any news on ACA with UAL's deal?

[walkthasky]

From what i have been told recently, that is true. ACA does own the gates. Good advantage if ever needed to start up as "Atlantic Coast Airlines"

my .02

 

[Sppedmode]

I don't know if anyone already posted this article, but it is very interesting...

United Bankruptcy Will Hit Small Carriers

MILWAUKEE, Dec 10, 2002 (AP Online via COMTEX) -- Small regional airlines that were partners with United Airlines could lose money in the short run because of United's bankruptcy. But the carriers eventually could benefit if the world's No. 2 airline is forced to abandon some of its smaller routes, industry analysts say.

United Airlines made the largest bankruptcy filing in aviation history Monday, after the suburban Chicago-based company lost $4 billion in the last two years. It faced debt payments of $875 million later this week.

"No one is going to come out unscathed, and that includes the regional carriers," said Robert Mann, an airline consultant with R.W. Mann & Co. in Port Washington, N.Y.

United has said it will conduct business as usual, but some passengers are certain to steer away from an airline they know is struggling, Mann said.

That dip in ticket sales will hurt United's regional carriers, which act like a taxi service to get passengers from small markets to the main carrier's hub airports, Mann said.

United offers 1,800 flights a day to nearly 150 destinations through Air Wisconsin, Sky West Airlines and Atlantic Coast Airlines.

"As far as we're concerned, United will still fly and will continue to rely on the strength of its feeder airlines like Air Wisconsin," Air Wisconsin spokeswoman Christine Mangi said Monday. "We have made no plans to change our service nor do we expect to."

Mangi said Air Wisconsin still plans to add 150 jobs and buy at least 64 new Bombardier regional jets.

Air Wisconsin, based in Appleton, feeds United Airlines at Chicago, Washington, Los Angeles and Denver. Like many regional carriers, Air Wisconsin is an independent company that provides United with jets and crew, while United handles ticketing and marketing.

United then pays Air Wisconsin a portion of the money it collects from selling the tickets. These agreements generally ensure that the regional airline turns a profit, Mann said.

United's regional carriers may have to say goodbye to such deals because bankruptcy court could force United to cut any operation that is not contributing to the bottom line, Mann said.

Regional carriers could take over smaller routes United flies with its own jets and crew, making the regional airlines larger, Mann said. But handling the routes on their own is risky for the regional airlines because then they aren't guaranteed a profit, Mann said.

Bill Oliver, an aviation analyst with the Boyd Group, in Evergreen, Colo., said instead of making the leap to becoming full-fledged airlines, regional carriers might start hedging their bets by entering agreements with a number of airlines.

Sky West and Atlantic Coast already offer flights with Delta, and Air Wisconsin agreed to operate flights out of Atlanta with AirTran Airways in September.

Phoenix-based Mesa Airlines handles regional flights for four different major carriers.

"What we might see is more airlines taking the same path as Mesa Airlines, and not putting their eggs all in one basket, trying to spread them around," Oliver said. "There seems to be less risk to do that than to start up your own airline."

Major airlines have been turning to regional carriers with more frequency, Oliver said. For example, US Airways has 10 regional carriers, three of which are wholly owned subsidiaries.

Oliver said regional operations still do not account for much of the major airlines' business and said the most regional services contribute to a major airline's revenue would be around 20 percent.

Although analysts say the possible benefits of United's bankruptcy for regional airlines are a ways off, the smaller carriers should not be too concerned about the immediate future.

"I think when your primary benefactor is in a period of bankruptcy, you're going to feel a little nervous," Oliver said. "But it's not a time to panic. We're not seeing a doomsday scenario

 

[C-5 MEM]

Jetsnake,


When did you go to school at ACA?

 

[flx757]

Saw this bit of news as well:

Atlantic Coast Airlines owed $10 mln by United


Wednesday December 11, 4:27 PM EST

DULLES, Va., Dec 11 (Reuters) - Regional air carrier Atlantic Coast Airlines (ACAI) said on Wednesday that bankrupt carrier United Airlines owes it about $10 million for costs rung up before United filed for bankruptcy on Monday.

Atlantic Coast provides service as United Express under a contract with United Airlines, a unit of UAL Corp. (UAL), and owes United about $4 million for services provided before the bankruptcy that might ultimately offset that exposure.

The airline also said it expects to take delivery of new Canadair Regional Jets for United Express service from Canadian plane maker Bombardier (BBDb) scheduled through February and will assess future deliveries based on its United agreement.

Atlantic Coast took delivery of a jet Tuesday. It expects to take another jet in December, three in January and two in February. Financing was in place before United's bankruptcy and the parties have said they are prepared to go forward.

 

[Skank]

I consider these articles to be fairly speculative as well. Especially when they characterize UEX service as a "taxi service." You have to be somewhat clueless to call a part 121 carrier a "taxi service." Anyway, some of what they say may turn out to be true, but I bet they are guessing as much as we are at this point.

Good luck to all the good people at the respective UEX carriers. I will always find room for you on my jumpseat(s).

 

[C-5 MEM]

Once again, individuals who don't even work at ACA are trying to be a an Moore or Skeen. For those who like to stir up the muddy water, I would ask you to keep those comments to yourself. So far I have heard everything from ACA going out of business to it taking over the routes of UAL. I say let things happen then report it.