Fate of ExpressJet's leased RJs still unknown

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Fate of ExpressJet's leased RJs still unknown - Air Transport
Intelligence News

ExpressJet has still to decide if it will retain any of the 69 Embraer
ERJ-145s to be lost under new contractual terms stipulated by the
carrier’s only contractor Continental Airlines.


Continental in December said it will withdraw the aircraft (44 ERJ-145XRs
and 25 ERJ-145LRs) from its capacity purchase agreement with ExpressJet
at the end of 2006. The regional carrier has until September to decide if
it wants to operate the aircraft on another feeder contract, sublease the
Continental-owned aircraft, or return them to their owner.


In a conference call today to discuss ExpressJet’s 2005 financial
results, president and CEO Jim Ream said ExpressJet is “working as hard
as we can” to determine which option will be best for the company.


ExpressJet’s feeder contract with Continental again proved profitable in
2005. For the year ending December 31 2005, ExpressJet reported a net
income of $98 million on operating revenues of $1.56 billion and
operating expenses of $1.41 billion, 3.7% and 8% year-on-year increases,
respectively.