Published:
ExpressJet Announces Tentative Agreements With Labor Unions
HOUSTON, Oct. 14 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc.
(NYSE: XJT) announced today that 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. If ratified, ExpressJet 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.
ExpressJet Background
ExpressJet Holdings operates several divisions designed to leverage the
management experience, efficiencies and economies of scale present in its
subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services,
LLC. ExpressJet Airlines operations include capacity purchase for mainline
carriers and providing clients customized 50-seat charter options. ExpressJet
Services is the North American partner to three major European original
equipment manufacturers and provides composite, sheet metal, interior and
thrust reverser repairs throughout five facilities inthe United States. For
more information, visit http://www.expressjet.com.
Forward Looking Statement
Some of the statements in this document are forward-looking statements
that involve a number of risks and uncertainties. Many factors could affect
actual results, and variances from current expectations regarding these
factors could cause actual results to differ materially from those expressed
in the forward-looking statements. Some of the known risks that could
significantly impact revenues, operating results and capacity include, but are
not limited to: the company's continued dependence on Continental for the
majority of its revenue; Continental's ability to terminate the capacity
purchase agreement with the company; potential loss of access to aircraft,
facilities and regulatory authorizations, as well as any airport-related
services that Continental currently provides to the company; the company's new
operations are less profitable than historical results; certain tax matters;
reliance on technology and third-party service providers; flight disruptions
as a result of operational matters; regulatory developments and costs,
including the costs and other effects of enhanced security measures and other
possible regulatory requirements; competition and industry conditions.
Additional information concerning risk factors that could affect the company's
actual results are described in its filings with the SEC, including its 2007
annual report on Form 10-K. The events described in the forward-looking
statements might not occur, or might occur to a materially different extent
than described herein. The company undertakes no duty to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE ExpressJet Holdings, Inc.
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