HOUSTON, June 7 /PRNewswire-FirstCall/ -- ExpressJet
Holdings, Inc. (NYSE: XJT), parent company of regional and charter
airline operator, ExpressJet Airlines, Inc., today announced the
details of the first step of its multi-phase Operation: Green
Light. ExpressJet expects the initial step of this Plan to
provide up to $40 million in run-rate
cost savings.
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"The Board presented me with the challenge of returning
ExpressJet to sustained profitability when I joined the company in
April," said Tom Hanley, President
and Chief Executive Officer. "After a thorough review of
ExpressJet's cost structure, the ExpressJet team is launching our
Operation: Green Light Plan. We believe this Plan will
allow the Company to move forward and all ExpressJet stakeholders
to benefit from a company that possesses a solid, financial
foundation and sustainable profits."
The Plan was developed in coordination with ExpressJet's
advisors, including Goldman Sachs & Co. and Seabury Securities
LLC, an investment banking and consulting firm. The key
elements of the Plan's initial phase include:
- Reducing corporate overhead, including implementation of a
hiring freeze for all current management openings;
- Increasing the Company's focus on "safety at work" to reduce
worker's compensation claims and lower restricted cash
requirements;
- Collecting revenue-related amounts currently owed under
third-party contracts;
- Improving crew planning procedures to increase productivity and
lower related travel expenses; and
- Increasing maintenance productivity while lowering vendor
costs.
ExpressJet began implementing the Operation: Green Light
during second quarter 2010 and expects to achieve up to
$40 million in run-rate savings by
2012. As ExpressJet completes the implementation of the
Plan's initial step, it will begin detailing the next phase of cost
savings opportunities, which will include a competitive review of
all salaries and benefits. Hanley added, "The first phase of
the Plan focuses on initiatives that will stem the losses
ExpressJet incurred in the recent quarters. The next phase of
the Plan will be designed to provide ExpressJet with a competitive
cost structure and a stronger balance sheet to support growth and
new, profitable opportunities."
ExpressJet will provide an overview of its Operation:
Green Light at the 2010 Bank of America Merrill Lynch Global
Transportation Conference on June 16,
2010 at 8:45 am Eastern.
A detailed presentation of the plan, as well as a webcast of
remarks will be available on www.expressjet.com – Investors.
Both items will be archived until July
2, 2010.
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
134 scheduled destinations in North
America and the Caribbean
with approximately 1,200 departures per day. Operations
include capacity purchase agreements for United and Continental as
well as providing clients customized 50-seat charter options; and
supplying third-party aviation and ground handling services.
For more information, visit www.expressjet.com.
This release contains forward-looking statements. Statements
including words such as "believes," "intends," "plans,"
"anticipates, "estimates," "projects," "expects" or similar
expressions represent forward-looking statements that are based on
the Company's expectations in light of facts known by management on
the date of this release. Specifically, statements regarding
ExpressJet's future results of operations, operating costs,
business prospects, growth and capital expenditures, including
plans with respect to its fleet, are forward-looking statements.
The forward-looking statements in this release reflect the
Company's plans, assumptions and expectations about future events
and are subject to uncertainties, many of which are outside
ExpressJet's control. Important factors that could cause
actual results to differ materially from the expectations expressed
or implied in the forward-looking statements include known and
unknown risks. The five key areas of the known risks that could
significantly impact the company's revenues, operating results and
capacity include: operations under the Company's capacity purchase
agreements may no longer be profitable; charter operations and
other aviation services may affect ExpressJet's ability to operate
profitably; rising costs, a global, economic recession and the
highly competitive nature of the airline industry; the profile of
the Company's current shareholders; and regulations, including
listing regulations for publicly traded companies, and other
factors. For further discussions of these risks and others, please
see the sections entitled "Risk Factors", as well as other
sections, of ExpressJet's filings with the Securities and Exchange
Commission. The events described in the forward-looking statements
might not occur or might occur to a materially different extent
than described in this release. ExpressJet undertakes no duty to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE ExpressJet Holdings, Inc.