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NEW YORK (Reuters) - Continental Airlines Inc. said on Wednesday it plans to take back 69 regional jets that ExpressJet Holdings Inc. had been operating for it after failing to win a cheaper contract.
Continental's move to withdraw a quarter of the 274 planes ExpressJet operates makes it the latest regional airline to come under pressure from larger partners trying to save money as they struggle with heavy losses.
Continental, which owns 8.6 percent of ExpressJet's common stock, said it would seek bids from other regional jet operators to operate the aircraft at more competitive rates.
Lower pilot wages and shittier work rules, wahoo! A couple of my friends just got hired by ExpressJet. You should think before you make stupid comments.
Lower pilot wages and shittier work rules, wahoo! A couple of my friends just got hired by ExpressJet. You should think before you make stupid comments.
Mike
I feel bad for your friends, as I've probably met some of them.
Lower pilot wages and shittier work rules, wahoo! A couple of my friends just got hired by ExpressJet. You should think before you make stupid comments.
Mike
I wouldn't be surprised if an outside carrier, such as Trans States is given a Continental Express contract as a way for Express Jet and Continental to bust down current pay wages and benefits.
Wahoo! Less Regional Jets, finally the craze is over!
I will say the same when NW dumps the DC-9
THE VOICE OF REASON HAS SPOKEN!
Pop quiz: Which US president said, "Saddam Hussein has spent the better part of this decade, and much of his nation's wealth, not on providing for the Iraqi people, but on developing nuclear, chemical and biological weapons and the missiles to deliver them."
George W. Bush is not correct. It was Bill Clinton in his 1998 State of the Union speech. HMMMMMMMMM.
Lower pilot wages and shittier work rules, wahoo! A couple of my friends just got hired by ExpressJet. You should think before you make stupid comments.
Van Hoolio, I am really sorry to hear about yor friends. It sucks to hear about this, and it's even worse that news like this is becoming all too common. As the others said above we will see a reducation in pay for most of the flight crew, but most of us need to remember that RJ pilots do not get paid all that well to begin with.
I finally have the opportunity to trade my stock without it being "insider trading". We pretty much heard this about a month ago.
ExpressJet has 9 months to to accept the subleases at higher rates or decline them. It is hiiiighly doubtful that they will accept them. The two parties have agreed to continue with the December 2005 rates until a new rate has been agreed upon. ExpressJet will end up being the overall loser, as, more than likely a lower rate than the current one will take effect and ExpressJet will end up cutting pay and costs to keep a safe profit margin. I would not be surprised to see Mesaba or maybe even Pinnacle receiving a bid due to the relationship and status with Northwest. Continental would more than likely pull all ExpressJet service out of several cities that would allow more efficient routing of the aircraft, rather than just cut service to numerous cities. If Pinnacle or Mesaba receive the contract, I wouldn't be surprised to see cities where Northwest Express and ExpressJet both operate be cut first. Although I am sure some of the Mexico routes will go away, I doubt that they will offer much, if any, of the Mexican routes to the winning bidder, as it may not be worth the trouble of setting up shop for the new regional.
If (BIG if) ExpressJet should take some or all of the aircraft, they would be prohibited from flying them into CO's hubs (EWR, IAH, CLE). They would fly point to point with one or two focus cities on their own. They've pretty much told us that it wouldn't be feasible unless oil prices drop significantly (below $40 per barrel).
I am pretty sure a big hitch in the current negotiations is the fact that Continental currently absorbs most of ExpressJet's fuel costs. The current contract caps ExpressJet's fuel expenses around 70 cents per gallon, which means Continental is paying over $1 per gallon.
ExpressJet's operations won't be affected at all until December 28, 2006, so any furloughs won't take place until the end of '06. You can pretty much bet, though, that a lot of people will be trying to jump ship while they still can. Hell, 69 aircraft means at the veeerrrry least, 138 pilots and 69 flight attendants are gone. You can pretty much bet that the agents in the cities affected will get a screwy deal like they did with the SkyWest and Colgan agreements, as well.
Anyways, just my 2 cents worth. We've been having quite a few conference calls the last month or two about all this, and I am sure we will continue to have a few more.
I understand you say you work for ExpressJet but I just have a few problems with what you wrote.
Not saying that beginning a relationship with Pinnacle or Mesaba isn't completely out of the question, but such a statement implies
- Continental might be forced via contract to pick up operating and maitenance costs associated with the CRJ aircraft as opposed to their streamlined budget now associated with ERJ aircraft.
- Continental would be forced to come into the middle of the issues of Pinnacle vs. Mesaba, Pinnacle vs. Northwest, Mesaba vs. Northwest and based on their current relationship with Northwest mainline, and even Delta, this might not interest Continental or ExpressJet operations.
- By pulling ExpressJet cities altogether instead of reducing routes, Continental is eliminating its name from a market altogether. If the market is severely underperforming, it might make sense, but such a move generally would put the whole "Continental revolution" into reverse providing bad imagery towards its forward market progression.
- Continuing along the lines of market presence, ExpressJet and Continental both have a severe interest in maintaining service to their Mexican markets.
As for the focus cities--Taking express planes and setting up shop in a focus city isn't all entirely far fetched on its own, although high unlikely until someone has been able to step back and observe the success or failure of United/Trans States out of San Antonio. Such a city or operation, if to ever come under operation, wouldn't happen until 2007, or unless a major carrier liquidates in 2006.
But I would not see why Continental/ExpressJet, if ever embarked on an adventure, would get into a contract where they would be prohibited from flying aircraft into the hub cities to feed international routes. That just doesn't make any damn sense with or without a focus city set up.
Also, 69 aircraft at the very least...138 pilots and 69 flight attendants are gone? Please, show some respect by not lying to yourself or your coworkers and triple that number.
Lower pilot wages and shittier work rules, wahoo! A couple of my friends just got hired by ExpressJet. You should think before you make stupid comments.
Mike
Congratulations, ive seen all of those shittier work rules and lower pilot wages first hand. So don't cry to me about those. Theve effected my life quite a bit.
Congratulations, ive seen all of those shittier work rules and lower pilot wages first hand. So don't cry to me about those. Theve effected my life quite a bit.
So you jump for joy when they happen to someone else? That doesn't make you look like any less of an ass.
No where does it say pay cuts would be in hand, more likely they would take less commission for operating the aircraft, doesnt necissarily mean pilots and such would take pay cuts.
No where does it say pay cuts would be in hand, more likely they would take less commission for operating the aircraft, doesnt necissarily mean pilots and such would take pay cuts.
No, it doesn't say it now, but it's basically right around the corner. It might not happen in 2006, but in 2007, the sunshine at ExpressJet will start to shine just a little bit darker.
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