Looks like at least someone in Wall Street likes the idea of ACA going it alone.
Wall Street Finds Credibility In Facets Of Independence Air
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At least one Wall Street investment firm is warming to some parts of the concept for Independence Air, Atlantic Coast Airlines' (ACA) planned low-fare carrier, reversing some previous skepticism of ACA's exit from the regional airline business.
UBS analyst Robert Ashcroft wrote in his latest research report that Independence "probably works with minor tweaks," and ACA planners are "smart enough and should have time enough to get it right."
He pointed out that even though Independence would be built on a hub-and-spoke system, in actuality it would operate on a rolling basis, with planes being turned around and sent back out in the network. Although that model dims connection opportunities, Ashcroft notes it brings labor and asset productivity close to low-cost carrier levels. He explained Independence's high frequency would also create a lot of natural connections.
Having a base at Dulles is deemed the most "uncontroversial" part of ACA's plan, Ashcroft said: "We've never disputed that an LCC could thrive at Dulles with the right fleet." ACA has drawn a lot of criticism for attempting to use its 87 RJs in low-cost structure, and while Ashcroft said that number is higher than ideal, "we no longer think it can't work." </font>