Exhibit 99
For Immediate Release Contact: Rick DeLisi
November 28, 2000 Director, Public Relations
Page 1 of 2 (703) 390-5505
Atlantic Coast Airlines to Expand Regional Jet Fleet to 108
As Part of New Contract With United Airlines
10-Year Agreement Also Replaces Pro-Rate Flying with Fee-Per-
Departure Program
Dulles, VA, (November 28, 2000) - Atlantic Coast Airlines
Holdings, Inc. (Atlantic Coast) (NASDAQ/NM: ACAI), parent of
Atlantic Coast Airlines/United Express (ACA) today announced it
has reached agreement with United Airlines on a new 10-year
contract that increases the total number of regional jets it will
operate within the United Express program, and amends the
financial relationship between the two companies.
Under the terms of the new agreement-scheduled to take effect on
December 1, 2000-ACA/United Express will increase its number of
regional jets to 108 by the end of 2003. Today, the carrier
operates 34 Canadair Regional Jets (CRJs) as part of the United
Express program, with 12 more on firm order to be delivered
before the end of 2001. ACA previously announced conditional
orders with its regional jet manufacturers and will now begin the
process of finalizing firm orders for the 62 additional jets
needed to expand its United Express regional jet fleet from 46 to
108 jet aircraft.
As part of the new agreement signed with United, the financial
structure of the relationship between ACA and United will change
from a pro-rate contract to a fee-per-departure arrangement.
This insures that Atlantic Coast will receive a fee from United
for each departure completed by ACA. The fee-per-departure
arrangement is structured to mitigate earnings volatility due to
external factors such as fuel and passenger yields. United will
take full control of seat inventory, as well as complete
responsibility for selection of destinations and schedules served
by all ACA aircraft.
Atlantic Coast Chairman and Chief Executive Officer Kerry Skeen
said, "We are pleased that this new agreement solidifies our
relationship with United and allows us to continue to build our
United Express operation. By nearly tripling the number of
regional jets in the ACA system-compared to the current total-as
well as anchoring revenue growth and stability, this allows us to
focus on executing our ongoing growth plan in a more predictable
earnings environment." He added, "The support we have received
from our partners at United has always been one of the
cornerstones of our success, and this renewed agreement allows us
to continue that relationship for many years to come, to the
benefit of both companies."
(-more-)
Atlantic Coast: New 10-Year Agreement With United Airlines
Page 2 of 2
The Atlantic Coast Board of Directors also authorized the company
to repurchase up to $20 million of its outstanding shares, in
addition to approximately $1.8 million remaining from the stock
repurchase program authorized in April, 1999 by the Board. The
repurchased shares will become treasury shares and will be used
for general corporate purposes, including the issuance of shares
in connection with grants and awards under the Company's stock-
based benefit plans.
As of November 10, 2000 the Company had 21,203,282 shares
outstanding.
On a separate note, the company announced that it currently
forecasts earnings for calendar year 2001 in the range of $2.00
to $2.25 per share. The company also reaffirmed its guidance for
fourth quarter 2000 earnings, which it expects to be between 45
and 53 cents per share.
Statements in this press release regarding projections and
expectations of future earnings, revenues and costs represent
forward-looking information. A number of risks and uncertainties
exist which could cause actual results to differ materially from
these projected results. Such factors include, among others,
unexpected costs or delays in the continuing implementation of
new service, adverse weather conditions, the ability to hire and
retain employees, and satisfactory resolution of amendable union
contracts. These factors are more fully disclosed under the
Company's "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in ACAI's Annual Report on
Form 10-K for the year ended December 31, 1999 and its Quarterly
Report on Form 10-Q for the period ended September 30, 2000.
Atlantic Coast undertakes no obligation to update any of the
forward-looking information included in this release, whether as
a result of new information, future events, changed expectations
or otherwise.
Atlantic Coast operates as Atlantic Coast Airlines/United Express
in the Eastern and Midwestern United States, and as Atlantic
Coast Jet/Delta Connection in the Eastern U.S. The company has a
fleet of 98 aircraft and offers approximately 650 daily
departures, serving 51 destinations in 24 states and employs over
3,000 aviation professionals. The common stock of Atlantic Coast
Airlines Holdings, Inc. is traded on the NASDAQ National Market
under the symbol ACAI.
# # #
PLEASE NOTE: The company will hold a conference call for analysts
to discuss the details of the new United agreement later
today-Tuesday, November 28 at 11:00am Eastern. The call will be
available as a webcast, accessible through the company's website
at www.atlanticcoast.com, in the "For Investors" section.
The webcast will be presented live, and will also be available
for replay until Thursday, November 30 at 5:00pm Eastern.
