CO selects Chautauqua as CO Express carrier

CO has selected Chautauqua Airlines (RP) to operate up to 69 regional jets that will be withdrawn from its capacity purchase agreement with ExpressJet Airlines (XJT) and its parent, ExpressJet Holdings Inc., should XJT choose to return those aircraft to CO.

XJT is required to notify CO by Sept. 28, 2006, whether it will return any or all of the aircraft to CO, or continue to sublease the aircraft at increased lease rates from CO and fly them outside of CO’s hubs under a brand other than Continental Express, as permitted by the capacity purchase agreement.

RP, a subsidiary of Republic Airways Holdings Inc., will operate any aircraft returned by XJT as a second Continental Express carrier at each of CO’s domestic hubs – EWR, IAH and CLE. CO will continue to schedule and market all its regional jet service as it does today.