Ual Scraps Deal With Mesa Air

[Cosmo]

It looks like United is finally giving up any hope that ACA will continue as a United Express carrier beyond the bankruptcy proceedings. United just issued this press release ending its non-binding agreement with Mesa for that carrier to operate ACA's flights at IAD if it successfully acquired ACA. United says it is still committed to the IAD hub (indeed, it's beginning new nonstop service to SJO and CUN in February) and will use its other United Express operators to serve the current ACA cities feeding its IAD hub. United also says it is having good discussions with the MWAA (the operator of IAD) regarding its facility needs, given that ACA owns the current United Express gates in Concourse A.

I assume that we'll get a better idea of United's plans to replace ACA's flights sometime early next year. And I wonder if some current RJ markets at IAD will get upgraded to United mainline service, presumably with B737s.

 

[Chinook]

Hello,
My guess is UAL has an interim plan using some 737's and regional feed from a combination of Mesa, Air Wisc., and perhaps Skywest, and a longer term plan that would phase out some of the 737 lift as more regional feed comes on line. They state they have a plan for baggage handling and passenger logistics at Dulles, and the plan is complete.
Remember the Comair strike at Delta's CVG hub? Pundits predicted doom for Delta, but few probably even remember it now. In the big picture, I think this ACA/Dulles fiasco will soon fade into history. Also, it seems the DOJ probe into UAL/Mesa/ACA is fading from the radar as well. All in all, I think things are starting to fall on the correct side of the fence for UAL. Happy Holidays to everybody. I grew up in Piedmont country, and remember watching the YS-11's taxi up to the old terminal at GSO, so I have a soft spot for USAir. Hang in there.
Chinook

 

[BoeingBoy]

Thanks Chinook,

I grew up in Piedmont country too - still live here. I remember the Martins coming into Pinehurst seasonally. I also remember riding on United from Wilmington, DE, to RDU when I was in the military @ Dover AFB. Someone can correct me but seems like United served all the states back then (or at least the lower 48).

Best wishes to you folks, hope everything works out. You deserve it.

Merry Christmas,

Jim

 

[Bear96]

You heard it here first...

Mid-Atlantic Air (the new U wholly-owned that is supposed to start up next year out of PIT) will become the UAX feeder at IAD.

Once PIT gets sick of U's games, MDA will be a feeder airline looking for a new hub. Meanwhile at IAD you have a mainline carrier and an airport looking for regional feed.

Makes sense to me.

 

[Bear96]

Someone can correct me but seems like United served all the states back then (or at least the lower 48).

UA was indeed "First to all Fifty" (according to the advertising slogan at the time) and served all fifty states for a while. I want to say it was early 1980s? Something like that. My guess at the time was that UA flew to Wilmington, DE just to validate the slogan!

 

[linemech]

UAL Scraps Service Plan with Mesa Air




Monday December 22, 7:26 PM EST

By Jeffrey Goldfarb

NEW YORK (Reuters) - United Airlines' parent company UAL Corp. (UALAQ) said on Monday it scrapped a regional service deal tied to Mesa Air Group Inc's (MESA) proposed acquisition of Atlantic Coast Airlines Holdings Inc. (ACAI) because of possible legal delays and impediments.

United said it remains committed to its hub at Washington Dulles International Airport, but because of the uncertainty surrounding the Mesa-Atlantic situation, it will focus on other alternatives and end its nonbinding memorandum of understanding with Mesa.

Chicago-based UAL said it notified Mesa of the decision on Monday. Under the deal, Mesa would have taken over certain United Express East Coast routes out of Dulles, located in Northern Virginia, that are now operated by Atlantic Coast.



A Mesa spokesman declined to comment as did a spokesman for Atlantic Coast. Senior Mesa Air officials could not immediately be reached.

"ACA has made clear that it no longer wants to serve as United's contract United Express carrier at Dulles," UAL said in a statement.

"United has developed a comprehensive plan to ensure that a full schedule of flights at competitive fares will continue to be available to United's customers at Dulles," the company added.

The regional route agreement between Mesa and UAL, which has reorganized under bankruptcy protection this year, was contingent on the Mesa-Atlantic deal being completed. That deal is now being scrutinized by the U.S. Justice Department and District of Columbia antitrust regulators.

