Atlantic Southeast Airlines

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Incorporated: 1979
NAIC: 481111 Scheduled Passenger Air Transportation

Atlantic Southeast Airlines, Inc. (ASA) is a leading regional airline based in Atlanta, Georgia. A subsidiary of Delta Air Lines, Inc. since 1999, ASA carries more than six million passengers a year, with a large portion of them making connections to mainline Delta flights.

Atlantic Southeast Airlines was formed after Southern Airways, a local carrier based in Atlanta, agreed to merge with North Central Airlines in 1978. Three Southern Airways executives--George F. Pickett, Jr., Robert Priddy, and John Beiser--resigned in January 1979 to form their own airline. Atlantic Southeast Airlines was registered on March 12, 1979 and began service on June 26.

Pickett, Priddy, and Beiser believed Republic Airlines--the sum of the Southern/North Central merger--would neglect local routes as it attempted to expand nationally after the merger went into effect in July 1979. They raised $260,000 from investors who shared this belief.

ASA's first scheduled service consisted of daily flights between Atlanta and Columbus, Georgia, via a single, 14-seat Twin Otter aircraft. The airline carried 12,000 passengers its first year. Macon, Georgia, was added in 1980. By 1982, ASA was connecting 16 destinations.

In 1983, ASA acquired Coastal Air Limited, which had been operating as Southeastern Airlines, gaining a new hub in Memphis as well as nine other new markets in Georgia, Florida, Mississippi, and Tennessee. By this time, ASA was trading over-the-counter under the NASDAQ ticker symbol ASAI.

One outstanding feature of ASA's success, wrote R.E.G. Davies and George Haddaway in their book Commuter Airlines of the United States, was the airline's ability to keep its break-even load factor in the neighborhood of 33 to 36 percent. The airline only had to fill a third of its available seats to make money; the rest was profit.

Delta Air Lines, the major carrier based in Atlanta, had also been growing since deregulation in the early 1980s. ASA became a "Delta Connection" airline traffic provider on May 1, 1984; its flights were listed in computer reservation systems with Delta's prefix (DL), leading travel agents to route Delta's connecting flights to ASA. ASA's net income tripled to $5 million in the first year of this new association. In May 1986, Delta acquired 20 percent of ASA's voting stock for about $38 million.

On December 14, 1986, ASA opened a new hub at Dallas/Ft. Worth International, which was dominated by American Airlines, not Delta. Within six months, ASA was flying 110 daily flights out of DFW, connecting nine cities. Revenues for the year were $92.3 million, up 22.5 percent from 1985. Net income increased slightly to $10 million. ASA was already known as the most profitable commuter airline in the United States, though price competition was putting new pressure on margins. Delta's merger with Western Airlines, announced in 1987, created even more demand, yet profits soon stalled, noted Business Week, due to ASA's investment in its new hubs.

A strike at Eastern Airlines, Delta's main competitor in Atlanta, worked in ASA's favor. The strike cut Eastern's traffic by 60 percent and drove thousands of passengers to Delta and ASA. Revenues increased to $181 million in 1989, making ASA second only to WestAir among U.S. commuter airlines.

One of the three original founders, Robert Priddy, left the company in 1987. After working with Air Midwest and Mesa Airlines, he created another Atlanta-based airline: ValuJet (later called AirTran).

The 1990s began with disaster for ASA: the April 5, 1991 crash of an Embraer EMB-120 Brasilia turboprop near Brunswick, Georgia, killed 23 people. The fact that former Senator John G. Tower was among the fatalities compounded the media's exposure. The National Transportation Safety Board (NTSB) cited a malfunctioning propeller as the likely cause. Nevertheless, ASA's financial state remained healthy. It posted a record $32.5 million profit in 1991, while its giant partner Delta lost $239.5 million. Other feeder airlines were tending to fare better than the majors, who collectively were losing billions due to the Gulf War and a worldwide economic downturn. ASA's fortunes continued to grow into the mid-1990s, as competing feeder airlines dropped out of certain markets.

Turboprop airliners used by various regional carriers continued to malfunction into the mid-1990s, creating negative publicity for this sector of the airline industry. An ASA aircraft suffered another fatal crash on August 21, 1995, near Carrollton, Georgia. Also attributed to a propeller failure, this was ASA's 12th accident since 1983.

