ExpressJet Signs Agreement With United
February 17 2010 - 5:48PM
PR Newswire (US)
HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- ExpressJet Holdings,
Inc. (NYSE:XJT), parent company of regional and charter airline
operator, ExpressJet Airlines, Inc., today announced that it signed
an agreement with United Airlines covering 22 ERJ-145 aircraft for
United Express service effective December 1, 2009. 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. 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 on May 1, 2010. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO)
ExpressJet ended January 2010 with ten aircraft in operation for
United Express. ExpressJet expects the following monthly fleet plan
for United Express for the first-half of 2010. Month Aircraft Added
Total Operating as United Express ----- --------------
--------------------------------- February 6 16 -------- --- ---
March 6 22 ----- --- --- April 0 22 ----- --- --- May 10 32 --- ---
--- June 0 32 ---- --- --- The agreement has an initial term of
three years (expiring April 30, 2013) for 11 aircraft and two years
(expiring April 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. From May 2010 through December
2010, ExpressJet will fly up to 10 additional aircraft for United
Express in the current ExpressJet livery. 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.
United must notify ExpressJet of its intention to renew for the
initial renewal period no later than June 15th for the first six
supplemental aircraft and August 15th for the remaining four
additional aircraft. 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. If the renewal option is not exercised, the ten
aircraft will be removed from service and placed into the Corporate
Aviation (charter) operation as follows: Remaining Total Operating
as Renewal Date Potential Aircraft Removed United Express
------------ --------------------------
---------------------------- October 15 3 29 ------------ --- ---
November 15 3 26 ----------- --- --- December 15 4 22 -----------
--- --- ExpressJet expects that full-year block hours within its
contract flying segment should increase between 10% and 15% as a
result of this flying for United, and that run-rate expectations
will be established during third quarter 2010 after all airplanes
are in place and start-up costs, including paint, interior
modifications and aircraft positioning, are complete. Future
operating statistics will be categorized as contract for reporting
purposes and revenues associated with United will be recorded as
passenger revenues. As part of the agreement, on February 17, 2010,
ExpressJet issued a warrant to United for the purchase of 2.7
million shares of common stock with an exercise price of $0.01 per
share of common stock. About ExpressJet ExpressJet Holdings
operates several divisions designed to leverage the management
experience, efficiencies and economies of scale present in its
subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet
Services, LLC. ExpressJet Airlines serves 130 scheduled
destinations in North America and the Caribbean with approximately
1,100 departures per day. Operations include a capacity purchase
agreement for Continental and United as well as providing clients
customized 41-seat and 50-seat charter options
(http://www.expressjet.com/charter); and supplying third-party
aviation and ground handling services. For more information, visit
http://www.expressjet.com/.
http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO
http://photoarchive.ap.org/ DATASOURCE: ExpressJet Holdings, Inc.
CONTACT: Investors, Kristy Nicholas of ExpressJet Holdings, Inc.,
+1-832-353-1409, or General, +1-832-353-3333 Web Site:
http://www.expressjet.com/
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