Update from MEC Chair: All,
I need to make you aware of developments that have transpired during the past couple weeks that could have a dramatic impact on our future and the future of ExpressJet Airlines. Late last week, management requested all of the labor leaders on property join them on a call to discuss new information from United Airlines as well as management’s strategy for ExpressJet’s survival into 2021.
On this call, we were informed that United Airlines stated it would only require one E145 carrier moving forward. United Airlines will base their final selection on many factors and will make its decision in the coming weeks. While ExpressJet offers many attributes that make us an attractive long-term partner, cost has reared its ugly head once again and we have been asked by our management team to close the gap between our costs and those at CommutAir. This gap can only be sufficiently closed with labor cost reductions from all labor groups on property, both represented and not. We were briefed by management July 21 about their proposed plan that included reductions in overall pilot compensation and other benefits. I will note that the benefits management proposed reducing did not include health care. While I cannot discuss specifics at this time, your MEC is fully engaged as we move forward assessing the situation and making the initial decisions that are best for the overall health of our airline. We hope to have more concrete answers about our future soon; however, there is no doubt we will be a much smaller airline this fall with meager growth forecast over the next few years.
This has been more than challenging for all of us, and ExpressJet pilots are poised to continue our tradition of examining all the options on the table prior to making the tough decisions necessary to keep us afloat. At this point no decision has been made on how we will proceed, and the next few days will be very challenging and arduous for your elected leadership. I will continue to update you with information as the situation develops.