Profit-leader ACA builds its case for new low-fare venture
During a quarter in which all the big publicly traded regional airlines turned a handsome profit, it came as little surprise that Atlantic Coast Airlines l

During a quarter in which all the big publicly traded regional airlines turned a handsome profit, it came as little surprise that Atlantic Coast Airlines led the pack, as the Sterling, Va.-based carrier prepared to embark on the most ambitious, and perhaps riskiest, undertaking in its 14-year history. While fellow United Express carriers SkyWest and Air Wisconsin accept revisions to their fee-per-departure contracts that result in suppressed yields but further flying opportunities with 70-seat jets, ACA has refused to acquiesce, a stand largely reflected in its impressive profits for the second quarter, but one that will most likely result in the end of its relationship with United Airlines.

After months of fruitless negotiations for a new code-share deal with United, ACA essentially gave up trying and chose to pursue a new plan to become an independent low-fare carrier based at Washington Dulles Airport. The plan involves the continued use of ACA’s 85 fifty-seat Bombardier CRJs on routes of up to 1,000 miles and a new fleet of either Boeing 737s or Airbus A320-family jets for transcontinental routes. However, ACA said it will likely cancel delivery of the final 34 CRJs it holds on firm order, a contractual option it may exercise if its United relationship ends.