ExpressJet Airlines, a United Express regional carrier, announced Houston’s George Bush Intercontinental Airport (IAH) as the first flight crew base for its new Embraer E175 fleet.
ExpressJet is growing with 25 new E175s in 2019 and will hire more than 600 pilots this year alone. ExpressJet pilots enjoy top-tier compensation, work rules and quality of life as well as a direct path to a flying career at United Airlines through the United Career Path Program. ExpressJet also recently increased its pilot signing bonus to $22,000, with an additional $5,000 for an eligible type rating.
SkyWest, Inc. today announced that it is has entered into definitive agreements to sell ExpressJet Airlines, Inc. to ManaAir, LLC, a company in which United Airlines owns a minority interest.
The transaction is expected to close in early 2019, subject to customary closing conditions.
Consideration for the transaction includes approximately $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizable value to SkyWest of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise.
As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
ExpressJet Airlines, Inc. operates a fleet of Bombardier and Embraer regional jet aircraft to more than 110 destinations in the U.S., Canada and Mexico.
ExpressJet has nearly 70 years of flying history and was formed through multiple airline mergers and transformations that occurred during that time. Today, ExpressJet is headquartered in Atlanta and operates as American Eagle and United Express.
Starting in early 2019, ExpressJet will begin flying exclusively as United Express, with flight operations centered out of Houston, Chicago, Cleveland and Newark. ExpressJet currently flies the Bombardier CRJ200, CRJ700 and Embraer ERJ145 for United Express.
United Airlines will add Newark – Presque Isle, ME service in July. Starting on July 1, 2018, ExpressJet Airlines will operate daily United Express service. The new route will be operated with Embraer ERJ 145 regional jets according to Airline Route.
Copyright Photo: United Express-ExpressJet Airlines Embraer ERJ 145LR (EMB-145LR) N13956 (msn 145078) IAD (Brian McDonough). Image: 908396.
According to Reuters, United Continental Holdings, Inc. (United Airlines) is considering acquiring an ownership stake in ExpressJet Airlines in order to improve its supply of pilots. Negotiations are reportedly continuing with owner SkyWest. United does not own a regional carrier outright, unlike its competitors.
ExpressJet operates as an United Express carrier. However it also operates for American and is winding down its relationship with Delta.
Previously on August 9, 2017, ExpressJet Airlines, a wholly-owned subsidiary of SkyWest, Inc., announced the initiation of its defined long-term strategy:
Long-term agreement secured with United Airlines. As part of this plan, ExpressJet has secured a new, five-year extension of its United Airlines ERJ 145 contract, effective January 1, 2018 through December 31, 2022. The agreement enhances ExpressJet’s United partnership and provides long-term stability to its model. It also provides ExpressJet pilots with continued access to United’s Career Pathway Program. Financial terms of the agreement were not disclosed.
Early termination of Delta CPA. Additionally, ExpressJet and Delta Air Lines mutually agreed to initiate the wind-down of its remaining dual-class flying agreement under the Delta Connection brand, allowing ExpressJet opportunities to place aircraft with other partners. The agreement, which includes 28 CRJ900s and 33 CRJ700s, was previously scheduled to expire beginning in 2019. The aircraft financed by Delta, including all CRJ900s, will be returned to Delta beginning in fourth quarter 2017; ExpressJet expects to transition other aircraft previously operated under its Delta agreement to other major partners throughout 2018.
Agreement with American for eight additional CRJ700s. As part of this realignment, ExpressJet has secured an agreement with American Airlines to transition eight additional CRJ700s to its American Eagle operation. That transition is expected to take place during second quarter 2018.