United Airlines to drop ExpressJet as affiliate, threatening regional airline’s survival
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Sign up for the free daily TPG newsletter for more airline news!
.@united says “Beginning later this year we will consolidate all of our E145 operations into CommutAir, which will then become United’s sole operator of this aircraft type. This transition will take a number of months.” Full Statement: pic.twitter.com/8keWvy28AD
— Kris Van Cleave (@krisvancleave) July 30, 2020
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
Featured image by Robert Alexander/Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.