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ExpressJet Launches Own Airline

ExpressJet, which used to fly under the Continental Express banner, has launched its own airline (called ExpressJet, of course).  Pay no attention to the Independence Air debacle that happened when Atlantic Coast Airlines did the same thing.  Not important (they say).  What is important is that you can now fly nonstop from Omaha to San Diego.  Or, if you prefer, Tulsa to Sacramento.  Could be ugly.

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  1. The folks running ExpressJet are adults (former CO management), so this is unlikely to be a repeat of the FLYI fiasco. That said, I don’t like the fact that this was a “default” business plan: something to do with excess aircraft after CO decided to go with a lower bidder for some of its RJ feed. I also don’t like the fact that they’re using 50-seat RJs, which have notoriously high CASMs.

    Would I invest in this company based on what I currently know? No. Do I think they could surprise us? We’ll see. I don’t think they would launch this service unless they thought there was a reasonable chance of making a profit. If they manage to pull it off, it will be a wonderful development for small cities, which are currently without nonstop service to non-hub airports.

  2. I agree, especially about the 50 seat RJs, which are expensive and have quickly grown out of favor.

    1 point to quibble with: nobody starts an airline thinking that they will fail. Everybody thinks their idea was a good one (including Western Airlines, which shut down today after 2 weeks). I’m just not sure how you can make thin routes like this profitable using expensive aircraft unless you jack up prices (which they seem like they’re not going to do).

  3. ExpressJet Airlines is a big dissapointment. I’ve never seen a more unpolite and mean airline checking cleark on any other airline. In my past, I flew most of airlines that are out there and never lost a plain because of an idiot checkin cleark. I know for sure to avoid this airline in the future. Just a friendly heads up for future customers.

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