=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/11/15/f= inancial1558EST0224.DTL ---------------------------------------------------------------------- Friday, November 15, 2002 (AP) Atlantic Coast stock skids on worries of exposure to UAL (11-15) 14:15 PST (AP) -- NEW YORK (Dow Jones/AP) -- The stock of Atlantic Coast Airlines Holdings Inc. dropped sharply Friday on concerns that UAL Corp., the parent company of United Airlines, could declare bankruptcy. Dulles, Va.-based Atlantic Coast is a regional carrier that operates und= er the United Express banner through a code-sharing agreement with United Airlines. Credit Suisse First Boston lowered its investment rating on Atlantic Coast's stock, noting that the carrier derives the bulk of its capacity from Chicago-based UAL. Shares of Atlantic Coast Airlines Friday dropped $2.97, or 20 percent, to close at $12.26 on the Nasdaq Stock Market. CSFB analyst James Higgins cut his rating to "underperform" from "outperform." "UAL generates about 85 percent of (Atlantic Coast's) capacity, with the more stable Delta generating the remainder -- (Atlantic Coast's) exposure is significant," Higgins said in a research note. Higgins said Atlantic Coast's "fundamentals are strong and the industry demand for RJs (regional jets) remains robust. However, fears surrounding a UAL bankruptcy are likely to rule for the foreseeable future." UAL management is not pushing for any more regional jet expansion, so there will be no capacity growth from UAL until after the 2004 regional jet deliveries, Higgins said, adding, that will hurt Atlantic Coast's growth. A proposal with UAL's pilots union also limits the number of regional je= ts in the airline's route network to 243, Higgins said. =20 ---------------------------------------------------------------------- Copyright 2002 AP