New Three-Year Contract Becomes Effective October 1st

ATA Airlines says its cockpit crewmembers, represented by the ALPA, have voted to ratify a new three-year collective bargaining agreement. The agreement contains wage, benefit and work rule concessions. The new contract becomes effective October 1st and will be amendable on September 30, 2008.

"Reaching this positive end to the negotiations is a terrific reflection on the teamwork of all those involved in the process," said ATA President and CEO John Denison. "By choosing to ratify, our cockpit crewmembers are demonstrating a steadfast commitment to this company that I have witnessed time and again from employees at all levels. With the CBA finalized and negotiations behind us, we can now focus on the final stages of restructuring that will lead to our emergence as a financially stable and growing airline."

The new contract "enhances the company's position" in seeking a $100 million capital infusion to complete a successful restructuring, said ATA Vice President of Strategic Planning and Chief Restructuring Officer Sean Frick.

"We continue to be encouraged in our ongoing efforts to secure funding," said Frick. "Last week's news that a consensual agreement was within reach was met with approval by our suppliers, creditors and potential investors. This latest announcement will only help to strengthen their confidence."

Senior Vice President of Labor Relations Richard Meyer agreed with Frick, while expressing appreciation on behalf of the Company for the cockpit crewmembers' contribution. "We are pleased cockpit crewmembers have again chosen to work with the Company during this critical period of restructuring," added Meyer. "They are taking a positive step toward securing a better long-term future for themselves and their fellow employees."

Short-term wage concessions were already in effect through Sept. 30, 2005 -- under an agreement between ATA and ALPA signed in June 2005. Since that time, negotiations continued with the goal of achieving long-term wage and productivity concessions.

On Sept. 17, 2005, ATA ALPA Master Executive Council (MEC) members forwarded a tentative agreement to cockpit crewmembers for voting on ratification. Today's announcement confirms their approval of the contract.

FMI: www.ata.com, www.alpa.org