ASA had operated a number of different types of turboprop aircraft since its founding, including the Embraer EMB-110 Bandeirante and EMB-120 Brasilia (for which it was the launch customer in 1985), the de Havilland Dash 7, the Shorts 360, and the ATR 72. Company executives had considered operating small jets for several years but rejected the idea due to fear of alienating their major airline partner. Finally, in late 1995, ASA began leasing five British Aerospace BAe 146 jets configured to seat 88 passengers each. In addition to offering passengers greater perceived comfort and safety, the jets tripled the range of ASA's turboprop-driven planes. This made them perfect for picking up some longer, low-traffic routes that Delta was handed over to ASA. However, the BAe 146 ultimately proved to be rather unreliable, resulting in an embarrassing number of canceled flights just as Atlanta was hosting the 1996 Summer Games.

ASA wagered its fortunes on an even smaller jet, the Canadair Regional Jet built by Bombardier. In 1997, the carrier ordered 30 of these sleek, 50-seat planes and placed options on

From 1,600 employees in 1995, employment at ASA grew to about 2,500 in the late 1990s. Record hiring by the airline industry meant that ASA would soon resort to classified ads to find qualified pilots. Many pilots saw regional airlines such as ASA as a transitional step towards a job with the majors, resulting in a constant need for new flight crews. ASA had 850 pilots in 1999; 200 of them were new hires.

ASA Holdings, parent company of Atlantic Southeast Airlines, Inc., agreed to be acquired by Delta in early 1999. Delta had proposed the buyout in late January at the same time it was demanding changes in its relationship with ASA that would certainly cut into the regional's profits, reported the Atlanta Journal and Constitution. Passengers connecting from Delta flights accounted for 80 percent of ASA's business. The ASA board agreed to sell the 80 percent of the company that Delta did not already own for about $700 million rather than watch its share values dwindle. ASA became a wholly owned subsidiary of Delta in May 1999.

Delta soon began integrating ASA's Atlanta schedule more closely with its own, an action that allowed the major airline to transfer its larger jets to longer routes. The acquisition of ASA was intended to keep other carriers from making inroads into Delta's strongest areas, the Southeast and Texas. However, with the purchase came a large pay differential between Delta and ASA pilots that threatened to become a contentious bargaining issue, noted the New York Times. American Airlines, which had recently acquired Reno Air Inc., faced a similar situation, which resulted in work disruptions.

The remaining two founders, George F. Pickett, Jr., and John Beiser, left ASA after it was acquired by Delta. Skip Barnette, the first head of Delta Express, a low-cost offshoot of Delta, was made ASA's new CEO. His immediate goal was to raise the level of customer service, which had fallen markedly in the past few years, to the standards that its parent company had set.

A $4 million renovation of ASA's Atlanta facilities was launched almost immediately; another $14 million in capital investment from Delta soon followed as well as acquisitions of new aircraft. In contrast to the slow expansion that characterized ASA's first years in business, in 2000 ASA added 22 new markets and 18 new planes, lifting the fleet to 106 aircraft. Employment reached 3,500.

As reported by Air Transport World, Delta was using some of ASA's 38 regional jets as a cost-effective way to test new markets. When demand grew sufficiently, as on routes to Manchester, New Hampshire, and Jacksonville, Florida, Delta assigned its own larger planes to them. At the same time, it would replace mainline service with regional jets when demand fell, as in Chattanooga, Tennessee, and Augusta, Georgia.

Principal Competitors

AirTran Holdings, Inc.; AMR American Eagle Holding Corporation; Atlantic Coast Airlines Holdings, Inc.; Comair, Inc.

Further Reading

Arnoult, Sandra, "The Vision Thing," Air Transport World, January 2001, pp. 52-53.

"ASA's Goals Achieved Through Slow, Consistent Growth," Aviation Week & Space Technology, August 10, 1998, p. 63.

"ASA Shareholders Sue to Block Acquisition of Airline by Delta," Wall Street Journal, March 8, 1999, p. B5.

"Atlantic Southeast Airlines: The Regionals Take Off," Financial World (New York), June 8, 1993, p. 44.

