Atlantic Coast Orders Jets For New Low-Cost Airline
November 2004 Launch Is Planned
By Keith L. Alexander
Washington Post Staff Writer
Wednesday, November 19, 2003; Page E03
Dulles-based Atlantic Coast Airlines Holdings Inc. signed an agreement to lease or buy 25 new Airbus jets that will become part of the carrier's new low-cost operation, the airline said yesterday.
Atlantic Coast has ordered 20 A-319 jets, each of which has 132 seats, and five A-320 jets with 156 seats for use on longer flights. The aircraft are among the more popular planes in use and are part of the fleets of JetBlue, United, Northwest and US Airways, said Airbus spokesman Clay McConnell. The planes are valued at $1.4 billion. Atlantic Coast would not say how much it will pay to lease 10 and buy 15 of the jets.
Atlantic Coast is scheduled to announce details of its low-cost operation, including the name of the new airline, today at its corporate headquarters.
Rick DeLisi, Atlantic Coast spokesman, said the planes would be configured for coach only. The airline expects to begin taking delivery in September 2004 and to have the planes in operation by November.
Atlantic Coast is fighting a takeover attempt by Phoenix-based Mesa Air Group Inc. In October, Mesa launched a hostile $512 million, all-stock offer for Atlantic Coast and has asked Atlantic shareholders to replace the current board with Mesa's slate of directors, who would approve the deal.
In a letter to Atlantic Coast directors recently, Jonathan G. Ornstein, Mesa's chief executive, requested that Atlantic Coast avoid making large aircraft orders until the Mesa deal was finalized.
DeLisi said the jet order "follows exactly the plan that we laid out back in July and it's timed to coincide with the expected rollout of the new airline."
After failing to reach a new contract with United Airlines after months of negotiations, Atlantic Coast said this summer that it wanted to terminate its existing agreement with United and operate alone as a low-cost airline. Atlantic is United's largest regional operator of United Express flights.