In temporarily blocking the takeover bid last week, a federal judge said Mesa's deal with UAL could violate U.S. antitrust laws because it potentially restrains Atlantic Air's ability to launch a low-cost competitor to United.

UAL secured $2 billion of exit financing loans from two banks last week, calling it a major step toward its targeted emergence from bankruptcy protection.

Mesa has offered 0.9 of a share of its stock for each Atlantic Coast share, valuing Atlantic Coast at $11.66 a share. Atlantic shares closed up 31 cents at $9.20 on the Nasdaq on Monday. The gap between the offer price and where the shares are trading signals investor doubts about the deal closing.

Atlantic Coast has repeatedly rejected Mesa's offer.

UAL shares gained 4 cents to $1.54 on the over-the-counter Bulletin Board and Mesa's shares gained 6 cents to $12.96 on the Nasdaq prior to United's announcement.


©2003 Reuters Limited.

 

[usfliboi]

BOB Hes not far off the mark my friend ! But ill let action speak louder than words Just sit back and watch!

 

[Fly]

Your right Fliboi, unfortunately I think its going to be that US becomes Uniteds feeder.

 

[passed_over]

Maybe just maybe Tilton finally got the real MESA picture. Surely there performance as a United feeder is as abysmal as it is at Airways.

 

[Light Years]

Hey Fly,

For someone who complains so much about Chip (do you ever work?) your ramblings have become pretty tiresome too.

MidAtlantic as a United Express carrier defies any sort of logic whatsover. I'm not going to go into the reasons again as I already have in an earlier post.

Yes, lets base our business plan on this particular type of aircraft that works well for US... oh, never mind! Lets just give it to United! After all we are codeshare partners. Let our own airline fall by the wayside, lets pour our time, money, employees, and resources into our codeshare partners competing hub for no reason. We can still operate 737s and Dash 8s into our own hubs, but compete with ourselves (what do you mean its not legal? who cares!) with 70 seat aircraft on routes formerly served for UA by props and RJs! Doubling capacity on those routes is fine because a UAL F/A says so! Hope the unions and the DOJ dont have a problem with a division of an airline pretending to be an Express carrier for someone else! Maybe as a return gift UAL will give us TED. They can base it out of BWI and call it WAY instead. This is great! We should ask flight attendants for advice more often. While we are at it, does Delta need anymore lift to Europe? I KNOW, lets paint the 330s as Delta and fly them out of Atlanta for them instead! Who cares about our own competing ops, its the Christmas season and we musn't be selfish. Scope clause scmope clause!


<_< :blink: :unsure:

You guys are just as bad as Chip, posting utter nonsense that has no basis in logic whatsoever.

 

[BoeingBoy]

Bear96,

Thanks for the info. With PHL, BWI, and DCA relatively close I'm sure you're right on target when saying that the Wilmington service was just for the "bragging rights". When I took that particular flight, it was 1972 I believe.

Jim

 

[Fly]

Light Years Posted on Dec 22 2003, 10:54 PM

For someone who complains so much about Chip (do you ever work?) your ramblings have become pretty tiresome too.

Sure I work.....thank goodness for wireless cards

 

[BoeingBoy]

The UAL - ACA split will mean that Liberty Air will be able to start up, probably initially with just the RJ's they have since I don't think the first of the Buses they've ordered show up till Sept 04 or so. Who knows if they'll be successful in transforming from a feeder to an independent LCC?

For U it's bad news - if you haven't read it see the article I posted under the topic "Another Thorn In U's Side", go take a look. What we don't need is another LCC beginning operations in our back yard - potentially about the same time as LUV starts PHL service.

Jim

 

[N628AU]

I still think Independence Air (nee ACA) is lining themselves up for disaster. Starting a LCC with only RJs until they can get some larger aircraft? Then we are going to run around with two different fleet types, one with a notoriously high CASM? I think I have seen this movie before, it was called Midway Airlines.

 

[BoeingBoy]

N628AU,

Frankly, I agree. However, the pressure on our yields will increase for whatever time they last. And traditionally, an airline taking its last gasps slashes fares to keep the cash flow coming in.

Jim