United Airlines` (BULLETIN BOARD: UALAQ) senior-most executives negotiated
extensively and in good faith with Atlantic Coast Airlines (ACA) to try to
reach a competitive United Express agreement similar to those we reached
with other carriers. We presented multiple enhanced offers to ACA and
remained in discussions until October 16, a day prior to ACA`s board
meeting. However, ACA`s management made clear that ACA—not United—
would not negotiate further.
United Airlines reaffirms categorically that it did not participate in
Mesa Air Group`s offer to acquire ACA, and to suggest otherwise is
baseless and irresponsible. In fact, United expressly declined Mesa`s
invitation to participate in its offer.
Because ACA insists on pursuing its new strategy, it is only prudent now
for United to examine all of its alternatives, including beginning
discussions with Mesa regarding United Express service in the event Mesa