26-Oct-2010 10:25 AM

FedEx ordered to pay defunct ATA USD66m

FedEx Corp was ordered to pay ATA Airlines USD66 million by a jury for the US District Court in Indianapolis, claiming the company broke a contract that ultimately forced ATA into bankruptcy (The Associated Press, 25-Oct-2010). The jury awarded ATA USD22 million for lost profit in 2008 and USD44 million for lost profit in 2009. ATA filed for bankruptcy on 02-Apr-2008 and ceased operations on 03-Apr-2008. It sued FedEx in Jun-2008 over its decision to end a military charter business, a move which ATA claims forced it to seek bankruptcy protection. Fedex spokeswoman Sandra Munoz said it was reviewing its options and may appeal the award (The Wall Street Journal, 25-Oct-2010).