UAL Corp confirms Atlantic Coast Airlines' agreement to buy regional carriers.
AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD
Atlantic Coast Airlines Holdings Inc (ACAI), the parent company of Atlantic Coast Airlines, has agreed to acquire three regional carriers from UAL Corp, the parent company of United Airlines.
The three carriers
Those carriers involved in the deal are Allegheny Airlines, Piedmont Airlines and PSA Airlines. The price for the airlines will be negotiated during the 18-month term of a promissory note and may vary 'substantially' from the amount of the note, Reuters reported. Further, ACAI will receive a fee of up to USD10.5m if it is not the final purchaser of at least one of the three carriers.
A statement released by UAL Corp indicated that the employees of the three carriers would be covered by a two-year no-layoff period and that all labour agreements in place would remain in effect and be honoured. All three carriers will become United Express carriers and communities will not suffer service losses due to the transition.
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In addition, make sure to read these articles:
- ATSB approves America West-US Airways merger.
- UAL Corp concedes US Airways deal unlikely to close in Q2.
- United Airlines' parent company reports loss of USD114m.
- Connecticut's Attorney General to investigate US Airways/UAL merger proposal.
- US airlines defend merit of merger proposal.
- US Airways employees guaranteed a two year employment period.
- Several major US carriers post Q2 losses.
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- UAL Corp. Maintains Court Order On Net Operating Losses.
- American Airlines vows to defend market position.
- UAL Corp to trade on Nasdaq as UAUA.
- UAL Corp to pay performance bonus to employees.
- Pennsylvanian Attorney General launches anti-trust probe into United Airlines/US Airways...
- Union accuses UAL Corp of leading employees on.
- UAL Corp. Posts $306 Million Loss
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