Brannigan, Martha, "Commuter Pilots at Delta Units Aim to Merge Unions," Wall Street Journal, July 19, 2000, p. A10.

Davies, R.E.G., and I.E. Quastler, "George F. Pickett, Jr.: Atlantic Southeast Airlines," Commuter Airlines of the United States, Washington and London: Smithsonian Institution Press, 1995.

"Delta Strikes Deal to Acquire Atlantic Southeast," Airfinance Journal, March 1999, p. 17.

Fehr, Stephen C., "4 Dead, 25 Hurt in Plane Crash Near Atlanta; Pilot Cited Engine Trouble Before Turboprop Went Down," Washington Post, August 22, 1995, p. A3.

"Flight Attendant Hailed As Hero of Georgia Crash; 'She Was Extremely Terrific,' Passenger Says," Washington Post, August 24, 1995, p. A3.

Ho, Rodney, "Delta Feeder Line Makes Deal to Lease Jets; ASA to Absorb More Routes, Analyst Predicts," Atlanta Journal and Constitution, July 8, 1995, p. 1C.

Lenckus, Dave, and Stacy Shapiro, "Propeller Cited in Crash of ASA Plane," Business Insurance, August 28, 1995, pp. 1+.

Moorman, Robert W., "Delta Takes Charge," Air Transport World, September 1999, pp. 50-57.

------, "King of the South," Air Transport World, December 1995, p. 51.

------, "Raking in the Big Bucks," Air Transport World, October 1992, p. 107.

Ott, James, "Regional Jet Pilots Sue ALPA Over Scope," Aviation Week & Space Technology, May 14, 2001, p. 82.

------, "Top Airline Competitors Share Growth Strategy," Aviation Week & Space Technology, August 10, 1998, p. 53.

Phillips, Edward H., "Blade Failure Focus of NTSB Crash Probe," Aviation Week & Space Technology, August 28, 1995, p. 31.

------, "Engines, Propeller System Scrutinized in Atlantic Southeast Airlines Accident," Aviation Week & Space Technology, April 15, 1991, p. 32.

Preble, Cecilia, "Atlantic Southeast Expects to Double Service at Dallas/Ft. Worth Hub," Aviation Week & Space Technology, May 4, 1987, p. 41.

Thurston, Scott, "ASA Ordering More Small Jets," Atlanta Journal and Constitution, September 5, 1998, p. 1E.

------, "Delta Plans to Replace Some Flights with ASA," Atlanta Journal and Constitution, April 9, 1999, p. 3E.

------, "Hartsfield City Limits; ASA Thinks Big with New Breed of Small Jet," Atlanta Journal and Constitution, September 29, 1997, p. 4E.

------, "SEC Filing: ASA's Options Included Linking with AirTran," Atlanta Journal and Constitution, February 26, 1999, p. 1F.

------, "Wanted: Entry-Level Pilots; Small Airlines Hunt Qualified Candidates," Atlanta Journal and Constitution, August 5, 1999, p. 1E.

Ticer, Scott, and James E. Ellis, "Small Planes, Tiny Towns, Big Bucks," Business Week, August 7, 1989, p. 64.

Wayne, Leslie, "Delta to Buy Rest of Stake in Atlantic," New York Times, February 17, 1999.

"World Airline Financial Statistics--2000," Air Transport World, World Airline Report, July 2001, http://www.atwonline.com.

— Frederick C. Ingram

Not to be confused with Southeast Airlines or South East Airlines.

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Atlantic Southeast Airlines

IATA EV ICAO ASQ Callsign ACEY
Founded	1979
Ceased operations	December 31, 2011 (merged with ExpressJet)
Hubs	As Delta Connection Memphis International Airport Hartsfield-Jackson Atlanta International Airport Detroit Metropolitan Wayne County Airport As United Express O'Hare International Airport Washington-Dulles International Airport
Frequent-flyer program	SkyMiles (Delta) Mileage Plus (United)
Airport lounge	Delta Sky Club United Club
Alliance	SkyTeam as Delta Star Alliance as United Express
Fleet size	165
Destinations	128
Parent company	SkyWest, Inc.
Headquarters	College Park, Georgia, USA
Key people	Brad Holt, President/COO
Website	http://www.flyasa.com

ASA/Expressjet headquarters in College Park

Atlantic Southeast Airlines was an American airline based in the A-Tech Center in College Park, Georgia,^[1][2] flying to 144 destinations as a Delta Connection carrier and, as of February 2010, commenced service as a United Express carrier. It was a wholly owned subsidiary of SkyWest, Inc. ASA operated nearly 900 flights each day. Its main hub was at Hartsfield-Jackson Atlanta International Airport (ATL).

