Air Transport World

Expressjet: America)(services ExpressJet Airlines Inc.)(Brief article)

The Houston-based carrier provides service exclusively to Continental Airlines at hubs in Houston, Newark and Cleveland but the relationship has soured, with CO seeking to take back 69 ERJs it subleases to its former subsidiary and ExpressJet declining to return them even though they no longer will be able fly under the CO code. The disagreement hinged on money, with the Major wanting its partner to accept a lower margin under its "fixed fee per block hour" agreement. ExpressJet may send some of the surplus aircraft to Europe to be operated by 49%-owned affiliate ExpressJet Europe, which is seeking to export the capacity purchase agreement model to the continent. …

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