United May Lose ACA Service

[Cosmo]

Today''s edition of Crain''s Chicago Business contains an article reporting that United is seeking an emergency court order from the bankruptcy judge to prevent Atlantic Coast from withdrawing from its United Express contract as of this Saturday, May 24. ACA''s attempted contract withdrawal apparently stems from United''s refusal a few months ago to commit to continuing the relationship with ACA, which impacted ACA''s ability to get financing for new CRJs so its delivery schedule would not be interrupted.

If ACA were to bail out of the contract, it would greatly damage United''s ORD operation and, in all likelihood, destroy the carrier''s IAD hub. But this apparently is not an immediate concern since the judge granted United''s request for a temporary restraining order this afternoon.

Here''s the Crain''s article.

 

[BillLumbergh]

UAL Seeks Injunction Against Atlantic Coast On Contract

 

[Cosmo]

ACA issued a statement this morning outlining its position on recent events in its discussions with United. The two most interesting items noted were that (1) ACA was simply protecting its rights with regard to the setting of payment levels by United for services provided by ACA in 2003 and ACA thus did not intend at this time to actually stop flying its United Express flights, and (2) ACA has reached a tentative agreement with its ALPA-represented pilots for a pay reduction (amount undisclosed) to be effective when (or perhaps if) ACA and United implement a new United Express agreement.

Here''s the press release.