ExpressJet congratulates Continental and United on merger announcement
03-May-2010 On 03-May, Continental Airlines, Inc. and United Air Lines, Inc. announced their respective Board of Directors agreed to merge the two companies, pending required approvals.
ExpressJet's President and Chief Executive Officer, Tom Hanley stated, "We are excited to hear of the news of the merger of Continental Airlines and United Airlines. Although there is no doubt that both Continental and United will undergo changes as the entities are combined, we are confident that our services to each of these partners will remain at industry leading levels. ExpressJet looks forward to being an integral part of the success of these companies for many years to come."
ExpressJet does not anticipate that the terms of its aircraft leasing arrangements with Continental or its capacity purchase agreements with Continental and United to materially change due to the merger announcement. ExpressJet's capacity purchase agreement with Continental covers a minimum of 190 aircraft through June 30, 2015, and its agreement with United covers 11 aircraft for a minimum of three years, 11 aircraft for a minimum of two years - both effective December 1, 2009 - as well as 10 additional aircraft from May to December 2010.
ExpressJet currently operates 244 aircraft, including 206 aircraft for Continental as Continental Express and 32 aircraft for United as United Express. Based on May flight estimates, ExpressJet's market share in the combined entity would represent approximately 30%.