Atlantic Coast Pushes Ahead With Plans to Become Low-Cost Carrier

Updated from 12:14 p.m. EDT

Atlantic Coast Airlines (ACAI Quote) has picked an appropriate name for the low-cost service it plans to morph into next year: Independence Air.

The name was announced on Wednesday at the carrier's Washington D.C. hub, and it's fitting because ACA needs to fight off an unsolicited takeover bid by Mesa Airlines (MESA Quote) in order to turn itself into a low-cost airline. The announcement follows news late Tuesday that ACA plans to purchase up to 25 Airbus planes, which will be the backbone of Independence's service.

"We are very excited that Independence Air at Washington Dulles will create America's largest low-fare hub in terms of total departures -- in the fifth-largest air travel market in the U.S.," said Kerry Skeen, ACA chairman and CEO, in a statement. ...