In November 2011, ASA and ExpressJet Airlines received a single operating certificate from the FAA and in December 2011, all flights were branded as ExpressJet.

Contents 1 History 2 Destinations 3 Fleet 3.1 Previous aircraft 4 Incidents and accidents 5 References 6 External links

History

On March 12, 1979, the company was incorporated as Atlantic Southeast Airlines, Inc. with headquarters established in the Atlanta area. June 27 saw the start of operations with one 19-passenger Twin Otter aircraft between Atlanta and Columbus, Georgia. From 1979 to 1999 the call sign for ASA was "ACEY". In 1999 there was confusion with call sign for FAA- NM based fighter unit w/ call sign "ACER". FAA insisted one change call sign- ASA was the one to change, since they had used the call sign for the least amount of time. June 27, 1999 ASA changed to call sign CAA "Candler" after founder of Coke, Asa Candler. On March 15, 2006 ASA was allowed to change its call sign back to ACEY, after the NM fighter unit defunct.^[3][4] Over the years, ASA's ICAO identifier changed from ASE to CAA to ACY to ASQ..^{[citation needed]}

The company went public when the initial stock offering was completed in 1982. On April 1, 1983 the company acquired Southeastern Airlines. About a year later, in 1984, ASA joined the Delta Connection Program as one of the first regional partners.^{[citation needed]} In 1985 Atlantic Southeast Airlines was headquartered in what is now College Park.^[2][5] After only a few years as a true regional airline, the company was named 'Regional Airline of the Year' by Air Transport World in January 1987.^{[citation needed]}

In 1995 ASA was headquartered in a building in the Atlanta City limits.^[6][7]

ASA initiated jet service with introduction of BAe 146 aircraft in 1995. Two years later, the company began using the Canadair Regional Jet (CRJ) for service from its Atlanta hub. CRJ service from the Dallas/Fort Worth hub began in 2000.

On September 8, 1998 the company was honored as one of the global aviation and aerospace industry's best managed companies by Aviation Week and Space Technology magazine.

Delta Air Lines acquired the company on March 22, 1999, increasing its stake in Atlantic Southeast Airlines from 28% to 100%, and operations began on May 11 of that year. In 2000, Comair, a Delta Connection partner, joined ASA in announcing industry's largest regional jet order. Also in 2000, ASA went international with flights to Toronto, Canada, from Atlanta.

In 2001, President Skip Barnette was named Regional Airline Executive of the year by the 2000 Commuter/Regional Airline News. Near the end of 2001, ASA carried the 2002 Olympic Flame between Miami, Florida and Mobile, Alabama, as part of Delta's sponsorship of the 2002 Olympic Winter Games in Salt Lake City.

In 2002, ASA received and began using its first Delta Connection 70-seat CRJ700 aircraft. All previous CRJs were CRJ200 models, which only offered 50 seats. Also in 2002, ASA began service to its 100th airport: Cincinnati/Northern Kentucky International Airport in Cincinnati, Ohio. By June 2003, ASA had received its 100th CRJ. In 2004, a special-edition CRJ700 was delivered to ASA to celebrate its 25th anniversary of passenger service.

On August 15, 2005, Delta announced that it had entered into an agreement to sell ASA to SkyWest, Inc. for $425 million, and on September 8, 2005, SkyWest announced that the acquisition had been completed, and that the code shares and flying would commence that night.

