The Associated Press
and The Cincinnati Enquirer

Delta Air Lines will end its contract in October with regional carrier Atlantic Coast Airlines to fly jets as Delta Connection at hubs in Greater Cincinnati and Boston, the airlines said Tuesday.

Atlantic Coast has operated a fleet of 30 jets for Atlanta-based Delta Connection Inc. nationally since 1999.

To fill the service gap, Delta is holding discussions with a number of carriers - including Skyway Airlines, a regional arm of Milwaukee-based Midwest Airlines.

Delta has been adding flights on other Delta Connection carriers at Cincinnati/Northern Kentucky International Airport since 2000, when Comair was the lone Delta regional carrier here.

The Erlanger-based subsidiary was shut out this year when Delta assigned 45 new jets to its affiliates, the first time in Comair's 26-year history that the carrier won't expand its fleet. The decision could slow growth for Comair, which has some of the highest labor costs in the regional industry.

The local airport is Delta's second-largest hub.

Atlantic Coast, the nation's 17th-largest airline in terms of passengers, is revamping itself as an independent, low-fare airline that will begin flying in June as Independence Air. It plans to operate from its hub at Dulles International Airport, near Washington,

On Monday, Atlantic Coast's largest partner, United Airlines, announced plans to replace Atlantic Coast with a trio of other regional carriers.

To prepare for the October termination with Delta, aircraft flown by Atlantic Coast will move from Boston and New York's Kennedy airport to Cincinnati. Additionally, Delta Connection carrier Comair will move aircraft to the Northeast markets to replace the routes currently operated by Atlantic.

The moves are not expected to affect employment at Comair, a spokesman said.

Atlantic Coast president Kerry Skeen said Delta's decision was expected and that Atlantic Coast no longer wants to focus on "fee-per-departure relationships that rely on other companies' brands and business models."