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ACA Its Airbus
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j41driver
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Here's the Press Release....
Atlantic Coast Airlines Announces Order for 25 Airbus Aircraft
A319s and A320s To Be Deployed At Washington Dulles,
Providing Company’s Low-Fare Airline with Transcontinental Capability
Dulles, VA, (November 18, 2003) - Atlantic Coast Airlines, the Dulles, VA-based carrier (ACA) (NASDAQ/NM: ACAI) announced it has entered into agreements to acquire 25 Airbus A320-family aircraft, with options for additional aircraft. These efficient, passenger-friendly aircraft will form the backbone of the fleet for the company’s low-fare airline. The first of these aircraft will arrive in September 2004 and will be ready for revenue service as early as November 2004.
The company has entered into a binding memorandum of understanding with Airbus for a firm order of ten new A319 aircraft configured with 132 seats, and five new A320 aircraft configured with 156 seats, including full conversion rights. It has also entered into leasing commitments from operating lessors for ten additional A319 aircraft. Each aircraft will feature IAE V2500-A5 engines. The aircraft will be equipped in a single-class configuration, and will offer passengers a comfortable 33 inches of legroom between most rows.
Atlantic Coast Airlines Chairman and Chief Executive Officer Kerry Skeen said, “Today’s announcement represents a major step forward in our strategy to transform the company into one of the leading low-fare carriers in the industry. The addition of the Airbus aircraft to our fleet will allow us to fly coast-to-coast from our hub at Washington Dulles to serve major destinations beyond the reach of the CRJ-200. This is a key component in our plan to offer consumers in the Washington, DC area and across the country an airline with low, simple fares, excellent service and convenient schedules featuring frequent departures and flexible ticketing rules.”
“We are pleased with the favorable economics and business terms we have achieved in this deal. By placing the order at this time we are able to take advantage of these favorable terms as well as delivery positions that are currently available, which are critical to the implementation of our low-fare strategy.” He added, “Our Board’s decision to go with Airbus aircraft was the result of an intense bidding process. The company received competitive proposals from airframe, engine, and equipment suppliers, all of whom were vying to participate in this order following their extensive review of our business plan. We believe that this agreement clearly demonstrates the confidence that Airbus and our new lessors have in our new business plan.”
Atlantic Coast Airlines is uniquely positioned to execute its strategy to establish an independent low-fare airline. The Washington, DC metropolitan area is the fifth largest air travel market in the U.S. with more than 40 million local passengers per year. The company’s existing infrastructure will provide immediate critical mass at Dulles, and the company believes that its cost structure will allow it to operate its Airbus aircraft at competitive costs relative to other low-fare carriers. The company’s pilots have voiced their clear support for the company’s business strategy by overwhelmingly approving competitive pay scales and work rules for the operation of the these aircraft as part of their recently announced revised contract.
With 44 gates, 87 regional jets and a fleet that will include at least 25 Airbus jets, ACA will operate more than 325 daily departures from Dulles, offering high-frequency service to a large number of markets for both local and connecting passengers. The company’s high-utilization operation and low distribution costs will allow it to offer walk-up fares up to 70% lower than those offered today for service to and from Washington Dulles.
The company intends to implement its new independent low-cost carrier strategy as soon as its existing contract with United Airlines has been terminated. The name and branding identity for the low-fare airline will be revealed at a ceremony scheduled for Wednesday, November 19th at 2:00pm, to be held at ACA’s state-of-the-art Washington Dulles maintenance facility.
ACA currently operates as United Express and Delta Connection in the Eastern and Midwestern United States as well as Canada. On July 28, 2003, ACA announced plans to establish a new, independent low-fare airline to be based at Washington Dulles International Airport. The company currently has a fleet of 148 aircraft—including a total of 120 regional jets—and offers over 840 daily departures, serving 84 destinations. ACA employs approximately 4,600 aviation professionals.
The common stock of parent company Atlantic Coast Airlines Holdings, Inc. is traded on the Nasdaq National Market under the symbol ACAI. For more information about ACA, visit our website at www.atlanticcoast.com.
