier Avoid Cash Crunch

ATA announced Tuesday that it will be slowing down its payments and deferring deliveries of new Boeing jets, as it plans to keep making timely payments through the rest of 2004. The announcement came on the heels of the airline's failure to secure some hoped-for long-term financing.

Boeing Capital, along with GECAS and ILFC, agreed to let ATA postpone payments due from the end of June 2003 through March 2005, on planes acquired from 2001 through 2003.

ATA disclosed in SEC filings that it has entered into letters of intent with several of its aircraft lessors, to amend certain aircraft operating leases that were entered into with those parties in 2001, 2002 and 2003.

The effect of the amendments would be to delay the payment of portions of the amounts due under those operating leases primarily between June 30, 2003 and March 31, 2005, which would considerably enhance the Company's liquidity.

The payments delayed during this time period would be subsequently paid at various times throughout the remaining life of the amended leases. The effectiveness of the proposed operating lease amendments is contingent upon satisfaction of certain conditions, including entering into definitive amendments with each of these lessors and completion by September 30, 2003 of a restructuring of the Company's indebtedness.

FMI: www.sec.gov; www.iflyata.com