The airline was established and started operations on December 15, 1989, and had been in a marketing agreement with United Airlines since its inception.[1] In 1999 it established Atlantic Coast Jet to operate as a Delta Connection carrier, but this was later reintegrated.
United Airlines entered bankruptcy protection in December 2002. At that time United Airlines contracted a consulting firm, Bain, to renegotiate its regional partners contracts. Atlantic Coast Airlines employees and management went through a significant cost reduction program to remain competitive as a United Express carrier. Presented with overwhelming competition from other regional airlines Atlantic Coast Airlines and United Airlines were unable to negotiate a mutual agreement. At that time Atlantic Coast Airlines continued to honor its 10-year contract with United Airlines. Expecting that United would be unable to honor that contract, Atlantic Coast Airlines developed an alternate business plan.
After announcing plans to part with United Airlines, Atlantic Coast Airlines' significant cash position made it a prime target for a takeover attempt. Mesa Air Group launched an attempt at a hostile takeover in the summer of 2003, engaging in what some allege were significant U.S. Securities and Exchange Commission violations. At the same time the employees of Atlantic Coast Airlines organized a grass roots effort to avert the takeover attempt. Within a few months the stock purchase plan was removed by Mesa.
On November 19, 2003, Atlantic Coast Airlines announced that it would become a low-cost carrier under the name of Independence Air. Its status as a United Express carrier ended on August 4, 2004, and its status as a Delta Connection carrier ended November 2, 2004. Operations as Independence Air began on June 16, 2004. On January 5, 2006, Independence Air ceased operations.
^"Company Information." Atlantic Coast Airlines. Retrieved on September 25, 2009. "45200 Business Court Dulles, Virginia 20166"
^"We Listen." Atlantic Coast Airlines. October 4, 2000. Retrieved on January 31, 2011. "Atlantic Coast Airlines Holdings, Inc., 12001 Sunrise Valley Drive, Reston, VA 20191"
^Standard & Poor's Register of Corporations, Directors and Executives, Volume 2. Standard & Poor's Corp., 1998. 1012. Retrieved on January 31, 2011. "Atlantic Coast Airlines Inc., One Export Dr.. Sterling, VA 20164"