ACA to Reject Offer of US'' Business Partner UA''s New Contract

[USA320Pilot]

Regional Carrier Plans Bargain Airline

Atlantic Coast to Reject Offer of New United Airlines Contract

WASHINGTON (Post) - Atlantic Coast Airlines plans to sever its 14-year bond with United Airlines and become a low-fare airline that could increase competition for price-conscious travelers in the Washington region.

Complete Story: http://www.washingtonpost.com/wp-dyn/artic...-2003Jul26.html

Chip asks: UAL and ACA recently reached an agreement to continue their business relationship until December 31, however, UAL now has a choice. Under bankruptcy court rules, UAL can either accept ACA's existing contract or get out of it with a judge's approval. If UAL does not elect to pay the current fee, the airline must sever the relationship and try to find more IAD feed in addition to TSA. How will this news effect UAL's IAD hub, the new business plan, the POR, and the DIP revenue and cash flow targets after December 31?

In addition, the Washington Post wrote an independent ACA would probably force lower fares and competition with US Airways, particularly in mid-size markets.

Best regards,

Chip

 

[USA320Pilot]

It has come to my attention that US Airways' management intends to talk to Atlantic Coast management about a potential code share relationship, although its unclear if a deal could be worked out. Potential obstalces could be J4J and the amount of money Atlantic Coast would demand, which was a problem for United Airlines.

Best regards,

Chip

 

[scot]

This is being discussed in the UA forum. Please continue discussions [url="http://usaviation.com/idealbb/view.asp?topicID=6356&sessionID=5E3873F6C91B4EB537BFE892F2AF577"]http://usaviation.com/idealbb/view.asp?top...37BFE892F2AF577[/URL]

 

[TBONEJ4J]

Good for ACA! United built them up and made them strong enough to become what will be an independent successful airline, that will quite likely be the final nail in the United Coffin.

Kudos to US Airways and it's pilots for doing the same for Mesa and perhaps Chautauqua. Just think how much the US Airways Pilots Pensions will be worth when Mesa announces it's break, having been built up and made strong by US Airways. The loss of revenue and immediate competition will finally kill off the industry deadweight that is US Airways.

It need not be this way.

Can we stop the outsourcing to contract carriers now?

The company and the pilots are only making the enemy stronger until one day they will eat whatever remains of US Airways.