ExpressJet Airlines realigns contract

ExpressJet Airlines, a wholly owned subsidiary of SkyWest, Inc. (NASDAQ: SKYW) has announced the initiation of a clearly defined long-term strategy, the company said.

As part of this plan, ExpressJet has secured a new, five-year extension of its United Airlines ERJ145 contract, effective Jan. 1, 2018 through Dec. 31, 2022. The new agreement enhances ExpressJet´s United partnership and provides long-term stability to its model. It also provides ExpressJet pilots with continued access to United´s Career Pathway Program. Financial terms of the agreement were not disclosed.

Additionally, ExpressJet and Delta Air Lines mutually agreed to initiate the wind-down of its remaining dual-class flying agreement under the Delta Connection brand, allowing ExpressJet opportunities to place aircraft with other partners. The agreement, which includes 28 CRJ900s and 33 CRJ700s, was previously scheduled to expire beginning in 2019. The aircraft financed by Delta, including all CRJ900s, will be returned to Delta beginning in fourth quarter 2017; ExpressJet expects to transition other aircraft previously operated under its Delta agreement to other major partners throughout 2018.

As part of this realignment, ExpressJet has secured an agreement with American Airlines to transition eight additional CRJ700s to its American Eagle operation. That transition is expected to take place during second quarter 2018.

Headquartered in Atlanta, ExpressJet is a regional airline with 6,100 aviation professionals, an average of 1,077 daily flights and an all-jet fleet of 228 aircraft. ExpressJet operates as American Eagle, Delta Connection and United Express to serve more than 164 airports in the US, Canada, Caribbean and Mexico.