Ramon Lopez/WASHINGTON DC
United Airlines and Atlantic Coast Airlines (ACA) are negotiating the possible sale of three regional carriers owned by US Airways to Washington-based ACA.
The sale of PSA Airlines, Piedmont Airlines and Allegheny Airlines, which operate as US Airways Express, to rival ACA would be contingent on federal approval of United's planned acquisition of US Airways.
ACA confirms it is in discussions to acquire one or more regional carriers wholly-owned by US Airways. United only says that "there have been discussions with other parties about the possible disposition of PSA Airlines, Piedmont Airlines and Allegheny Airlines upon closing of the merger between United Airlines and US Airways."
ACA operates as United Express and Delta Connection, serving 51 cities in 24 US states. The three US Airways Express carriers fly to 70 destinations. The acquisition of all three rivals would make ACA the nation's second largest regional airline after American Eagle. In February, United indicated that a regional airline deal was necessary because of pay and benefits issues.
The sale talks come as US Airways sent a wobble through airline stocks after it disclosed that it expects first-quarter earnings to be well below the $1.12 per share loss forecast by financial analysts. The airline blames weak business travel, competition from low-fare rivals and rising fuel costs.
Source: Flight International
