DULLES, Va., July 2 /PRNewswire-FirstCall/ –The Company has been engaged in discussions periodically with United Airlines, Inc. related to the terms of a new agreement to replace the existing United Express Agreements between the parties. Although the Company and United have recently exchanged proposals, the parties were unable to reach an agreement onterms the Company believes acceptable during their last discussions on June 30. The Company continues to develop contingency plans to allow it to establish an alternative to the United business in the event that satisfactory arrangementsfor future United Express service cannot be agreed with United. The Company would pursue such an alternative if it is considered by management to offer more favorable prospects than offered by United. The Company cannot predict the timing or outcome of any decision by United with respect to the Company’s code share arrangements.

More negotiations (in public) via press release. Aside from attempting to calm the investors and prevent stampede, this latest was certainly directed at bunkered UAL negotiators on the other side of the card table. With their best poker face ACA hints that there is an ‘alternative’. While I like to think that there IS a contingency plan(s) for ACA, this gem could have been pure bluff. (See your hand and raise you ____ ) ACA does not wish to accept new adverse terms forced by UAL’s bankruptcy advantage. Is ACA posturing for escape or extracting their best deal. Great struggle! The stakes?: UAL looses – route network takes big hit, emergence from Ch. 11 postponed. Or ACA looses – negative growth, slow death… Do they have the cards??