Jury hits FedEx with US$65.9m damages

A US jury has awarded now-defunct airline ATA US$65.9 million in damages for lost profits.

The breach of contract trial - with Federal Express the defendant - alleged FedEx breached its contract with ATA to provide passenger and freight service to the US military.

FedEx was one of three firms that co-ordinated the fleet of civilian aircraft providing services to the military.

In 2008, the second year of a three-year deal with ATA, FedEx abruptly dumped ATA.

The airline subsequently filed for bankruptcy and went out of business.

After the case, ATA's legal team said any judgment ATA recovers from FedEx won't revive ATA, but will be distributed to creditors, including former ATA pilots.

 

Jury hits FedEx with US$65.9m damages

A US jury has awarded now-defunct airline ATA US$65.9 million in damages for lost profits.

The breach of contract trial - with Federal Express the defendant - alleged FedEx breached its contract with ATA to provide passenger and freight service to the US military.

FedEx was one of three firms that co-ordinated the fleet of civilian aircraft providing services to the military.

In 2008, the second year of a three-year deal with ATA, FedEx abruptly dumped ATA.

The airline subsequently filed for bankruptcy and went out of business.

After the case, ATA's legal team said any judgment ATA recovers from FedEx won't revive ATA, but will be distributed to creditors, including former ATA pilots.