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ATLANTIC COAST AIRLINES HOLDINGS INC. /Dulles, Virginia New Pact Puts Airline In Better Business Class.(A)(The New America)

Investor's Business Daily

| March 01, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Robin M. Grugal

Investor's Business Daily

When UAL Corp.'s United Airlines hit some turbulence in the third quarter of last year, Atlantic Coast Air Holdings Inc. was forced to ride out the bumps alongside it.

The carrier, which flies under the United Express banner through an alliance with United Airlines, saw quarterly earnings plummet 25% from a year earlier. Service disruptions and ongoing pilot talks at United tainted the brand and hurt bookings.

But Atl

antic Coast had only itself to blame for its poor performance, sources say.

Its downfall wasn't in choosing to wear United's wings. Where it went wrong wasin its contract negotiations - agreeing to fly feeder flights for the world's largest airline on a pro-rated basis.

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