Buckatuna
Active member
- Joined
- Jul 9, 2002
- Posts
- 26
Any idea why this hasn't been mentioned yet on this forum?? Just curious as to what the masses have to think about this decision.
United Adds Regional Carrier At Dulles
Atlantic Coast to Lose Flights to Trans States
By Sara Kehaulani Goo
Washington Post Staff Writer
Friday, July 11, 2003; Page E01
United Airlines announced yesterday that it reached a deal with a St. Louis regional carrier to operate some United Express flights out of its hub at Dulles International Airport, delivering a major blow to Dulles-based Atlantic Coast Airlines.
Atlantic Coast, which employs about 1,900 workers locally, currently operates the United Express flights at Dulles. They account for 85 percent of the small airline's business. Last week, Atlantic Coast said it failed to reach an agreement with United to continue the service as United seeks to cut costs amid its bankruptcy restructuring.
"We are still hopeful that we will get a resolution" with Atlantic Coast, said United spokesman Jason Schechter. "But with or without ACA, we are committed to bringing United Express's costs to market levels."
United would not say yesterday how many United Express flights now flown by Atlantic Coast will be taken over by the new carrier, Trans States Airlines. Atlantic Coast's stock fell 60 cents, or 5.5 percent, yesterday to close at $10.33 on the Nasdaq Stock Market.
Aviation analyst Doug Abbey said he still expects Atlantic Coast to reach an agreement to provide some service for United at Dulles. "But by the looks of things, it doesn't look to be the scope as it has been," Abbey said.
An Atlantic Coast spokesman declined to comment on United's announcement.
United said yesterday that it reached a "memorandum of understanding" with Trans States, which operates 570 daily flights across the country for American Airlines and US Airways using regional jets and turboprops. Trans States' only regional presence is at Baltimore-Washington International Airport, where it operates a handful of turboprop flights as US Airways Express.
The United deal calls for privately held Trans States to provide 25 50-seat regional jets "within months" for shorter flights that feed into United's Chicago and Washington hubs. Schechter said he expects Trans States to have "a strong operation out of Dulles and Chicago. They are a significant partner," he said.
United recently reached deals with several other regional carriers, including Mesa Air Group, SkyWest Inc. and Air Wisconsin Corp., to operate its United Express flights elsewhere across the country.
United's talks with Atlantic Coast have stalled over the regional carrier's fees. Atlantic Coast's current contract with United allows the regional carrier to be paid a flat fee for every flight it operates as United Express, regardless of how many passengers are on board. United favors a different payment arrangement to lower its costs.
Trans States spokesman Bill Mischk said his airline, which employs 1,100, is looking to hire flight crews and other employees to begin the service. The deal "represents an important expansion and growth for us in a different geographic region," Mischk said.
Leo J. Schefer, executive director of the Washington Airports Task Force, a group that markets the local airports, said the Trans States arrangement, which is not a final contract, will put pressure on Atlantic Coast to cut its own deal with United. "I read this as hedging one's bets and bringing pressure" to Atlantic Coast, Schefer said.
© 2003 The Washington Post Company
P.S. Don't kill the messenger.
United Adds Regional Carrier At Dulles
Atlantic Coast to Lose Flights to Trans States
By Sara Kehaulani Goo
Washington Post Staff Writer
Friday, July 11, 2003; Page E01
United Airlines announced yesterday that it reached a deal with a St. Louis regional carrier to operate some United Express flights out of its hub at Dulles International Airport, delivering a major blow to Dulles-based Atlantic Coast Airlines.
Atlantic Coast, which employs about 1,900 workers locally, currently operates the United Express flights at Dulles. They account for 85 percent of the small airline's business. Last week, Atlantic Coast said it failed to reach an agreement with United to continue the service as United seeks to cut costs amid its bankruptcy restructuring.
"We are still hopeful that we will get a resolution" with Atlantic Coast, said United spokesman Jason Schechter. "But with or without ACA, we are committed to bringing United Express's costs to market levels."
United would not say yesterday how many United Express flights now flown by Atlantic Coast will be taken over by the new carrier, Trans States Airlines. Atlantic Coast's stock fell 60 cents, or 5.5 percent, yesterday to close at $10.33 on the Nasdaq Stock Market.
Aviation analyst Doug Abbey said he still expects Atlantic Coast to reach an agreement to provide some service for United at Dulles. "But by the looks of things, it doesn't look to be the scope as it has been," Abbey said.
An Atlantic Coast spokesman declined to comment on United's announcement.
United said yesterday that it reached a "memorandum of understanding" with Trans States, which operates 570 daily flights across the country for American Airlines and US Airways using regional jets and turboprops. Trans States' only regional presence is at Baltimore-Washington International Airport, where it operates a handful of turboprop flights as US Airways Express.
The United deal calls for privately held Trans States to provide 25 50-seat regional jets "within months" for shorter flights that feed into United's Chicago and Washington hubs. Schechter said he expects Trans States to have "a strong operation out of Dulles and Chicago. They are a significant partner," he said.
United recently reached deals with several other regional carriers, including Mesa Air Group, SkyWest Inc. and Air Wisconsin Corp., to operate its United Express flights elsewhere across the country.
United's talks with Atlantic Coast have stalled over the regional carrier's fees. Atlantic Coast's current contract with United allows the regional carrier to be paid a flat fee for every flight it operates as United Express, regardless of how many passengers are on board. United favors a different payment arrangement to lower its costs.
Trans States spokesman Bill Mischk said his airline, which employs 1,100, is looking to hire flight crews and other employees to begin the service. The deal "represents an important expansion and growth for us in a different geographic region," Mischk said.
Leo J. Schefer, executive director of the Washington Airports Task Force, a group that markets the local airports, said the Trans States arrangement, which is not a final contract, will put pressure on Atlantic Coast to cut its own deal with United. "I read this as hedging one's bets and bringing pressure" to Atlantic Coast, Schefer said.
© 2003 The Washington Post Company
P.S. Don't kill the messenger.
