Atlantic Air to reject United offer--report
Monday July 28, 12:50 am ET
WASHINGTON, July 28 (Reuters) - Atlantic Coast Airlines Holdings Inc. (NasdaqNM:ACAI - News) plans to reject a new contract with bankrupt United Airlines (OTC BB:UALAQ.OB - News) and become a low-cost airline in the Washington region, the Washington Post reported on Monday.
Kerry Skeen, chairman and chief executive of the Dulles, Virginia-based company said Atlantic "decided the terms United has been proposing for a new contract aren't acceptable," the newspaper said.
United officials declined to comment to the paper.
The two airlines have been in talks for months over a long-term deal, but Skeen told the newspaper the low-cost carrier plan had been considered for two years and was a plan "much more attractive for our shareholders and employees".
Atlantic plans to sell tickets mainly through its Web site, and already has its own customer services agents and baggage handlers at many airports.
Its hub would be at Dulles International Airport, where most of the airline's 4,800 workers are based.
Skeen said the airline is contemplating a new name and plans a large advertising budget, as well as adding big jets to its fleet in a few years.
Atlantic said it planned to remain a regional operator for Delta Air Lines Inc (NYSE
AL - News), for which it provides Delta Connection regional service.
The airline's three unionized employees groups -- the flight attendants, pilots and mechanics -- will need to approve the plan, the newspaper said. Skeen told the newspaper the airline would not have to lower its employees' pay or lay off hundreds to workers to reduce costs.
The airline's new plans are to be announced on Monday, according to the paper.
Monday July 28, 12:50 am ET
WASHINGTON, July 28 (Reuters) - Atlantic Coast Airlines Holdings Inc. (NasdaqNM:ACAI - News) plans to reject a new contract with bankrupt United Airlines (OTC BB:UALAQ.OB - News) and become a low-cost airline in the Washington region, the Washington Post reported on Monday.
Kerry Skeen, chairman and chief executive of the Dulles, Virginia-based company said Atlantic "decided the terms United has been proposing for a new contract aren't acceptable," the newspaper said.
United officials declined to comment to the paper.
The two airlines have been in talks for months over a long-term deal, but Skeen told the newspaper the low-cost carrier plan had been considered for two years and was a plan "much more attractive for our shareholders and employees".
Atlantic plans to sell tickets mainly through its Web site, and already has its own customer services agents and baggage handlers at many airports.
Its hub would be at Dulles International Airport, where most of the airline's 4,800 workers are based.
Skeen said the airline is contemplating a new name and plans a large advertising budget, as well as adding big jets to its fleet in a few years.
Atlantic said it planned to remain a regional operator for Delta Air Lines Inc (NYSE
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The airline's three unionized employees groups -- the flight attendants, pilots and mechanics -- will need to approve the plan, the newspaper said. Skeen told the newspaper the airline would not have to lower its employees' pay or lay off hundreds to workers to reduce costs.
The airline's new plans are to be announced on Monday, according to the paper.