ACA to go it alone!

[XShuttle]

How is ACA going operate on their own when they can hardly operate as an express carrier for UAL or is that UAL's fault also. ACA has the worst on time and reliability record of any of UAL's express carriers.

Low cost carriers such as SWA and Jet Blue are doing well because they provide a quality product at a resonable price, not just because they are cheap.

I wish you all the best of luck I'd hate to see any more pilots out of work but right now you have a pretty poor product and a very high cost structure that is only going to increase with the addition of a reservation system/agents and advertising costs. Good luck to all of you. You have a tough time ahead of you.

 

[wackford]

Go back. Click on the link i provided. Scan thru till you reach 56:25 and listen till 57:52. Thanks for getting me to spend my time this morning to hold your hand and show you where it is. Ever heard of the term self-fulfilling prophecy? Sounds like you want to get furloughed. Relax, its spelled out in plain english on the webcast. I think you may have misunderstood Tom in the meeting you attended (perhaps that is why everyone clapped and you didnt?).

A “code share” (outsourcing) was not discussed on the webcast. It was used later and said it was something that would have to be worked out with the union. The company would not furlough any more pilots unless we used a “code share” to fly the larger aircraft.
My point about this is that they are considering the option.

 

[RJPilott]

Did he use the term "code-share" or did he use the term "outsourcing"? Code-sharing could mean to fly our larger aircraft, with our pilots, for a different carrier. And i'll repeat what i heard on the webcast, as well as thousands of others including many from Merryl Lynch etc... Straight from Tom, "We will have to honor the contract, our pilots will be flying the larger aircraft"(meaning, no outsourcing). So if he's lying to large brokerage firms, what does that do to his credibility?

 

[~~~^~~~]

Interesting news snippet:

Bombardier stock slides on order concerns
Tuesday July 29, 10:45 am ET


MONTREAL, July 29 (Reuters) - Bombardier(Toronto:BBDb.TO - News) stock fell another 6 percent on Tuesday morning after a key U.S. client said it would likely cancel up to 34 aircraft orders, or 10 percent of Bombardier's regional aircraft order backlog.

Bombardier class B shares were down 27 Canadian cents at C$4.66 at mid morning on the Toronto Stock Exchange (News - Websites), where they were the most heavily traded issue. The stock has lost 11 percent in the last two days.

Atlantic Coast Airlines (NasdaqNM:ACAI - News) said on Monday it expects to cancel up to 34 orders for 50-seat regional jets in favor of 15 to 25 larger aircraft from Boeing Co.(NYSE:BA - News) or Airbus.

A Bombardier spokesman said Atlantic Coast had not officially informed the company of the order cancellation.

Atlantic Coast made the announcement as it unveiled plans to transform itself into a low-cost airline after failing to reach an agreement over its regional feeder contract with United Airlines(OTC BB:UALAQ.OB - News).

 

[upndsky]

RDU was a key hub during the dot-com boom and Midway made lots of money selling high-$ business and walk-up tickets to all those start-ups. When the bubble burst and all the paper millionaires went bust, so did Midway's business. They tried to reinvent themselves as a LCC but failed. Now they fly feed for US and are expected to get out of banckruptcy in the next few months.

 

[AeroDMB]

JetBlue = leather seats, leg room, and satellite TV

Southwest = LUV concept, sit where you want, etc.

AirTran = 717's? Not sure what else.

What do you think "Project Independence" (the new ACA startup)will use as a distinct product?

 

[Always deferred]

Well for a small start I know that IAD is prime real estate for a LCC. BWI is a nightmare commute to use SWA for anyone who lives West of BWI (Beltway traffic). For example, the execs at a company in MD drive the 50 miles to BWI just to use SWA. The drive to IAD is soo much easier and Northern VA is in such a growth mode right now that it really is a good place to start. Just my $.02.

 

[furlough-boy]

Another thing to consider is that ACA is going to jump into the market with almost 100 aircraft. All the other LCC have started with a small number of aircraft and grown as the pax recognize who they are and what they offer. If ACA is also planning on increasing utilization (fly more hours a day) they're going to have to pull in more pax then they are getting now throught the United Network. All on an airline that no one has ever heard of. Sounds tough.

 

[General Lee]

ACA managment will tell the pilots that they will have to accept J31 wages for the 737 or they will all be furloughed. ACA will pull the next "Skywest trick"-----flying bigger planes for smaller plane wages. They will state that they need extra capital to buy all of those mainline planes-----and they will threaten to furlough big time.

Bye Bye--General Lee

 

[treetopflyer]

Only time will tell ACA's destiny.

Right now I'm glad not to be in the twilight of my airline career (50+ years old) if we fail because that would be my end of it if ACA fails.

We've all got our concerns with the 328s, but the DAL issue seems to be a nonissue according to our MGT webcast. I'm keenly aware of our resident DAL scope-meisters, but our CEO is confident and DAL is amicable with the "modified" arrangement. Also, we're not an upstart airline in any sense, many pax know us as Atlantic Coast. There is name, but albeit, not "brand" recogition. Furthermore, we've got 200 mil in the bank, good credit and a "ground breaking" new method of utilizing RJs. Just because this hasn't been attempted before doesn't mean it won't work, and vice versa. This time next year we'll have a narrow-body that'll be fed by our RJ fleet, sounds like what AirTran is doing with AWAC in ATL now and what Jet Blue is seeking to do--in reverse.

I know that initially our 14 year veteran pilots will not be paid LUV pay, or industry leading pay, but hopefully industry average pay. This will cause a rift among our pilot ranks - junior vs. senior - but in time it'll even out. We opened the can-o-worms with the POS TA and our MGT has alluded to and plans to exploit that. Hind sight is 20/20...

This is good for the industry because it opens the door up for future uses of RJs (there's nothing regional about most of the "regional" carriers today, what a anachronistict nomenclature) which will be around for a long time. And maybe a future business model will come of it and allow more airlines to thrive. We all know how the major airline pilots feel about us bottom feeders and new guys to the industry (some of them forgot their roots). The current trunk carriers may go the way of the dinosaurs--if you can't improvise to overcome or adapt you die! So may ACA...

Tailwinds...