Says New Contracts Will Yield $20 Million In Cost Savings

ExpressJet Holdings, Inc. announced Tuesday it reached tentative agreements with all four of its labor unions representing the pilots and instructors, mechanics, flight attendants and dispatchers. Voting is scheduled to be completed by November 1.

As ANN reported, ExpressJet announced the end to its branded service in July, with its last flight operating in early September. The carrier also lost a contract flying Delta Connection flights... leaving the Houston-based airline with just one major contract -- flying a fleet of 205 aircraft as Continental Express -- and a small charter operation.

If ratified, ExpressJet says it expects to realize $20 million in labor cost savings needed under the amended capacity purchase agreement with Continental Airlines, Inc. that became effective on July 1, 2008. The $5 million in remaining labor savings will be provided through wage and benefit reductions, as well as increases in productivity, within the airport services division.

"I appreciate the hard work that each executive council and negotiating committee put into reaching these tentative agreements," said ExpressJet's President and CEO, Jim Ream. "If ratified, every employee group at ExpressJet will have participated in concessions better enabling us to weather the current economic downturn and focus on developing strategic objectives and conserving cash," added Ream.

If ratified, the agreements will become effective immediately and become amendable in December 2010 for pilots and instructors, August 2009 for mechanics, August 2010 for flight attendants and July 2009 for dispatchers.

FMI: www.expressjet.com