Shortly after the completion of the purchase by SkyWest, Inc. the decision was made to close ASA's Salt Lake City hub and transfer 12 of ASA's CRJ700s to SkyWest Airlines. Eventually only 4 of the 12 airplanes were transferred between the certificates. SkyWest Airlines also took delivery of the remainder of ASA's regional jet orders, as 5 additional CRJ700s and 17 CRJ900s.^{[citation needed]}

On June 1, 2006, ASA filed with the US Department of Transportation for an exemption to begin service from Los Angeles International Airport to nine Mexican destinations under the Delta Connection brand. This service is contingent on US as well as Mexican government approvals. ASA also announced the opening of a Los Angeles crew base on December 1, 2006, to support the expanded west coast operations. ASA began operations at its new Los Angeles focus city on December 15, 2006.

On December 20, 2006, Skywest Inc. announced that 8 Comair CRJ700 aircraft would be transferred to Atlantic Southeast Airlines and operated out of Delta's Cincinnati hub beginning in January 2007. This followed a request for proposal put out by Delta Air Lines aiming to reduce costs of its Delta Connection service.

On December 30, 2008, Delta announced that 10 CRJ900 aircraft would be allocated to Atlantic Southeast Airlines beginning in April 2009. Eight aircraft will be delivered from the factory and two already in service with Pinnacle Airlines will be transferred to ASA. As part of the fleet enhancement, 20 CRJ200 aircraft will be removed from ASA's Delta Connection Agreement beginning in June 2010.

ASA had the lowest rate of on-time performance, and the worst rate of mishandled baggage among all 19 US air carriers reporting to the US Department of Transportation for the full-year 2006.^[8] ASA's baggage handling performance improved slightly in 2007, but they once again ranked last out of all 20 reporting carriers for on-time performance.^[9] It should be noted, however, that ASA is not directly responsible for the mishandled baggage problems since ASA baggage is handled by Delta Air Lines. Under Brad Holt's new leadership, on-time performance has been steadily improving, with full recoveries in markets such as Montgomery, Alabama, where ASA was honored for exceeding the city's expectation in improving performance.

After over five years of contentious negotiations with the Air Line Pilots Association, a new three year agreement was reached in late September 2007 with ASA's 1800 pilots. ASA's Flight Attendants represented by the Association of Flight Attendants reached a contract agreement as of August 2008.

On February 12, 2009 Atlantic Southeast created aviation history by having the first all female African American crew in United States history. Flight 5202, A Bombardier CRJ700, departed Hartsfield–Jackson Atlanta International enroute to Nashville International with Captain Rachelle Jones and First Officer Stephanie Grant at the controls, and Flight Attendants Diana Galloway and Robin Rogers taking care of the passengers' needs. The return leg, Flight 5106 to Atlanta, had the same crew.^[10]

On May 21, 2010 Atlantic Southeast unveiled a new brand (top of page on right), moving away from "ASA," and a new vision.

In August 2010, SkyWest announced that it had entered into a definitive merger agreement with ExpressJet Holdings, whereby Atlantic Southeast, as SkyWest's wholly owned subsidiary, will purchase ExpressJet for $6.75 per share. Day one of the combined airlines was Friday, November 12, 2010. The combined airline will be based in Atlanta. ExpressJet currently operates as Continental Express and United Express. The airline expects to be operating under one certificate 4th quarter of 2011.^[11]

On July 13, 2011, Atlantic Southeast announced that it will change its name to "SureJet" after completion of its merger with ExpressJet Airlines. However, the reaction of employee groups at both airlines was so negative that the new name was put on hold less than 24 hours after being announced. Brand information and press releases pertaining to "SureJet" have been removed from Atlantic Southeast's public and employee websites and the company's combined identity was reconsidered. On October 14, 2011, the company announced that Atlantic Southeast's official company name will change to ExpressJet Airlines on December 31, 2011. ^[12] On November 22, 2011, both Atlantic Southeast and ExpressJet gained approval from the FAA for a single operating certificate that would allow them to operate as a single carrier under the ExpressJet name making ExpressJet the largest regional airline in the world with more than 400 aircraft.^[13]

Destinations

Further information: Delta Connection destinations#Operated by Atlantic Southeast Airlines

Further information: United Express destinations#Operated by Atlantic Southeast Airlines

Fleet

As of January 2011, the Atlantic Southeast Airlines fleet consists of the following aircraft with an average age of 8.4 years:^[14][15][16]

Aircraft	In Service	Passengers
		F	Y	Total
Bombardier CRJ200ER	112	0	50	50
Bombardier CRJ700ER	46	9	56	65
Bombardier CRJ900ER	10	12	64	76
Total	168

Most CRJ aircraft are operated as Delta Connection, though 14 CRJ-200 aircraft operate as United Express.

