RDU Carrier's Parent to Offer $125M in Debt

February 19, 2004

RDU Carrier's Parent to Offer $125M in Debt
Raleigh Triangle Business Journal, NC


The parent company of Dulles, Va.-based Atlantic Coast
Airlines, which employs 50 people at Raleigh-Durham
International Airport, plans to offer $125 million in
convertible debt to generate working capital for
general corporate purposes, Atlantic Coast Airlines
Holdings Inc. said Thursday. 

 
The company said the notes will bear interest and will
be convertible into shares of the company's common
stock at a rate and price to be determined. 

Atlantic Coast Airlines operates as a commuter carrier
for Delta Connection and for United Express in the
Eastern and Midwestern United States. Out of RDU, it
operates four flights for Delta Connection and three
for United Express. 

In July 2003, ACA announced plans to transform itself
into an independent, low-fare airline to be based at
Washington Dulles International Airport. The new
airline, to be called Independence Air, would operate
a fleet of at least 112 jets to destinations in 50
cities. 

Rick DeLisi, an ACA spokesman, told Triangle Business
Journal in January that the airline was considering
operating as many as 14 to 16 daily round-trip flights
between RDU and Dulles. 

ACA hopes to launch its own flights under the
Independence Air brand in the first half of 2004 but
can't do so unless bankrupt United lets ACA out of its
commuter carrier contract. 



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