Category Archives: ExpressJet Airlines

ExpressJet Airlines’ pilots now are “optimistic” for the sale to SkyWest

ExpressJet Airlines’ (Houston) pilots, who are represented by the Air Line Pilots Association, Intโ€™l (ALPA), met this week to determine their position on the proposed sale of ExpressJet Airlines to SkyWest Holdings, Inc. (St. George) and the planned subsequent merger of the airline with Atlantic Southeast Airlines (ASA) (Atlanta), which was announced on August 4, 2010. The history of airline mergers has shown that pilot support is critical to an airlineโ€™s ability to fully realize the financial and operational gains from a merger.

After the August 4, 2010 announcement, the pilotsโ€™ union publicly stated a number of requirements that must be met for pilot support of the transaction:

– the transaction must result in a profitable airline that provides long-term stability and progressive career potential for our pilots;

– the transaction must honor the scope and successorship provisions of our collective bargaining agreement;

– management must commit to negotiating a joint collective bargaining agreement that benefits all pilots; and

– there must be a fair and equitable seniority list integration.

The union is now optimistic that the needs of the pilots will be protected.

Copyright Photo: Bruce Drum. Embraer ERJ 145XR (EMB-145XR) N13124 (msn 145689) operating as Continental Express prepares to land at Minneapolis/St. Paul.

ExpressJet loses $18.6 million in the 2Q

ExpressJet Holdings, Inc. (Houston), parent company of regional and charter airline operator, ExpressJet Airlines (Houston) reported a second quarter loss of $5 million or $0.27 per diluted share excluding special items primarily related to non-cash adjustments of deferred tax assets and impairment of fixed assets. Including special items, ExpressJet’s loss totaled $18.6 million or $0.99 per diluted share for second quarter 2010.

For the six months ended June 30, ExpressJet’s loss excluding special items totaled $18.2 million or $1.00 per diluted share. Including special items, ExpressJet reported a loss of $34.7 million or $1.92 per diluted share for the six months ended June 30, 2010.

Subsequent to quarter-end, ExpressJet announced that it signed a definitive merger agreement with SkyWest, Inc. (Nasdaq:SKYW – News) whereby SkyWest, Inc. will acquire all of the outstanding common shares of ExpressJet for $6.75 per share in cash subject to the conditions of the definitive merger agreement. SkyWest, Inc. advised that its intention is that ExpressJet will be merged with its wholly-owned subsidiary, Atlantic Southeast Airlines following the closing of the transaction and receipt of all required regulatory approvals.

Copyright Photo: Bruce Drum. ExpressJet’s Embraer ERJ 145LR N15980 (msn 145202) taxies to the active runway at Charlotte.

SkyWest to acquire ExpressJet, to be merged into Atlantic Southeast

SkyWest, Inc. (St. George) announced today (August 4) that it has entered into a definitive merger agreement with ExpressJet Holdings, Inc. (ExpressJet Airlines) (Houston), whereby Atlantic Southeast Airlines, Inc. (Atlanta), SkyWest’s wholly-owned subsidiary will acquire all of the outstanding shares of common stock of ExpressJet Holdings, Inc. (“ExpressJet”) for $6.75 per share in cash, representing a net purchase price of approximately $133 million after giving effect for shares already owned by Atlantic Southeast. ExpressJet’s primary operating entity is ExpressJet Airlines, Inc. The definitive merger agreement has been unanimously approved by the SkyWest and ExpressJet boards of directors. The transaction is not subject to financing conditions, but is subject to receipt of certain regulatory approvals, approval of ExpressJet stockholders and other customary conditions. The parties currently anticipate that the transaction will close during the fourth quarter of 2010.

Atlantic Southeast Airlines (ASA) (Atlanta) has negotiated the principal terms of a new, long-term, capacity purchase agreement with Continental Airlines, Inc. (“Continental”), which is intended to become effective upon consummation of the ExpressJet merger. Upon completion of the merger, ExpressJet will become a wholly-owned subsidiary of Atlantic Southeast, with the intention of combining the operations of ExpressJet Airlines and Atlantic Southeast, subject to receipt of necessary regulatory approvals, and utilizing Atlantic Southeast’s existing facilities in Atlanta, Georgia as the operating headquarters of the combined company. The parties anticipate that both airlines will continue to operate under separate airline operating certificates until the regulatory process can be completed for combining the airlines under a single operating certificate. Pending receipt of that single operating certificate, Atlantic Southeast intends to transition certain existing ExpressJet support functions to Atlantic Southeast and SkyWest upon consummation of the transaction. Atlantic Southeast and SkyWest believe that ExpressJet employees and passengers will benefit from the merger by building greater efficiencies of scale and capitalizing on growth opportunities.

Copyright Photo: Michael B. Ing. The ExpressJet brand was being retained for its charter division but will now gradually disappear with the upcoming merger. One surprising factor is the diverse fleet differences between ExpressJet (an Embraer operator) and Atlantic Southeast (a Bombardier operator). Embraer ERJ 145XR N11194 (msn 14500940) arrives at Ontario, CA.

