Atlantic Coast Airlines
Encyclopedia
Atlantic Coast Airlines was an airline
based in the United States
owned by Atlantic Coast Holdings, Inc.. It operated as United Express
for United Airlines
and Delta Connection
for Delta Air Lines
. It was headquartered in the Dulles
area of unincorporated
Loudoun County
, Virginia
, United States
. Previously it was headquartered in Reston
, unincorporated Fairfax County
. Before then, it was headquartered in Sterling
, unincorporated Loudoun County.
Atlantic Coast Airlines operated United Express flights out of Dulles and O'Hare International Airport
in Chicago with Jetstream 32, Jetstream 41 and Canadair
regional jet
aircraft. Their Delta Connection flights out of Logan International Airport
in Boston, Massachusetts, New York City
's LaGuardia Airport
, and Cincinnati-Northern Kentucky International Airport in Covington, Kentucky
were operated with the Fairchild Dornier 328. During 2003 revenues were generated about 80% from United Express operations and 20% from Delta Connection.
United Airlines entered bankruptcy protection in December 2002. At that time United Airlines contracted a consulting firm, Bain, to renegotiate its regional partners contracts. Atlantic Coast Airlines employees and management went though a significant cost reduction program to remain competitive as a United Express carrier. Presented with overwhelming competition from other regional airlines Atlantic Coast Airlines and United Airlines were unable to negotiate a mutual agreement. At that time Atlantic Coast Airlines continued to honor its 10 year contract with United Airlines. Expecting that United would be unable to honor that contract, Atlantic Coast Airlines developed an alternate business plan.
After announcing plans to part with United Airlines, Atlantic Coast Airlines' significant cash position made it a prime target for a takeover attempt. Mesa Air Group
launched an attempt at a hostile takeover in the Summer of 2003, engaging in what some allege were significant U.S. Securities and Exchange Commission violations. At the same time the employees of Atlantic Coast Airlines organized a grass roots
effort to avert the takeover attempt. Within a few months the stock purchase plan was removed by Mesa.
On November 19, 2003 Atlantic Coast Airlines announced that it would become a low cost carrier under the name of Independence Air
. Its status as a United Express carrier ended on August 4, 2004 and its status as a Delta Connection carrier ended November 2, 2004. Operations as Independence Air began on 16 June 2004. On January 5, 2006 Independence Air
ceased operations.
On March 10, 2006, Northwest Airlines
purchased the DOT Operating Certificate of then-Independence Air with the intent to use that certificate to form a new regional subsidiary. The result was Compass Airlines
, which began service using E175 jets in August 2007.
The east coast division of West Air was created a few weeks after Presidential Airlines went bankrupt in 1989.
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
based in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
owned by Atlantic Coast Holdings, Inc.. It operated as United Express
United Express
United Express is a brand name under which eight regional airlines operate feeder flights for United Airlines. They primarily connect smaller cities with United's domestic hub airports and “focus cities,” although they offer some point-to-point service such as Sacramento to Eureka.As of Sept...
for United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
and Delta Connection
Delta Connection
Delta Connection is the name under which a number of individually owned regional airlines and one wholly owned regional carrier operate short and medium haul routes in association with Delta Air Lines Inc...
for Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
. It was headquartered in the Dulles
Dulles, Virginia
Dulles, Virginia is an unincorporated area located in Loudoun County, Virginia, part of the Washington Metropolitan Area. The headquarters of Orbital Sciences Corporation, GeoEye, and ODIN technologies and the former headquarters of MCI Inc...
area of unincorporated
Unincorporated area
In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...
Loudoun County
Loudoun County, Virginia
Loudoun County is a county located in the Commonwealth of Virginia, and is part of the Washington Metropolitan Area. As of the 2010 U.S. Census, the county is estimated to be home to 312,311 people, an 84 percent increase over the 2000 figure of 169,599. That increase makes the county the fourth...
, Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Previously it was headquartered in Reston
Reston, Virginia
Reston is a census-designated place in Fairfax County, Virginia, United States, within the Washington, D.C. metropolitan area. The population was 58,404, at the 2010 Census and 56,407 at the 2000 census...
, unincorporated Fairfax County
Fairfax County, Virginia
Fairfax County is a county in Virginia, in the United States. Per the 2010 Census, the population of the county is 1,081,726, making it the most populous jurisdiction in the Commonwealth of Virginia, with 13.5% of Virginia's population...
. Before then, it was headquartered in Sterling
Sterling, Virginia
Sterling, Virginia is a census-designated place in Loudoun County, Virginia. The population as of the 2010 Census was 27,822.It is located northwest of Herndon, east of Ashburn, and west of Great Falls, and includes part of Dulles International Airport and the former AOL corporate headquarters...
, unincorporated Loudoun County.
