ATA Sues FedEx For Breaking Charter Pact

Law360, New York (June 12, 2008, 12:00 AM EDT) -- ATA Airlines Inc. has sued FedEx Corp. for allegedly driving the airline into bankruptcy after the air-cargo shipper dropped it from a military transportation deal that generated more than $400 million in annual revenues for ATA.

The airline filed an $180 million breach-of-contract suit Wednesday in the U.S. District Court for the Southern District of Indiana, claiming FedEx's decision to switch the military passenger business to Northwest Airlines “killed” ATA.

ATA learned in January that it would no longer be part of the carrier team providing...
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