RAA: ExpressJet Airlines faces 'unplanned wind down' following loss of contract with United Airlines

Regional Airline Association (RAA) reported (31-Jul-2020) ExpressJet Airlines plans to potentially wind down operations by the end of 2020, following the loss of its contract with United Airlines. The carrier will now evaluate alternative business strategies for 2021 and beyond, in order to preserve its business, operations and workforce. RAA stated the US Treasury is observing strict collateral and loan to value requirements that a majority of regional airlines are unable to meet. RAA president Faye Malarkey Black noted: "ExpressJet is not the canary in the coal mine; without intervention, this will be the fourth regional airline to fail. When an airline shutters, it's like a negative force multiplier". She urged lawmakers to "set aside partisan differences and extend the crucial Payroll Support Program (PSP) without delay", adding: "Congress should act to ensure Treasury - once and for all - allows regional airlines unobstructed access to the Air Carrier Loan programme as Congress intended". According to Ms Black, ExpressJet is "facing an unplanned wind-down", with "3000 jobs" in the balance and the potential for "substantial loss of air service" to communities upon the expiration of CARES Act service requirements. [more - original PR]