Exhibit 99
For Immediate Release Contact: Rick DeLisi
July 2, 2003 Director, Corporate Communications
Page 1 of 2 (703) 650-6550
Atlantic Coast Airlines Update on
Negotiations With United Airlines, Inc.
Dulles, VA, (July 2, 2003) - Atlantic Coast Airlines, the
Dulles, VA-based United Express regional carrier (ACA)
(NASDAQ/NM: ACAI) today announced the following with regard
to its United Express program.
The Company has been engaged in discussions periodically
with United Airlines, Inc. related to the terms of a new
agreement to replace the existing United Express Agreements
between the parties. Although the Company and United have
recently exchanged proposals, the parties were unable to
reach an agreement on terms the Company believes acceptable
during their last discussions on June 30. The Company
continues to develop contingency plans to allow it to
establish an alternative to the United business in the event
that satisfactory arrangements for future United Express
service cannot be agreed with United. The Company would
pursue such an alternative if it is considered by management
to offer more favorable prospects than offered by United.
The Company cannot predict the timing or outcome of any
decision by United with respect to the Company's code share
arrangements.
Statements in this press release and by Company executives
regarding its relationship with United Airlines, Inc. and
the implementation of alternative business plans, as well as
regarding projections and expectations of future aircraft
deliveries, availability of financing, future payments by
United, operations, earnings, revenues and costs represent
forward-looking information. A number of risks and
uncertainties exist which could cause actual results to
differ materially from these projected results. Such factors
include, among others: United's decision to elect either to
affirm all of the terms of the Company's United Express
Agreement, or to reject the agreement in its entirety, the
timing of such decision, efforts by United to negotiate
changes prior to making a decision on whether to affirm or
reject the contract, the ability and timing of agreeing upon
rates with United, the Company's ability to collect pre-
petition obligations from United or to offset pre-petition
obligations due to United, the Company's ability to collect
post-petition amounts it believes are due from United for
rate adjustments and United's ability to successfully
reorganize and emerge from bankruptcy; the continued
financial health of Delta Air Lines, Inc.; changes in levels
of service agreed to by the Company with its code-share
partners due to market conditions, and willingness of
finance parties to continue to finance aircraft in light of
the United situation and of market conditions generally, the
ability of these partners to manage their operations and
cash flow, and ability and willingness of these partners to
continue to deploy the Company's aircraft and to utilize and
pay for scheduled service at agreed upon rates; general
economic and industry conditions; additional acts of war;
and risks and uncertainties arising from the events of
September 11, the impact of the outbreak of Severe Acute
Respiratory Syndrome on travel and from the slow economy,
any of which may impact the Company, its code-share
partners, and aircraft manufacturers in ways that the
Company is not currently able to predict. These and other
factors are more fully disclosed under "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition
and Results of Operations" in ACAI's Annual Report on Form
10-K for the year ended December 31, 2002 and in its
Quarterly Report on Form 10-Q for the three-month period
ended March 31, 2003. These statements are made as of July
2, 2003 and ACA undertakes no obligation to update any such
forward-looking information, even in the event that the
status of its negotiations with United changes, or as a
result of any other new information, future events, changed
expectations or otherwise.
ACA operates as United Express and Delta Connection in the
Eastern and Midwestern United States as well as Canada. The
Company has a fleet of 148 aircraft-including a total of 118
regional jets-and offers over 840 daily departures, serving
84 destinations.
Atlantic Coast Airlines employs over 4,800 aviation
professionals. The common stock of parent company Atlantic
Coast Airlines Holdings, Inc. is traded on the Nasdaq
National Market under the symbol ACAI. For more information
about ACA, visit our website at www.atlanticcoast.com.