Air Transport World

Regionals/specialty. (ATW's World Airline Report).(US regional airlines)

ALLEGHENY AIRLINES: Based in Harrisburg, Pa., Allegheny is a wholly owned subsidiary of US Airways operating as US Airways Express. It serves some 38 cities in 12 states in the eastern US with more than 380 daily flights using a fleet of Dash 8s. No new aircraft deliveries are scheduled.

ATLANTIC COAST AIRLINES: A Regional partner that flies as United Express and Delta Connection, ACA was forced to begin furloughing staff this year in an effort to reduce costs 10%-12%. It also enacted a hiring freeze, cut salaries for senior employees and reduced bonus programs.

Some of the financial insecurity stems from ACA's partnership with bankrupt United Airlines. "Everything is in a period of uncertainty right now," spokesperson Rick deLisi told ATW in the spring. The carrier has had difficulty obtaining financing for its firm orders of CRJs, in large measure because of United's problems. In May it reached an agreement to lengthen the delivery schedule for ordered Bombardier aircraft; 10 now are scheduled for delivery in 2003-04, nine in 2004-05 and 25 in 2005-06.

"Although recent steps taken by the Major US carriers to return to profitability have tended to increase the importance of regional jets to the industry, future implementation of RJ programs will depend on market conditions and relative cost structures," ACA stated in its latest 10-K financial report. …

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