Statements in this press release and by company executives regarding its implementation of new business strategies and its relationship with United Airlines, Inc., regarding the unsolicited acquisition proposal by Mesa Air Group, Inc. and other matters, as well as regarding operations, earnings, revenues and costs, represent forward-looking information. A number of risks and uncertainties exist which could cause actual results to differ materially from these projected results. Such risks and uncertainties include, among others: whether Mesa Air Group, Inc. succeeds in its efforts to take control of the company through its proposed consent solicitation and to acquire all of the outstanding shares of the company’s common stock; the costs of reviewing and responding to the unsolicited Mesa proposal, and other impacts of the proposal on the company’s operations; United’s option under bankruptcy rules to assume or reject the existing United Express Agreement; the timing of any disengagement by the company as a United Express carrier under the United Express Agreement or pursuant to bankruptcy court proceedings and impact on the company’s ability to operate an independent airline; the ability to successfully implement a transition from United Express service; the ability to effectively implement its low-fare business strategy utilizing a mix of narrowbody aircraft and regional jets; the ability to acquire and obtain financing for the narrowbody aircraft; the ability to compete effectively as a low-cost carrier, including passenger response to its new service, and the response of United or other competitors with respect to service levels and fares in markets to be operated by the company; the availability of additional or alternative business opportunities for the company’s operations; the effects of United’s bankruptcy proceedings; the continued financial health of Delta Air Lines, Inc., and the ability and willingness of Delta to continue to deploy the company’s aircraft and to utilize and pay for scheduled service at agreed upon rates; availability and cost of product support for the company’s 328JET aircraft; unexpected costs arising from the insolvency of Fairchild Dornier; general economic and industry conditions; additional acts of war or terrorism; and risks and uncertainties arising from the events of September 11, any of which may impact the company, its aircraft manufacturers and its other suppliers in ways that the company is not currently able to predict. Certain of these and other risk factors are more fully disclosed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended December 31, 2002 and in its Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2003. These statements are made as of November 18, 2003 and ACA undertakes no obligation to update any such forward-looking information, including as a result of any new information, future events, changed expectations or otherwise.
# # #
Atlantic Coast Airlines Announces Order for 25 Airbus Aircraft
A319s and A320s To Be Deployed At Washington Dulles,
Providing Company’s Low-Fare Airline with Transcontinental Capability
Dulles, VA, (November 18, 2003) - Atlantic Coast Airlines, the Dulles, VA-based carrier (ACA) (NASDAQ/NM: ACAI) announced it has entered into agreements to acquire 25 Airbus A320-family aircraft, with options for additional aircraft. These efficient, passenger-friendly aircraft will form the backbone of the fleet for the company’s low-fare airline. The first of these aircraft will arrive in September 2004 and will be ready for revenue service as early as November 2004.
The company has entered into a binding memorandum of understanding with Airbus for a firm order of ten new A319 aircraft configured with 132 seats, and five new A320 aircraft configured with 156 seats, including full conversion rights. It has also entered into leasing commitments from operating lessors for ten additional A319 aircraft. Each aircraft will feature IAE V2500-A5 engines. The aircraft will be equipped in a single-class configuration, and will offer passengers a comfortable 33 inches of legroom between most rows.
Atlantic Coast Airlines Chairman and Chief Executive Officer Kerry Skeen said, “Today’s announcement represents a major step forward in our strategy to transform the company into one of the leading low-fare carriers in the industry. The addition of the Airbus aircraft to our fleet will allow us to fly coast-to-coast from our hub at Washington Dulles to serve major destinations beyond the reach of the CRJ-200. This is a key component in our plan to offer consumers in the Washington, DC area and across the country an airline with low, simple fares, excellent service and convenient schedules featuring frequent departures and flexible ticketing rules.”
“We are pleased with the favorable economics and business terms we have achieved in this deal. By placing the order at this time we are able to take advantage of these favorable terms as well as delivery positions that are currently available, which are critical to the implementation of our low-fare strategy.” He added, “Our Board’s decision to go with Airbus aircraft was the result of an intense bidding process. The company received competitive proposals from airframe, engine, and equipment suppliers, all of whom were vying to participate in this order following their extensive review of our business plan. We believe that this agreement clearly demonstrates the confidence that Airbus and our new lessors have in our new business plan.”
