NEW YORK (CNN/Money) -
Southwest Airlines could essentially take control of bankrupt airline ATA Airlines under discussions held Monday, according to a published report.
The Indianapolis Star reported that Indianapolis-based ATA and its creditors held talks Monday about a proposal in which Southwest (Research) would oust ATA (Research) senior executives, inject $47 million in cash into ATA and take a 35 percent stake in the carrier.
The plan is part of a previously-announced $100 million bid that Southwest made for six gates that ATA used at Chicago's Midway Airport.
Southwest is by far the nation's most profitable airline. It is competing with Orlando-based discount carrier AirTran Airways for the Midway gates. The decision on who wins is up to the bankruptcy court. The Star said a decision is due Thursday.
AirTran and ATA reached an agreement in November to sell all 14 gates at Midway for about $90 million. A third airline, America West (Research), dropped out of the bidding last week.
The Star said it viewed a document outlining the proposal Monday. It reported the document is the first indication that Southwest is attempting to win the backing of major ATA creditors for its bid.
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