ATA to get $66M from FedEx in contract case

By Associated Press
Posted Oct. 25, 2010 at 2:23 p.m.

A federal jury says FedEx must pay $66 million to now-defunct ATA Airlines, saying the package delivery company broke a contract that ultimately pushed ATA into bankruptcy.

The jury for the U.S. District Court in Indianapolis awarded ATA $22 million for lost profit in 2008 and $44 million for  2009.

ATA folded in April 2008. It sued FedEx Corp. that June over its decision to end a military charter business, a move the airline says left it financially devastated and forced it to seek bankruptcy protection.

The lawsuit said that the charter flights of military personnel and their families generated more than $400 million in annual revenue and were expected to remain a “cornerstone” of the airline’s future business.

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