Atlantic Coast Airlines is uniquely positioned to execute its strategy to establish an independent low-fare airline. The Washington, DC metropolitan area is the fifth largest air travel market in the U.S. with more than 40 million local passengers per year. The company’s existing infrastructure will provide immediate critical mass at Dulles, and the company believes that its cost structure will allow it to operate its Airbus aircraft at competitive costs relative to other low-fare carriers. The company’s pilots have voiced their clear support for the company’s business strategy by overwhelmingly approving competitive pay scales and work rules for the operation of the these aircraft as part of their recently announced revised contract.
With 44 gates, 87 regional jets and a fleet that will include at least 25 Airbus jets, ACA will operate more than 325 daily departures from Dulles, offering high-frequency service to a large number of markets for both local and connecting passengers. The company’s high-utilization operation and low distribution costs will allow it to offer walk-up fares up to 70% lower than those offered today for service to and from Washington Dulles.
The company intends to implement its new independent low-cost carrier strategy as soon as its existing contract with United Airlines has been terminated. The name and branding identity for the low-fare airline will be revealed at a ceremony scheduled for Wednesday, November 19th at 2:00pm, to be held at ACA’s state-of-the-art Washington Dulles maintenance facility.
ACA currently operates as United Express and Delta Connection in the Eastern and Midwestern United States as well as Canada. On July 28, 2003, ACA announced plans to establish a new, independent low-fare airline to be based at Washington Dulles International Airport. The company currently has a fleet of 148 aircraft—including a total of 120 regional jets—and offers over 840 daily departures, serving 84 destinations. ACA employs approximately 4,600 aviation professionals.
The common stock of parent company Atlantic Coast Airlines Holdings, Inc. is traded on the Nasdaq National Market under the symbol ACAI. For more information about ACA, visit our website at www.atlanticcoast.com.
Statements in this press release and by company executives regarding its implementation of new business strategies and its relationship with United Airlines, Inc., regarding the unsolicited acquisition proposal by Mesa Air Group, Inc. and other matters, as well as regarding operations, earnings, revenues and costs, represent forward-looking information. A number of risks and uncertainties exist which could cause actual results to differ materially from these projected results. Such risks and uncertainties include, among others: whether Mesa Air Group, Inc. succeeds in its efforts to take control of the company through its proposed consent solicitation and to acquire all of the outstanding shares of the company’s common stock; the costs of reviewing and responding to the unsolicited Mesa proposal, and other impacts of the proposal on the company’s operations; United’s option under bankruptcy rules to assume or reject the existing United Express Agreement; the timing of any disengagement by the company as a United Express carrier under the United Express Agreement or pursuant to bankruptcy court proceedings and impact on the company’s ability to operate an independent airline; the ability to successfully implement a transition from United Express service; the ability to effectively implement its low-fare business strategy utilizing a mix of narrowbody aircraft and regional jets; the ability to acquire and obtain financing for the narrowbody aircraft; the ability to compete effectively as a low-cost carrier, including passenger response to its new service, and the response of United or other competitors with respect to service levels and fares in markets to be operated by the company; the availability of additional or alternative business opportunities for the company’s operations; the effects of United’s bankruptcy proceedings; the continued financial health of Delta Air Lines, Inc., and the ability and willingness of Delta to continue to deploy the company’s aircraft and to utilize and pay for scheduled service at agreed upon rates; availability and cost of product support for the company’s 328JET aircraft; unexpected costs arising from the insolvency of Fairchild Dornier; general economic and industry conditions; additional acts of war or terrorism; and risks and uncertainties arising from the events of September 11, any of which may impact the company, its aircraft manufacturers and its other suppliers in ways that the company is not currently able to predict. Certain of these and other risk factors are more fully disclosed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended December 31, 2002 and in its Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2003. These statements are made as of November 18, 2003 and ACA undertakes no obligation to update any such forward-looking information, including as a result of any new information, future events, changed expectations or otherwise.
# # #
Great news! I am sure the Airbuses are the right choice for trans-con flights - definitely more comfortable for the crew with the side-sticks... I wish they could bump up the start date a bit...
Watch out USAirways and UAL, things are getting tight on the East Coast with the new ACA, AirTran, Southwest, Jet Blue, Song, Project Roam (Pittsburg) and maybe Virgin USA tightening the noose...
