DARREN SHANNON / WASHINGTON DC
US regional carrier ExpressJet could lose its entire fleet under a feeder deal unveiled last week by Continental Airlines and Republic Airways Holdings subsidiary Chautauqua Airlines.
The new contract is contingent on ExpressJet’s own deliberations on a revised capacity purchase agreement imposed in December by Continental that could transfer the subleases on 69 Embraer ERJ-145s now leased from, and operated for, the US major.
These 69 aircraft are fundamental to ExpressJet’s future. Should the Continental Express carrier – which was once a wholly owned subsidiary of the Houston-based airline – decide not to retain the subleases and agree to stringent operational terms including bans from all Continental hubs, these aircraft will be transferred to Chautauqua, which will be contracted to operate them until at least 2011 and possibly to 2016.
The new deal also includes a clause that could increase Chautauqua’s Continental Express fleet to 274 aircraft, the exact number operated by ExpressJet.
A source close to the US major confirms that the contract’s condition refers to ExpressJet’s fleet of Embraer twinjets, but emphasises that the regional carrier can still retain its feeder contract. “ExpressJet has until 28 September to decide what happens to those 69 aircraft. After that, we shall see what happens,” says the source.
The deadline was issued by Continental in December.
Source: Flight International
