The Blame Game
 

"April 7, 2008

Mr. James B. Ream
Chief Executive Officer and President
ExpressJet Holdings, Inc.
700 North Sam Houston Parkway, Suite 200
Houston, TX 77067




Mr. George R. Bravante, Jr.
Chairman
ExpressJet Holdings, Inc.
700 North Sam Houston Parkway, Suite 200
Houston, TX 77067




Dear Jim and George:


We understand that SkyWest, Inc. (“SkyWest”) has delivered to you an offer to acquire ExpressJet Holdings, Inc. (“ExpressJet”). In connection with your consideration of such offer, we wanted to inform you of our understanding with SkyWest regarding a new capacity purchase agreement (“CPA”) and our intentions regarding our existing contractual relationship.


First, we confirm that we have negotiated a new CPA with SkyWest, which would become effective if SkyWest is successful in acquiring ExpressJet (which, in turn, is subject to due diligence, among other things), and that we would consent to the change of control that would occur upon such an acquisition.


Second, absent our entering into a new CPA with savings of the magnitude we have negotiated with SkyWest, we currently expect to deliver to ExpressJet on June 28, 2008, a notice to withdraw 51 of the existing 205 Covered Aircraft from the current CPA, beginning in December 2009. Further, although we have the right to terminate the existing CPA at any time, we currently anticipate we will not extend the term of the current CPA (which we must do, if at all, by December 31, 200, and thus the current CPA would simply expire in accordance with its terms beginning on December 31, 2010, with the expectation that all aircraft would be removed from the current CPA by the end of 2012.


We hope this information is helpful to you.


Sincerely,


Jeffrey J. Misner
Executive Vice-President and Chief Financial Officer
Continental Airlines, Inc."

Acquisition didn't occur until August 4th, 2010. All of that information is not valid for the purchase 2nd time around. In fact, Jim Ream wasn't even the CEO of Expressjet in 2010, I believe it was Tom Handley (sp?)

AnchorDown

Actually, it is valid. Because after the XJT pilots were whipsawed agains the Skywest pilots in this process, JR literally signed this CPA that Skywest had negotiated with CAL that had block hour revenue that took into consideration the 16% concession that Skywest wanted the XJT pilots to take in order to bring us down to parity with the average Skywest total compensation.

So after JR signed that, despite XJT ending all their branded and pro-rate flying, and sending all 69 aircraft back into CPA flying for CAL, the revenues from that CPA were not enough to cover costs. Again, because of the lower block hour rate Skywest was offering CAL. This 2008 CPA is the SAME CPA except for a couple year extension and the addition of larger replacement/additional aircraft clause.

Skywest broke it, then they bought it.

One list right nevets

No, it's One List or NOTHING!

and there in lies the problem

Well, I'm just one person with one vote. The XJT MEC on the other hand is a different story. They tried to sell that concessionary TA the last time and it didn't even have some sort of pathway to one list.