After the closing of the proposed merger with ExpressJet a large number of Embraer ERJ-145 aircraft (244) will join the fleet, all of these jets will be operated as United Express.^[17]

Previous aircraft

Embraer Brasilia aircraft were retired from service in 2003, and aircraft that have not been sold are in storage at Hot Springs, Arkansas. The airline operated:

• 19 ATR 72-210
• 6 British Aerospace 146-200
• de Havilland Canada DHC-6 Twin Otter
• 6 de Havilland Canada Dash 7
• 13 Embraer EMB 110 Bandeirante^[18]
• 3 Embraer EMB 120ER Brasilia
• 12 Embraer EMB 120RT Brasilia
• 10 Shorts 360^[18][19]

Incidents and accidents

• Flight 2366 (Lawton, Oklahoma, May 24, 1988; Crashed due to engine failure on take-off)^[20]
• Flight 2254 (Gadsden, Alabama, April 9, 1990; collided with a Civil Air Patrol Cessna 172 after takeoff from Northeast Alabama Regional Airport)
• Flight 2311 (Brunswick, Georgia, April 5, 1991; killed 23, including former U.S. Senator John Tower and astronaut Sonny Carter)
• Flight 529 (near Carrollton, Georgia, August 21, 1995)
• Flight 5058 (Baton Rouge Metropolitan Airport), September 2, 2011; Canadair CRJ-200 N875AS landed with the port main undercarriage retracted. There were no injuries amongst the 50 passengers and three crew on board.^[21]

References

1. ^ "Contact." Atlantic Southeast Airlines. Retrieved on May 19, 2009. "Atlantic Southeast Airlines A-Tech Center 990 Toffie Terrace Atlanta, GA 30354-1363"
2. ^ ^{a b} "City Maps." (Archive) City of College Park. Retrieved on May 25, 2009.
3. ^ ASA Silver & Soaring Go Publications 2004
4. ^ ASA History
5. ^ "World Airline Directory." Flight International. March 30, 1985. 56." Retrieved on June 17, 2009.
6. ^ "Atlanta 1990 Tiger Map." U.S. Census Bureau. Retrieved on July 25, 2009.
7. ^ "World Airline Directory." Flight International. March 22–28, 1995. 58. Retrieved on July 25, 2009.
8. ^ Air Travel Consumer Report - February 2007
9. ^ Air Travel Consumer Report - February 2008
10. ^ Airline makes history with first all-black female flight crew
11. ^ http://www.skywest.com/skywinc/invest/investor_releases/XJTAnnounceFinal8.2.10.pdf
12. ^ http://www.ajc.com/business/atlanta-regional-airline-backtracks-1017139.html
13. ^ http://www.sltrib.com/sltrib/money/52970227-79/skywest-expressjet-airlines-carrier.html.csp
14. ^ http://www.ch-aviation.ch/aircraft.php?search=set&airline=EV&al_op=1 Atlantic Southeast Airlines fleet list at ch-aviation.ch. Retrieved 2011-01-14.
15. ^ Atlantic Southeast Airlines fleet list at planespotters.net
16. ^ Atlantic southeast Airlines fleet list at airfleets.net
17. ^ [1]
18. ^ ^{a b} [2]
19. ^ Atlantic Southeast Airlines
20. ^ http://query.nytimes.com/gst/fullpage.html?res=940DE7DD1438F936A15756C0A96E948260
21. ^ Hradecky, Simon. "Accident: Atlantic Southeast CRJ2 at Baton Rouge on Sep 1st 2011, left main gear up landing". The Aviation Herald. http://avherald.com/h?article=44248402&opt=0. Retrieved 2 September 2011. 

External links

	Atlanta portal
	Companies portal
	Aviation portal

• Atlantic Southeast Airlines
• Interactive Route Map
• ASA MEC Negotiations Website
• Vintage ASA photos and route map

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