• 

  Embraer

  Stock Code:

  ERJ

  Date Founded:

  1969-08-19

  CEO:

  Francisco Gomes Neto

  Headquarters Location:

  Sao Paulo, Brazil

  Key Product Lines:

  Embraer 170, Embraer 175, Embraer 190, Embraer 195, Embraer 175-E2, Embraer 190-E2, Embraer 195-E2

  Business Type:

  Planemaker

Just a few months after losing the United Airlines contract, Atlanta-based ExpressJet has filed for Chapter 11 bankruptcy protection and aims to enter into a court-supervised liquidation in the following weeks. The filing for bankruptcy means that Aha!, a regional airline flying for ExpressJet, will see its wings clipped. A check on the website for Aha! reveals that it is temporarily unavailable, possibly permanently down.

Shuffled through several hands

ExpressJet started commercial operations in 1987 after Continental Airlines acquired a group of small commuter airlines, including Britt Airways, Bar Habor Airlines, and Rocky Mountain Air. In 2005, Continental Airlines decided to reduce the fleet of ExpressJet to approximately 69 aircraft, which led to the decision to operate the aircraft independently.

The following year, ExpressJet began its charter operations with flight services to 24 destinations before expanding with point-to-point services throughout the US. Then in 2007, the regional airline started flying on behalf of Delta Air Lines, under the Delta Connection banner, and provided feeder service for Frontier Airlines. But in 2008, ExpressJet virtually ceased all its flight services due to soaring oil prices, which were an estimated $140 per barrel.

Turbulent skies with United Airlines

The regional airline has since never regained operating independently but has continued to be shuffled through several airlines, such as Branson Air Express, Atlantic Southeast Airlines, and American Airlines, under the American Eagle banner. But perhaps the most notable contract ExpressJet ever had was with United Airlines, which began as a temporary opportunity to fly as a United Express carrier in June 2009, and ended in September the same year.

A few months later, in December, yet another new contract was signed for ExpressJet to operate under United Express Carrier. And in late 2010, the regional carrier signed a multiple-year agreement with United Airlines for more than 20 Embraer ERJ-145 aircraft flown in entire United Express colors. United Airlines eventually began talks of a potential purchase of ExpressJet in 2017, which saw fruit in late 2018 when the regional airline was acquired by ManaAir, with KAir Enterprises as the majority owner with 50.1% and United Airlines as the minority owner with 49.9%.

United Airlines then supplied Embraer ERJ-175 aircraft to ExpressJet and reassigned more Embraer ERJ-145 aircraft to the regional airline's fleet, making it the largest operator of the ERJ-145 aircraft worldwide. Unfortunately, the pandemic caused United Airlines to end its contract with ExpressJet, and the international carrier transferred the regional flight operations to a different affiliate, CommutAir. CommutAir would become the sole operator of the United Express Embraer ERJ-145 fleet.

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Unlucky with Aha!

From becoming one of the most significant regional operators to being uncontracted, ExpressJet had to find ways to stay in business and relaunched with a standalone airline, known as Aha!, which stood for 'air, hotel, adventure.' The newly reborn airline launched late last year and operated using 50-seater Embraer E145 aircraft to destinations across the west, and had just recently inaugurated new non-stop flight services between Idaho Falls and Reno-Tahoe on August 11th.

Unfortunately, the experiment with Aha! was not enough to bring in the required revenue numbers, given the difficulty in establishing passenger servicing infrastructure in smaller airports during post-pandemic times. Despite all its efforts and hoping that Aha! would be its saving grace, ExpressJet has reached the end of its line. Subodh Karnik, CEO of ExpressJet, explains the decision by saying:

“A combination of conditions led us to this decision. Despite the valiant efforts of our employees to overcome challenges, and despite great support by our cities and airports – especially Reno-Tahoe and the community- we arrived at a point where termination of operations was in the best interest of our stakeholders."

Passengers who have previously booked with Aha! have been told to contact their banks for refunds, and ExpressJet has stated it cannot aid in alternate travel arrangements. It is sad to see ExpressJet spring from being one of the more sought-after regional carriers and operating over 400 aircraft in its prime to experimenting with Aha! and failing.

Source: onemileatatime