Watch out USAirways and UAL, things are getting tight on the East Coast with the new ACA, AirTran, Southwest, Jet Blue, Song, Project Roam (Pittsburg) and maybe Virgin USA tightening the noose...
GogglesPisano
Pawn, in game of life
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GogglesPisano
Pawn, in game of life
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Re: ACA
Where have you been? ACA pilots reached a TA on narrowbody rates and work-rule changes two weeks ago.
Our NB rates are in the middle. Slightly below JetBlue and Air Tran, well below SWA and ATA, above Spirit, Frontier and AWA.
Our CRJ rates are still second only to Comair.
Pretty good profit-sharing as well.
yaks said:
Where have you been? ACA pilots reached a TA on narrowbody rates and work-rule changes two weeks ago.
Our NB rates are in the middle. Slightly below JetBlue and Air Tran, well below SWA and ATA, above Spirit, Frontier and AWA.
Our CRJ rates are still second only to Comair.
Pretty good profit-sharing as well.
meanstreak
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Sniper@YourFeet
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You're not in Kansas anymore, Toto
"In the middle"? Aren't there some other airlines who fly NB's (say American, Aloha, Alaska, Continental, Delta, Northwest, Hawaiian, United, US Air)? How does the ACA contract compare to them?
Anyone notice that this ACA thread is in the 'majors' forum?
GogglesPisano said:
"In the middle"? Aren't there some other airlines who fly NB's (say American, Aloha, Alaska, Continental, Delta, Northwest, Hawaiian, United, US Air)? How does the ACA contract compare to them?
Anyone notice that this ACA thread is in the 'majors' forum?
holdon said:
The regional pilots see this as their boat rising. The major pilots see this as their boat sinking. Everyone step back for a moment and look at this issue as a pilot. Not a major or regional pilot.
Now compile the payscales, work rules, and benefits of those pilots who are currently flying those flights vs. what ACA will offer.
Another POS company dragging this profession down the toilet.
First it was JetBlue undercutting the majors. Now it's ACA undercutting JetBlue.
This race to the bottom is going to put downward pressure on pilot salaries for several years.
Re: You're not in Kansas anymore, Toto
It is in the middle of the LCC carriers. Actually, I would be interested to see how everybody's pay stacked up concerning the 737/A320 type of aircraft.
As for Andy, why is ACA a "POS" company? What causes you to make that observation? You might say our contract is in the middle of those carriers making money over the last few years and probably below those of the carriers losing money/bankrupt over the last few years...... Bankrupt UAL offered us an absolutely unacceptable contract and said take it or else - ACA replied with the immortal words of that great philosopher Eric Cartman, "Screw you guys, I'm going home."
And for USNFDX, would you prefer that ACA capitulate to UAL and take a MESA level contract (the F.O.'s being eligible for food stamps and such glorious contract rules as not being paid for mx or wx cancellations.)? Our RJ rates are still well paid and the narrow body rates are respectable (especially in light of this being our first contract with them) in regards to our competition.
Sniper@YourFeet said:
It is in the middle of the LCC carriers. Actually, I would be interested to see how everybody's pay stacked up concerning the 737/A320 type of aircraft.
As for Andy, why is ACA a "POS" company? What causes you to make that observation? You might say our contract is in the middle of those carriers making money over the last few years and probably below those of the carriers losing money/bankrupt over the last few years...... Bankrupt UAL offered us an absolutely unacceptable contract and said take it or else - ACA replied with the immortal words of that great philosopher Eric Cartman, "Screw you guys, I'm going home."
And for USNFDX, would you prefer that ACA capitulate to UAL and take a MESA level contract (the F.O.'s being eligible for food stamps and such glorious contract rules as not being paid for mx or wx cancellations.)? Our RJ rates are still well paid and the narrow body rates are respectable (especially in light of this being our first contract with them) in regards to our competition.
Last edited:
jetblue320
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Andy said:
What do you mean "first it was jetBlue"? Where have you been for the last 25 years? Did you just start flying? Ever heard of Southwest, People Express, America West? Shall I go on with the list of many since Deregulation in 1978?
