UPDATE: FedEx Must Pay $66 Million To Former ATA Airlines - Jury
25 Octubre 2010 - 4:57PM
Noticias Dow Jones
FedEx Corp. (FDX) has been ordered to pay $66 million to ATA
Airlines Inc., more than two years after ATA filed for bankruptcy
and ceased operations, blaming FedEx for much of its financial
problems.
A jury for the U.S. District Court in Indianapolis agreed with
ATA that FedEx breached a contract with the Indianapolis-based
airline. It awarded ATA about $22 million in lost profit for
fiscal-year 2008 and about $44 million for fiscal 2009.
FedEx spokeswoman Sandra Munoz said FedEx is reviewing its
options and may appeal the jury award.
"With all due respect to the jury, we disagree with the
findings," Munoz said, although she declined to elaborate.
ATA filed for bankruptcy protection in April 2008 and
immediately ceased all operations, blaming the "unexpected"
termination of a military transport subcontract overseen by FedEx.
At the time, ATA said it was the largest provider of transport for
U.S. military personnel and their families under the program run by
the Air Mobility Command, or AMC, of the U.S. Air Force.
ATA, which had been restructuring its smaller commercial
passenger business, said the loss of the military business left it
unable to secure additional funding or a strategic buyer or
partner. The military business accounted for $335 million of ATA's
total revenue of $402 million in 2007, according to its 2008
bankruptcy filing.
ATA sued FedEx in June 2008.
-By Bob Sechler, Dow Jones Newswires; 512-258-1690;
bob.sechler@dowjones.com
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