History
The airline was established and started operations on 15 December 1989 and had been in a marketing agreement with United Airlines since its inception. In 1999 it established Atlantic Coast Jet to operate as a Delta Connection carrier, but this was later reintegrated.Atlantic Coast Airlines operated United Express flights out of Dulles and O'Hare International Airport
O'Hare International Airport
Chicago O'Hare International Airport , also known as O'Hare Airport, O'Hare Field, Chicago Airport, Chicago International Airport, or simply O'Hare, is a major airport located in the northwestern-most corner of Chicago, Illinois, United States, northwest of the Chicago Loop...
in Chicago with Jetstream 32, Jetstream 41 and Canadair
Canadair
Canadair Ltd. was a civil and military aircraft manufacturer in Canada. It was a subsidiary of other aircraft manufacturers, then a nationalized corporation until privatized in 1986, and became the core of Bombardier Aerospace....
regional jet
Regional jet
A Regional jet , is a class of short to medium-range turbofan powered airliners.-History:The term "Regional jet" describes a range of short to medium-haul turbofan powered aircraft, whose use throughout the world expanded after the advent of Airline Deregulation in the United States in...
aircraft. Their Delta Connection flights out of Logan International Airport
Logan International Airport
General Edward Lawrence Logan International Airport is located in the East Boston neighborhood of Boston, Massachusetts . It covers , has six runways, and employs an estimated 16,000 people. It is the 19th busiest airport in the United States.Boston serves as a focus city for JetBlue Airways...
in Boston, Massachusetts, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
's LaGuardia Airport
LaGuardia Airport
LaGuardia Airport is an airport located in the northern part of Queens County on Long Island in the City of New York. The airport is located on the waterfront of Flushing Bay and Bowery Bay, and borders the neighborhoods of Astoria, Jackson Heights and East Elmhurst. The airport was originally...
, and Cincinnati-Northern Kentucky International Airport in Covington, Kentucky
Covington, Kentucky
-Demographics:As of the census of 2000, there were 43,370 people, 18,257 households, and 10,132 families residing in the city. The population density was 3,301.3 people per square mile . There were 20,448 housing units at an average density of 1,556.5 per square mile...
were operated with the Fairchild Dornier 328. During 2003 revenues were generated about 80% from United Express operations and 20% from Delta Connection.
United Airlines entered bankruptcy protection in December 2002. At that time United Airlines contracted a consulting firm, Bain, to renegotiate its regional partners contracts. Atlantic Coast Airlines employees and management went though a significant cost reduction program to remain competitive as a United Express carrier. Presented with overwhelming competition from other regional airlines Atlantic Coast Airlines and United Airlines were unable to negotiate a mutual agreement. At that time Atlantic Coast Airlines continued to honor its 10 year contract with United Airlines. Expecting that United would be unable to honor that contract, Atlantic Coast Airlines developed an alternate business plan.
After announcing plans to part with United Airlines, Atlantic Coast Airlines' significant cash position made it a prime target for a takeover attempt. Mesa Air Group
Mesa Air Group
Mesa Air Group, Inc. is a Nevada Corporation commercial aviation holding company with headquarters in Suite 100 at 410 North 44th Street in the Camelback East area of Phoenix, Arizona, United States. The company operates one regional airline subsidiary: Mesa Airlines, and five supporting...
launched an attempt at a hostile takeover in the Summer of 2003, engaging in what some allege were significant U.S. Securities and Exchange Commission violations. At the same time the employees of Atlantic Coast Airlines organized a grass roots
Grass Roots
Grass Roots is an Australian television series produced by the Australian Broadcasting Corporation between 2000 and 2003.The series is set around the fictional Arcadia Waters Council near Sydney, and was primarily a satirical look at the machinations of local government...
effort to avert the takeover attempt. Within a few months the stock purchase plan was removed by Mesa.
On November 19, 2003 Atlantic Coast Airlines announced that it would become a low cost carrier under the name of Independence Air
Independence Air
Independence Air was a low-cost airline, owned by FLYi, Inc., headquartered in the Loudoun Gateway Corporate Center in Dulles, unincorporated Loudoun County, Virginia, United States that operated from 1989 until 2006. Its route network focused on the East Coast of the United States, but it also...
. Its status as a United Express carrier ended on August 4, 2004 and its status as a Delta Connection carrier ended November 2, 2004. Operations as Independence Air began on 16 June 2004. On January 5, 2006 Independence Air
Independence Air
Independence Air was a low-cost airline, owned by FLYi, Inc., headquartered in the Loudoun Gateway Corporate Center in Dulles, unincorporated Loudoun County, Virginia, United States that operated from 1989 until 2006. Its route network focused on the East Coast of the United States, but it also...
ceased operations.
On March 10, 2006, Northwest Airlines
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
purchased the DOT Operating Certificate of then-Independence Air with the intent to use that certificate to form a new regional subsidiary. The result was Compass Airlines
Compass Airlines (North America)
Compass Airlines is a regional airline headquartered at Minneapolis-St. Paul International Airport in Fort Snelling, Hennepin County, Minnesota; prior to December 16, 2009, it was headquartered in unincorporated Fairfax County, Virginia, United States, east of the Chantilly CDP...
, which began service using E175 jets in August 2007.
The east coast division of West Air was created a few weeks after Presidential Airlines went bankrupt in 1989.
External links
- Atlantic Coast Airlines (Archive)
- Eric Gillin, Eric. "Atlantic Coast Pushes Ahead With Plans to Become Low-Cost Carrier," TheStreet.com, November 19, 2003
- Employee Tribute Site