Chautauqua selected to replace ExpressJet
Apr 18, 2006 | 2:47 pm
#1
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Chautauqua selected to replace ExpressJet
CO just announced that Chautauqua will replace ExpressJet if ExpressJet declines to pay higher lease rates on 69 ERJs:
Press Release
I've had good experiences on Chautauqua as an American Connection and Trans World Express carrier.
Greg
Press Release
I've had good experiences on Chautauqua as an American Connection and Trans World Express carrier.
Greg
Apr 18, 2006 | 3:38 pm
#2
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I still think this is just CO playing hardball in their XJ negotiations. CO is completely dependent on their express feeder and the overhead of going from one express carrier to two would stress the hell out of their ops, I should think.
Apr 18, 2006 | 3:49 pm
#3
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Originally Posted by oopsz
I still think this is just CO playing hardball in their XJ negotiations. CO is completely dependent on their express feeder and the overhead of going from one express carrier to two would stress the hell out of their ops, I should think.
Actually, I dont think it would be as hard as you think. They already have experience in dealing with a variety of CO Connection carriers, so splitting destinations with between XJ and Chautauqua/Republic shouldnt be all that difference.
Apr 18, 2006 | 4:07 pm
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it does seem strange that they said ALL the hubs. I'd think they would want to keep say, all CLE ops Chautauqua and the EWR/IAH still XJ. But then again, they might want to rotate a/c through, so who knows..
Apr 18, 2006 | 4:34 pm
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Originally Posted by oopsz
I still think this is just CO playing hardball in their XJ negotiations. CO is completely dependent on their express feeder and the overhead of going from one express carrier to two would stress the hell out of their ops, I should think.
I don't think it would be hard at all - but as i said before let the family fued begin.
-Vincent
Apr 18, 2006 | 5:10 pm
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Originally Posted by MBM3
Actually, I dont think it would be as hard as you think. They already have experience in dealing with a variety of CO Connection carriers, so splitting destinations with between XJ and Chautauqua/Republic shouldnt be all that difference.
I guess we'll just have to see how it goes.
Apr 18, 2006 | 6:27 pm
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Wouldn't be a problem
Originally Posted by oopsz
I still think this is just CO playing hardball in their XJ negotiations. CO is completely dependent on their express feeder and the overhead of going from one express carrier to two would stress the hell out of their ops, I should think.
Apr 18, 2006 | 6:44 pm
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Originally Posted by ContinentalFan
I think that CO is definitely playing hardball, but I also don't believe that it would be difficult for CO to switch. CO sold the silverware when it liquidated its holdings in XJ; I think that they should try to rebuild another, wholly or majority owned, regional carrier.
They still control some 30% or more through the pension fund
-Vincent
Apr 18, 2006 | 7:08 pm
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Does Chautauqua fly erj 170's for US? Would Co get these?
Apr 18, 2006 | 7:40 pm
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Originally Posted by otralot
Does Chautauqua fly erj 170's for US? Would Co get these?
Isn't there something in the contracts that prohibits planes of a certain size?
-Vincent
Apr 18, 2006 | 7:40 pm
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Originally Posted by otralot
Does Chautauqua fly erj 170's for US? Would Co get these?
Apr 18, 2006 | 7:56 pm
#12
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Originally Posted by vincom
Isn't there something in the contracts that prohibits planes of a certain size?
-Vincent
-Vincent
Apr 18, 2006 | 8:01 pm
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Originally Posted by vincom
They still control some 30% or more through the pension fund
-Vincent
-Vincent
Apr 18, 2006 | 8:47 pm
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Definitely a cash cow
They regional carrier concept has proven to be an effective model in the industry. Does anyone know the minimum runway that a 145 needs? The reason that I ask is that there appears to be quite a few small airports on the west coast that can't handle B737, so won't have LUV as a customer. I often wondered why CO doesn't move it's prop aircraft to LAX and service those airports. The regional jets would work too, if they require a shorter runway than a B737.
Apr 18, 2006 | 8:57 pm
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Originally Posted by the-ca-goat
Actually it's now quite a bit less than that--somewhere around 10%. And who really cares about pension funds these days anyway
We have reduced our ownership of Holdings from 100% prior to the initial public offering of Holdings common stock in 2002 to 8.6% as of December 31, 2005, through a series of transactions. These transactions include the initial public offering of the common stock of Holdings by Holdings and us in 2002, a sale of Holdings common stock by us to Holdings in 2003 and contributions by us of Holdings common stock to our defined benefit pension plan in 2003 and 2005. Additionally, during 2005 we relinquished our right to appoint a director to Holdings' Board of Directors. Due to the capacity purchase agreement, the disposition of our interest in Holdings has had no effect on our operations and on ExpressJet's flight operations on our behalf.
Given the choice of either paying more rent to CO (and flying them for some other airline) and giving them back to CO, it seems pretty certain that CO will get those RJs back, meaning Chautauqua will operate them for CO.