ExpressJet Holdings, parent company of ExpressJet Airlines, announced (07-Jun-2010) details of the first step of its multi-phase "Operation: Green Light". The key elements of the plan's initial phase, expected to provide up to USD40 million in run-rate cost savings, include:
- Reducing corporate overhead, including implementation of a hiring freeze for all current management openings;
- Increasing the company's focus on "safety at work" to reduce worker's compensation claims and lower restricted cash requirements;
- Collecting revenue-related amounts owed under third-party contracts;
- Improving crew planning procedures to increase productivity and lower related travel expenses;
- Increasing maintenance productivity while lowering vendor costs.
The plan was developed in coordination with ExpressJet's advisers, including Goldman Sachs & Co and Seabury Securities LLC, with the carrier commencing implementation of the plan during 2Q2010. As ExpressJet completes the implementation of the plan's initial step, it will begin detailing the next phase of cost savings opportunities, which will include a competitive review of all salaries and benefits. The next phase of the plan will be designed to provide ExpressJet with a competitive cost structure and a stronger balance sheet to support growth and new, profitable opportunities. [more]