It gets really old hearing that jetBlue (et al) are the ones dragging this industry down. If you ask me, it's being brought down by a lot of pilots who think the world owes them a living. It's always someone else's fault, right? If you are working (as opposed to being on furlough) you should count your blessings.
Why don't you ask any one of the 733 pilots at jetBlue (or any of the thousand or so that will be hired) if they think that jetblue is driving this professionion down the toilet. I am positive you will get an answer that is contrary to the few on this forum that think we are "lowering the bar". Without going into detail about our pay scales, suffice it to say that they are just (and I mean just barely) below that of Southwest. As far as our working conditions and other QOL, I'd stack it up against any, repeat any, US air carrier.
So there!
Have a good one
jetblue320 said:Why don't you ask any one of the 733 pilots at jetBlue (or any of the thousand or so that will be hired) if they think that jetblue is driving this professionion down the toilet. .....As far as our working conditions and other QOL, I'd stack it up against any, repeat any, US air carrier.
So there!
Have a good one
JetBlue320, and all,
I will vouch for what you have said. Having left a "major" voluntarily for a better QOL and job satisfaction at JetBlue, I totally agree. So far I have not been disappointed with my decision yet. To each his/her own, but I consider JetBlue a step UP, not a step down.
As for ACA, I haven't a clue.
Skirt
RichardFitzwell
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bigboeings
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too bad
Too bad they chose the Airbus. Ask any mechanic who works on them and they will tell you they are junk, a throwaway plane. Boeing builds a much better product for the long term. This seems to be the attitude today in management, save a lot of money up front rather than look down the road.
Too bad they chose the Airbus. Ask any mechanic who works on them and they will tell you they are junk, a throwaway plane. Boeing builds a much better product for the long term. This seems to be the attitude today in management, save a lot of money up front rather than look down the road.
texanpilot
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Blueridgeflyer
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bigboeings,
I think the defining moment was each manufacturer's delivery schedule. Airbus could promise a Sept '04 arrival, while Boeing was tied up with a ton of 738 rollouts. Ironic though, because one would think the closure of the 757 line might help expedite the others.
Blueridgeflyer
I think the defining moment was each manufacturer's delivery schedule. Airbus could promise a Sept '04 arrival, while Boeing was tied up with a ton of 738 rollouts. Ironic though, because one would think the closure of the 757 line might help expedite the others.
Blueridgeflyer
FlyBoeingJets
YES, that's NICE
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Lowecur, if you're in this thread, why didn't ACA order 100 seat jets??
I've been looking for the order......
Industry in the crapper?? I think we are looking at how aviation operates in America. ACAs plan is not revolutionary.
Steps--
1) Airline is founded, grows, wages go up and everyone is happy
2) Growth slows or stops but management and pilots continue to want wage growth
3) Airline in trouble and senior management and pilots try to run away with as much cash as possible
All carriers with big or increasing debt with small profits or losses should be looking over their shoulder. A lower debt or cost advantaged competitor will arrive soon.
I've been looking for the order......
Industry in the crapper?? I think we are looking at how aviation operates in America. ACAs plan is not revolutionary.
Steps--
1) Airline is founded, grows, wages go up and everyone is happy
2) Growth slows or stops but management and pilots continue to want wage growth
3) Airline in trouble and senior management and pilots try to run away with as much cash as possible
All carriers with big or increasing debt with small profits or losses should be looking over their shoulder. A lower debt or cost advantaged competitor will arrive soon.
FlyBoeingJets
YES, that's NICE
- Joined
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- Posts
- 1,802
Lets look at history here.
Can one of the more senior Delta guys tell us what Delta's wages were compared to Eastern and Pan Am when Delta was growing in the 80's?? Delta offered a great product, but they also had a cost advantage (if memory serves me).
How did Delta get those European routes? I'm pretty sure they got them when Delta was awash in cash, with low debt, and the airline that sold them was drowning in debt.
Can one of the more senior Delta guys tell us what Delta's wages were compared to Eastern and Pan Am when Delta was growing in the 80's?? Delta offered a great product, but they also had a cost advantage (if memory serves me).
How did Delta get those European routes? I'm pretty sure they got them when Delta was awash in cash, with low debt, and the airline that sold them was drowning in debt.
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