United Airlines to drop ExpressJet as affiliate, threatening regional airline's survival
United Airlines will end its relationship with ExpressJet Airlines, dealing what could be a fatal blow to the 50-seat regional jet operator.
Chicago-based United will consolidate all of its United Express Embraer ERJ-145 flying with affiliate CommutAir and drop ExpressJet as a partner, United spokesperson Charles Hobart confirmed to TPG. The transition will take "a number of months."
United's latest fleet disclosure shows that CommutAir flies 37 ERJ-145s and ExpressJet 97 ERJ-145s for United, though some of those planes are parked due to the coronavirus pandemic.
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Travelers are unlikely to see an impact from United's decision to consolidate ERJ-145 flying with CommutAir. The planes will continue to fly the same flights with the same service and exterior livery — only the operator, and the crews working them, will be different.
However, the move could prove a death knell for ExpressJet. The Atlanta-based airline only flies ERJ-145s for the mainline carrier, having transitioned its E175s to SkyWest Airlines earlier this year.
If ExpressJet shut its doors, it would be the largest airline closure yet in the U.S. during the crisis. The Atlanta-based regional carrier employed more than 3,000 staff and fed United at its hubs at Chicago O'Hare (ORD) and Houston Bush Intercontinental (IAH).
Related: Could Trans States Airlines closure buy time for other US regionals?
To date, three U.S. carriers have shut down as a result of the pandemic: Trans States Holdings-owned Compass Airlines and Trans States Airlines, as well as RavnAir in Alaska. Both Compass and Trans States closed when their major airline partners ended contracts early as the number of people traveling slumped due to COVID-19.
United said that until there's a vaccine, it expects the recovery in air travel to plateau at around half of its 2019 passenger numbers. As a result, it has pulled back August schedules and notified 36,000 staff of possible furloughs.
And on Thursday, the airline told pilots that it may have to furlough 1,650 more pilots than previously planned, or as much as a third of its cockpit crewmembers, due to the stalled recovery.
Related: United Airlines worries travel recovery will stall until there’s a COVID vaccine
On July 27, Reuters first reported that United planned to select a single operator for its future ERJ-145 flying.
United owns stakes in both CommutAir and ExpressJet. While it describes its ownership in the former as a "minority stake," it has a 49.9% stake in ExpressJet parent ManaAir.
United will have six regional affiliates once it ends its relationship ExpressJet: Air Wisconsin, CommutAir, GoJet Airlines, Mesa Airlines, Republic Airline and SkyWest Airlines.
ExpressJet was formed as the operator of Continental Express in the late 1980s. It was acquired by SkyWest-subsidiary Atlantic Southeast Airlines in 2010 which than adopted its name, before being sold to ManaAir in 2019.
Related: Global air travel unlikely to recover until 2024 as COVID remains ‘issue’ in US, elsewhere
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.