Tue, Jul 08, 2008
Regional Airline Will Keep Its 23 Planes
Delta Air Lines announced this week it will sever its
partnership with regional carrier ExpressJet, effective September
ExpressJet now operates Delta Connection runs out of Los Angeles
and Salt Lake City, reports The Houston Business Journal. Most of
those routes will go to other Delta Connection airlines such
as ASA, and Delta's own Comair subsidiary.
The Houston-based regional airline will hold onto the 23 Embraer
ERJ-145s it operates under the Delta banner. It's not yet know
whether ExpressJet will use those planes for its own branded
service, or to support its regional contracts with Continental
ExpressJet CEO Jim Ream put a positive spin on the news, noting
its Delta service wasn't a moneymaker. "With the losses we were
experiencing from our Delta pro-rate flying combined with our
ability to return aircraft to the lessor, this termination of
service is in the best interest of our company," Ream said.
As ANN reported last month, ExpressJet
recently reached a new contract with Continental, its largest
customer, to fly RJs for that carrier for the next seven years.
Though it locks in a minimum of 190 regional jets operating for
Continental each year -- providing ExpressJet with a stable
customer base -- it also locked in service charges lower than what
Continental had paid ExpressJet previously.
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