UAL/Mesa/ACA news

[FDJ2]

Dow Jones Business News
UAL Ends Pact for Future Contract Service With Mesa
Monday December 22, 7:41 pm ET


CHICAGO -- UAL Corp. , parent of United Airlines, canceled an agreement with Mesa Air Group Inc. (NasdaqNM:MESA - News) on regional service that depended on Mesa's proposed takeover of United's regional contract carrier at Dulles International Airport.
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In a press release Monday, UAL cited a federal court decision Thursday to issue a temporary injunction against Mesa's offer for Atlantic Coast Airlines Holdings Inc. (NasdaqNM:ACAI - News) on antitrust concerns. Atlantic is the United Express contract carrier at Dulles International Airport.

Mesa had agreed to continue the service while Atlantic has said it doesn't want to play the contract flier role, and seeks to become an independent, low- cost airline.

"Given the uncertainty surrounding Mesa's consent solicitation" the agreement "no longer provides a good basis for the purposes of United's ongoing business planning," Doug Hacker (News) , United's executive vice president for strategy, said in a statement.

Mr. Hacker added that if Atlantic Coast Airlines discontinues its contract carrier agreement at Dulles, UAL has completed planning for the aircraft and baggage handling capabilities to maintain United Express service there.

The court decision came on the heels of a Justice Department antitrust investigation into Mesa Air's hostile bid for Atlantic Coast.

 

[FDJ2]

more news

Press Release Source: UAL Corporation


UAL Ends Non-Binding MoU With Mesa Related to Mesa's Proposed Acquisition Of ACA
Monday December 22, 5:16 pm ET
United Remains Committed to Dulles Hub and Providing Competitive Fares And Full Schedule of Flights for Washington Area Customers and Spoke Cities
Plans Developed to Maintain UAX Service at Dulles


CHICAGO, Dec. 22 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today notified Mesa Airlines of United's decision to end the non-binding memorandum of understanding between the two companies regarding Mesa's proposed acquisition of Atlantic Coast Airlines Holdings, Inc. (ACA), United's current United Express contract carrier at Dulles International Airport, Washington, D.C.
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Doug Hacker, United's Executive Vice President - Strategy, said, "Given the uncertainty surrounding Mesa's consent solicitation created by the preliminary injunction issued in federal court on December 18, the Memorandum of Understanding no longer provides a good basis for the purposes of United's ongoing business planning. United remains committed to our Dulles hub and to continuing to provide reliable, high-quality service to United Express customers at Dulles and the spoke cities served. United now will focus only on our other alternatives and continue to move steadily forward in the best interests of our customers, our employees and our creditors."

ACA has made clear that it no longer wants to serve as United's contract United Express carrier at Dulles. United has developed a comprehensive plan to ensure that a full schedule of flights at competitive fares will continue to be available to United's customers at Dulles.

Hacker added, "Our discussions with the Metropolitan Washington Airport Authority concerning our facilities plan have been very positive and are continuing. As a prudent business matter, we also have completed planning for the appropriate aircraft and baggage handling capabilities to maintain United Express service intact at Dulles, should it become necessary."

United and United Express operate more than 3,300 flights a day on a route network that spans the globe. News releases and other information about United can be found at the company's web site at www.united.com .

 

[StarChecker]

Mr. Hacker added that if Atlantic Coast Airlines discontinues its contract carrier agreement at Dulles, UAL has completed planning for the aircraft and baggage handling capabilities to maintain United Express service there.

Wonder who that deal is with....

 

[azpilot]

Mesa officially dropped its bid for ACA this morning. Good luck ACA/Independence Air. Glad this isn't going to happen.

- AZPilot

 

[Question4U]

Who knows??

AWAC already has a contract to start doing some of the groud handling at IAD and has been steadily hiring in the the area. They also have the contract to do all the ground handling in ORD. I think it's encouraging since the infrastructure is being built up there that they will get a piece of the flying that is left, but who knows maybe the 3 amigos are happy making $$ has ground handlers and the flying will all go to "value carriers"

 

[Diesel]

F off JO.

 

[captjim]

Congratulations ACA!!!

Mesa Air withdraws its bid for Atlantic
By Amy Yee in New York
Published: December 23 2003 16:44 | Last Updated: December 23 2003 16:44


What would have been the airline industry's first hostile takeover in 20 years ended with a whimper on Tuesday when Mesa Air said it would scrap its bid for Atlantic Coast Airlines. The takeover would have created the nation?s largest regional airline.


The news comes a day after United Airlines said it would terminate a crucial agreement with Mesa that would have allowed the regional carrier to fly United Express routes from Washington Dulles Airport.

Mesa's bid was dealt a heavy blow when federal authorities last week launched an antitrust investigation into Mesa's takeover plan and United's role in the deal.

Atlantic currently operates the United Express routes under a contract that will end next year. The developments leaves United the task of finding another regional airline to operate United Express from Dulles as it also prepares to emerge from Chapter 11 bankruptcy.

The United-Mesa agreement had been contingent on Mesa's acquisition of Atlantic, but last week the Department of Justice last Thursday announced an antitrust investigation, casting a shadow on the world?s second largest airline as it sought to secure $1.6bn in federal loan guarantees as it prepares to exit bankruptcy.

Separately, a US district court on Thursday granted Atlantic's motion for a preliminary injunction against Mesa, which prohibited Mesa from moving ahead with attempts to replace Atlantic's board. The District of Columbia Corporation Counsel and the Virginia attorney general were also investigating Mesa?s proposed takeover.

Doug Hacker, United executive vice-president, said on Tuesday: "Given the uncertainty surrounding Mesa's consent solicitation created by the preliminary injunction issued in federal court on December 18, the Memorandum of Understanding no longer provides a good basis for the purposes of United's ongoing business planning."

United said it would continue its United Express service. Ray Neidl, airline analyst at Blaylock & Partners, said there were other regional airlines, such as Sky West, Express Jet and Trans State, that could replace Atlantic as United Express operator.

 

[Piedmonster]

a lump of coal in JO's stocking

Hurray for ACA and Fuk off Johnny Orenstein, this news just made my Christmas!