ATA Holdings Corp. Reduces Indianapolis Operations

– Maintains most Indianapolis flights through April 10th

– Continues nonstop flights out of Indianapolis to four markets and all U.S. Military and Hawaii operations

– ATA Holdings Corp. headquarters to remain in Indianapolis ATA Airlines and Southwest Airlines to continue codesharing agreement

– ATA Airlines to contact and re-accommodate any affected passengers

INDIANAPOLIS, Jan. 26 /PRNewswire-FirstCall/ — ATA Holdings Corp. (ATAHQ), today announced plans to reduce its schedule in Indianapolis as a result of fierce competition in the Indiana market. As part of its overall reorganization, the changes will entail significant adjustments to ATA’s flight service through Indianapolis.

George Mikelsons, ATA’s Chairman, President and CEO said, “I want to thank the people of Indianapolis for all their support of ATA in our three decades of service in what I believe is the best city for a corporation to be based. I am saddened by the necessary changes to our service in our hometown, but ATA hopes to return to these routes when the market adjusts to reasonable levels.”

Beginning in April, ATA will provide daily flights from Indianapolis to Orlando, Ft. Myers, Las Vegas and Los Angeles. Effective February 28, ATA will end service from Indianapolis to San Francisco, Dallas and New York. Effective April 10, ATA will end service from Indianapolis to Cancun, Ft. Lauderdale, Sarasota, St. Petersburg and Phoenix.

Effective March 28, ATA will end Chicago Express service from Chicago to Flint, South Bend and Grand Rapids, as well as recently-announced service from Indianapolis to Evansville, Milwaukee, South Bend, Fort Wayne and Flint. Service from Indianapolis to Gary, IN, previously scheduled to start February 1, will not be initiated.

“We have taken aggressive actions to ensure the long-term competitiveness of ATA now and in the future,” said Gil Viets, ATA’s Executive Vice President and CFO. “By making these moves now, we can adapt our business to the industry’s difficult market dynamics and continue on our path of transformation.”

The adjustments in Indianapolis are necessary steps in ATA’s reorganization, which include the airline’s announcement in December that it accepted a bid of Southwest Airlines for acquisition of certain of ATA’s Midway Airport lease rights, providing ATA a continuous presence in Chicago- Midway. As part of the deal, ATA and Southwest Airlines entered into a codesharing agreement for Chicago-Midway routes, representing the first significant codeshare for both airlines.

“We will be offering our customers who are impacted by this change a variety of options. They will be contacted by one of our Reservations Associates in the near future to discuss their options,” said Doug Yakola, Senior Vice President, Customers and Ground Operations.

About ATA Airlines

Now in its 32nd year of operation, ATA (ATAHQ) has one of the most fuel- efficient fleets among the major carriers, featuring the new Boeing 737-800 and 757-300 aircraft. For more information, visit the web site http://www.ata.com/.

Forward-looking statement:

Certain of the information contained in this press release should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect ATA’s current views with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of ATA and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the companies to continue as going concerns; the ability of the companies to operate pursuant to the terms of the debtor-in-possession financing facility; the companies’ ability to obtain bankruptcy court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the ability of the companies to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; risks associated with third parties seeking and obtaining bankruptcy court approval to terminate or shorten the exclusivity period for the companies to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the companies’ liquidity or results of operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives and associates; the ability of the companies to attract and retain customers; demand for transportation in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack, labor costs; financing costs; the costs and availability of aircraft insurance; aviation fuel costs; security-related costs; competitive pressures on pricing (particularly from lower-cost competitors); weather conditions; government legislation and regulation; consumer perceptions of the companies’ products and services; and other risks and uncertainties set forth from time to time in ATA’s reports to the United States Securities and Exchange Commission.

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