US carrier ATA Airlines has filed for Chapter 11 bankruptcy protection and discontinued operations after the sudden cancellation of a crucial military charter contract.

ATA Airlines, based in Indianapolis, is a subsidiary of Global Aero Logistics whose carriers also include World Airways and North American Airlines.

It has halted all services from 04:00 today. The airline says: “A primary factor leading to these actions was the unexpected cancellation of a key contract for ATA’s military charter business, which made it impossible for ATA to obtain additional capital to sustain its operations or restructure the business.”

Chief operating officer Doug Yakola says: “We deeply regret the disruption and hardship caused by the sudden shutdown of ATA, an outcome we and our employees had worked very hard and made many sacrifices to avoid.”

ATA has been a long-term

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