Atlantic Coast Airlines employees and management went through a significant cost reduction program to remain competitive as a United Express carrier.

Expecting that United would be unable to honor that contract, Atlantic Coast Airlines developed an alternate business plan.

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.

On November 19, 2003, Atlantic Coast Airlines announced that it would become a low-cost carrier under the name of Independence Air.