Continental Express starts Houston-Tuxtla Gutierrez flights

Continental Airlines (Houston-Bush Intercontinental) yesterday (June 9) began twice-weekly flights between its Houston hub at Bush Intercontinental Airport and Tuxtla Gutierrez, Chiapas, Mexico, the airline’s 30th Mexican destination.

The new flight, operated as a Continental Express service by ExpressJet Airlines (Houston), departs Houston at 6:15 p.m. (1815) on Wednesdays and Saturdays, arriving in Tuxtla Gutierrez at 9:20 p.m. (2120). The return flight departs Tuxtla Gutierrez at 8:30 a.m. (0830) on Thursdays and Sundays and arrives in Houston at 11:20 a.m. (1120). ExpressJet will utilize the 50-seat Embraer ERJ 145XR regional jets for the new service.

Copyright Photo: Bruce Drum. ExpressJet’s Embraer ERJ 145XR (EMB-145XR) N13124 (msn 145689) prepares to land at Minneapolis/St. Paul.

ExpressJet starts Branson AirExpress from Branson to six cities

Copyright Photo: Michael B. Ing.

ExpressJet Airlines (Houston) yesterday (May 17) started its “airline within an airline” with new Embraer ERJ 145 regional jet service called Branson AirExpress. Branson AirExpress, a public charter service operated by ExpressJet Airlines, began service to six cities yesterday: Austin and Houston, TX; Des Moines, IA; Shreveport, LA, Nashville, TN, and Gulfport/Biloxi, MS.

A seventh destination – Terre Haute, IN – was originally slated but was cancelled due to low prebooking numbers.ย ย All flights are operated by ExpressJet-branded aircraft.

Here is a link to the website:

http://www.bransonairexpress.com/

ExpressJet Holdings loses $16.1 million in the first quarter

ExpressJet Holdings, Inc. (Houston-Bush Intercontinental), parent company of regional and charter airline operator, ExpressJet Airlines, Inc., today reported a first quarter loss of $16.1 million or $0.93 per share. Excluding special items, ExpressJet’s loss totaled $12.7 million or $0.73 per share.

Under its capacity purchase agreement with Continental Airlines, ExpressJet flew 162,823 block hours using an average of 208 aircraft. The year-over-year improvement in block hours led to ExpressJet utilizing each aircraft an average of 8 hours and 41 minutes per day-a 6.2% year-over-year improvement. In first quarter 2010, ExpressJet generated 1.9 million revenue passenger miles on 2.5 million available seat miles, producing a load factor of 76% within its Continental Express operation.

ExpressJet continued the expansion phase of its United Express operation, where it flew an average of 16 aircraft during the first quarter. The United Express operation produced 14,432 block hours or average daily utilization of 9 hours and 54 minutes per day. Within the United Express operation, ExpressJet flew 197,244 available seat miles, generating 138,832 revenue passenger miles and a load factor of 70.4%. Currently, ExpressJet operates 22 aircraft in its United Express operation and expects to add 10 additional aircraft on May 1, 2010.

ExpressJet flew 3,027 block hours during the first quarter with an average of 20 aircraft, 6.3% less than first quarter 2009 when 30 aircraft were allocated to ExpressJet’s Corporate Aviation (charter) fleet. With the addition of United Express flying, ExpressJet expects to operate only six 50-seat aircraft within the Corporate Aviation (charter) division for the remainder of 2010. ExpressJet expects the resizing of the Corporate Aviation (charter) fleet will enhance the revenue production per charter aircraft on a go-forward basis.

ExpressJet operated a total of 244 aircraft during first quarter and expects its 2010 fleet plan from May to December 2010 to consist of 244 fifty-seat aircraft allocated as follows:

206 aircraft flying as Continental Express;
32 aircraft flying as United Express; and
6 aircraft flying within Corporate Aviation (charter).

Copyright Photo: Jeffrey S. DeVore. Embraer ERJ 145LR (EMB-145LR) N11544 (msn 145557) has now been painted in full United Express colors.

United to add flights at Chicago and Los Angeles

United Airlines (Chicago) announced today (April 20) new and additional service to and from the airlineโ€™s Chicago and Los Angeles hubs.

Beginning June 9, 2010, United will offer an additional daily roundtrip flight between Chicago Oโ€™Hare International Airport and New York LaGuardia, using a 120-seat Airbus A319 aircraft. The additional eastbound flight will depart at 8:30 a.m. (0830) and arrive in New York at 11:42 a.m. (1142). The westbound flight will depart at 12:30 p.m. (1230) and arrive in Chicago at 2:04 p.m. (1404).

Beginning August 24, 2010, the three United Express flights operating between Chicago and New York LaGuardia will be replaced with United-operated service. With this change, United will operate as many as 18 flights a day between the two airports.

