Air Transport World

ExpressJet forges new Continental agreement.(RegionalNews)(ExpressJet Airlines Inc.)(Continental Airlines Inc.)(Brief article)

ExpressJet signed a new seven-year capacity purchase agreement with Continental Airlines that includes lower rates comparable to those charged by other regional providers and effectively ended an April bid by SkyWest Inc. to acquire ExpressJet.

Under the new contract, effective July 1, ExpressJet will operate a minimum of 205 aircraft for CO the first year and a minimum of 190 in following years. It is based on fixed block hr. rates that include various pass-through expenses such as aircraft rent, fuel, airport ground handling and landing fees. CO gave ExpressJet the right to return to it 39 50-seat ERJs that currently are used for non-CO contract flying. CO said it will add the 39 jets to the new agreement and remove 30 37-seat RJs currently operated on its behalf by ExpressJet. …

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