ACA Furloughs, PART II

[CRJ puppy]

We'll start a new thread since the old one has turned into a "pi$$ on Mesa" thread.

For those of you who haven't heard, the preliminary furlough announcement at ACA is 52 pilots on 03 April and an additional 34 pilots on 01 May.

Let us all work hard to get our brothers and sisters back ASAP.

For those of you in the pool, if you can forecast what is going to happen at UAL during the next month, year, etc., then you'll be able to figure out your status. In the meantime, stay current, stay active and keep your options open. Just don't sell yourself short and accept a job that pays less than you are worth. Remember, you ARE a professional.

 

[Palerider957]

I can't believe United wouldn't renew the contracts with ACA, you guys are profitable, right?

It sounds as stupid as the Delta pilots on this board who say if Delta ever got into real financial problems they would sell of Comair and ASA.

 

[WhiteCloud]

For those of you who haven't heard, the preliminary furlough announcement at ACA is 52 pilots on 03 April and an additional 34 pilots on 01 May.

Sorry to hear the news Blue Ridgers. Hope you get back to work soon.

 

[jball2]

From an Ex-BlueRidger

I just wanted to say that my thoughts and prayers are with everyone at ACA and especially those who stand to be furloughed. It has now been a year since I left so I probably don't know any of the furloughees but I still consider you brothers and sisters. Hang in there!

Allthough some may disagree, Kerry Skeen is the BEST in the business as far as the regionals go and I would put money on the odds of him having a viable plan that will get everyone back to work ASAP.

Try to remember that a positive attitude goes a long way in times like these. Work on saving some fuel and take care of those less fortunate!

Regards,

Jball

 

[FlyDeltasJets]

I can't believe United wouldn't renew the contracts with ACA, you guys are profitable, right?

It sounds as stupid as the Delta pilots on this board who say if Delta ever got into real financial problems they would sell of Comair and ASA.

Yeah. I guess it sounded just as stupid when Fred Reid said it.

 

[asarjfo]

Delta was quick to pick up 13 ERJ's from "Chakaka" when America West dumped the CMH hub. I would not be surprised to see the united RJ's get the red/blue tail. The 70 seat deliveries are on hold for now while the figure out why the engine is falling apart.

Delta kind of reminds me of the old saying "he who dies with the most toys (RJ's) wins". In this case, the company with the most RJ's before the ecomomy finally turns around and the mainline have some leverage again......WINS!

Good luck, I hope you all have a speedy return to the skies!

 

[chperplt]

Did UAL not renew the contract, or did they postpone its renewal??

Worst case.... Welcome to the US Airways family. No one needs RJs more then they do..

 

[General Lee]

If UAL does liquidate, which is a distinct possibility, ACA will find itself it a crap load of problems. With all of the Chakakas and Mesas out there, they will have to slash costs to compete.

Palerider957,

When we said that we would sell ASA/Comair before we would go bankrupt didn't mean we wouldn't use them as feed. Have you seen the relationship between CAL and CalEx? They started an IPO and made big bucks. We could easily sign a 10 year contract with either of them and keep the money from the sale to pay off some debt. (Or pilot contracts....not) Got it ? Good.

Bye Bye--General Lee

 

[Splert]

Batman,

NEW YORK -- Atlantic Coast Airlines Inc. (NasdaqNM:ACAI - News) hit a 52-week low Tuesday after a judge denied the company's bid to force UAL Corp. (NYSE:UAL - News) to decide whether to reject or take on the burden of adding scores of new jets to regional routes.

The denial -- part of UAL's bankruptcy proceedings Monday -- prolongs uncertainty over the fate of the contract, which calls for Atlantic Coast to add 47 regional jets and retire 30 older turboprop planes by April 2004 at a cost of $940 million.

Atlantic Coast, headquartered in Dulles, Va., serves as a regional carrier for UAL under the United Express brand.

In midday trading on the Nasdaq Stock Market (News - Websites), Atlantic Coast Airlines was down 89 cents, or 13%, to $6.04. Volume was nearly two million shares; average daily volume is 663,176 shares. Earlier in the day, shares plummeted 31% to a 52-week low of $4.78. The previous low of $6.88 was set Feb. 13.

UAL is in the process of putting together a reorganization plan in the wake of its bankruptcy filing last December. The fate of a contract that could potentially require huge capital expenses from a small regional carrier like Atlantic has been a persistent concern for investors. Atlantic wanted the court to force UAL to either assume or reject the deal.

Also in Monday's court proceedings, UAL considered the close of its Dulles hub, resurrecting fears of liquidation by UAL, Blaylock & Partners analyst Raymond Neidl said. With UAL gone, Atlantic Coast would lose a major revenue source. The company derives about 85% of its revenue through its United Express line.

Mr. Neidl said the court decision was a surprise.

"I thought the court wanted to get this clarified," he said.

The main concern for Atlantic Coast is its ability to finance new regional jets, according to Mr. Neidl.

In court testimony Monday, Atlantic Coast Chief Financial Officer Richard J. Surratt said the uncertainty surrounding the UAL contract could make it difficult to obtain outside financing for new regional jets.

Mr. Neidl said the likelihood of UAL liquidating and the closing of its Dulles hub is still remote. If, however, Atlantic Coast does lose its UAL business, it is capable of finding another client.

Mr. Neidl added that the sharp decline in Tuesday's share price gives it a buying opportunity. He said he maintains a "buy" rating on the company.

Raymond James analyst James Parker agreed in his research note that there would be competition among the major carriers to vie for Atlantic Coast's aircraft fleet if UAL files Chapter 7.

Although there would be a temporary disruption in the revenue stream as Atlantic Coast seeks a new partner, Mr. Parker said he believes other major carriers would move quickly to establish a partnership with the company.

Mr. Parker said he maintains a "strong buy" rating on the company, as a result of demand for regional jets far exceeding supply.

A spokesman for Atlantic Coast wasn't immediately available for comment.

________________________________________________

Basically ACA is contracted to spend almost a billion bucks without assurance that the UAL contract will be in place after they order the jets, what the margins will be and if the flying will go to mesa or other low ballers. Sounds like a great deal for good ol' UAL but not so good for ACA. ACA is doing the right thing and it sucks.

Splert...

 

[ACABlueridge]

This is bad news and I feel for the guys that will be out on the street. But lets try to think positive about this.

The last few new hire classes were brought here for airplanes that we are not getting right NOW because of the United situation. If the company knew this earlier they wouldn't even have spent the money to train them. Point is, is that there is a lot of uncertainty right now with United. They could (small chance) let us know what they plan on doing in the near future and we could still exercise some of our RJ options. These people are not on the street yet and week seems like a long time in this industry right now. Besides I hear the the DoJet on the Delta side in understaffed. Who know maybe we can shuffle them to another plane.

Also, don't think that management won't try to use this fulough to try to get a concession from the pilot group.

Again my heart goes out the this group of brothers and sisters. This is recent news and the Union is working out all the details. I have already spoken with a few guys that would be willing to take a voluntary leave.