Also on August 24, 2010, United will begin new daily roundtrip service between Houston and Los Angeles. United Express carrier SkyWest Airlines will operate the service using 66-seat Bombardier CRJ700 Regional Jet aircraft. The eastbound flight will depart at 11:40 a.m. (1140) and arrive at George Bush Intercontinental Airport in Houston at 4:53 p.m. (1653). The westbound flight will depart at 5:40 p.m. (174) and arrive in Los Angeles at 7:15 p.m. (1915).

On November 4, 2010, United will add daily roundtrip service to the existing weekend-only service between Chicago and Pensacola. United Express carrier ExpressJet Airlines will operate the service using 50-seat Embraer ERJ 145 regional jet aircraft. The eastbound flight will depart at 1:10 p.m. (1310) and arrive at Pensacola Regional Airport at 3:29 p.m. (1529). The westbound flight will depart at 4 p.m. (1600) and arrive in Chicago at 6:18 p.m. (1818). These new flights will complement existing twice-daily service between Pensacola and Washington Dulles.

Copyright Photo: Michael B. Ing. SkyWest Airlines’ Bombardier CRJ700 (CL-600-2C10) N795SK (msn 10299) arrives at the Los Angeles hub.

Continental Express to add Houston-Tuxtla Gutierrez on June 9

Continental Airlines (Houston) today announced that beginningย June 9, 2010, it will offer twice-weekly flights between itsย Houstonย hub at Bush Intercontinental Airport andย Tuxtla Gutierrez, Chiapas, Mexico, the airline’s 30th Mexican destination, subject to government approval. Continental serves more destinations inMexicoย from the U.S. than any other airline.

The new flight, operated as Continental Express by ExpressJet Airlines, departsย Houstonย atย 6:15 p.m. on Wednesday and Saturday and arrives inย Tuxtla Gutierrezย atย 9:20 p.m.ย ย The return flight departsย Tuxtla Gutierrezย atย 8:30 a.m. on Thursday and Sundayย and arrives inย Houstonย atย 11:20 a.m.ย ย Flights are timed for convenient connections to other flights in Continental’s network across the U.S. and toย Canadaย andย Europe.

ExpressJet Airlines will utilize the 50-seat Embraer ERJ 145XR regional jet for the new service.

ExpressJet reports 4Q and 2009 financial results

Please click on the AG icon for a direct link to the ExpressJet photo gallery.

ExpressJet Holdings, Inc. (Houston), parent company of ExpressJet Airlines, Inc., reported fourth quarter net income ofย $30.2 million. ย These results reflect a one-time income tax benefit ofย $47.6 million, including aย $17.1 millionย cash receivable associated with recent tax legislation, and an approximateย $30 millionย non-cash adjustment of deferred tax assets.

For the full-year, ExpressJet reported a net loss ofย $3.3 million. ย Excluding special items, ExpressJet reported aย $1.6 millionย net loss for the full-year 2009.

ExpressJet operated a total of 244 aircraft during 2009. ย ExpressJet expects its 2010 fleet to equal 244 fifty-seat aircraft allocated as follows:

  • 206 aircraft flying as Continental Express;
  • 22 aircraft flying as United Express, increasing to as many as 32 aircraft from May toย December 2010; and
  • 16 aircraft operating within the Corporate Aviation (charter) division, decreasing to as few as six aircraft from May toย December 2010.

ExpressJet signs United Express agreement with United, increases to 32 ERJ 145s

ExpressJet Holdings, Inc. (Houston), parent company of regional and charter airline operator, ExpressJet Airlines, Inc., yesterday (February 17) announced that it signed an agreement with United Airlines covering 22 Embraer ERJ 145 regional jet aircraft for United Express service effectiveย December 1, 2009. ย This signed agreement finalizes the previously announced successful bid by ExpressJet to replace flying done by other United Express partner carriers whose contracts have expired. ย An additional 10 ERJ 145 aircraft, sourced from our Corporate Aviation (charter) fleet, were added through an amendment to the agreement and will begin operating for United Express onย May 1, 2010.

ExpressJet endedย January 2010ย with ten aircraft in operation for United Express. ExpressJet expects the following monthly fleet plan for United Express for the first-half of 2010.

The agreement has an initial term of three years (expiringย April 30, 2013) for 11 aircraft and two years (expiringApril 30, 2012) for the remaining 11 aircraft, and will have a renewal option, at United’s election, for additional periods up to a total term of five years.

Fromย May 2010ย throughย December 2010, ExpressJet will fly up to 10 additional aircraft for United Express in the current ExpressJet livery. ย United will have the option to renew the operation of these aircraft for up to four additional periods of not less than thirty days per renewal period. ย United must notify ExpressJet of its intention to renew for the initial renewal period no later thanย June 15thย for the first six supplemental aircraft andAugust 15thย for the remaining four additional aircraft. ย In an effort to provide United with increased flexibility, the amendment to the agreement allows United to extend the renewal deadline for each aircraft upon certain terms and conditions. ย If the renewal option is not exercised, the ten aircraft will be removed from service and placed into the Corporate Aviation (charter) operation.