Well here it is, the plans for Expressjet!
 

EXPRESSJET REPORTS FOURTH QUARTER, FULL YEAR EARNINGS AND ANNOUNCES PLANS FOR 69 JETS
HOUSTON, Jan. 24, 2007 - ExpressJet Holdings, Inc. (NYSE:XJT) today reported fourth quarter net income of $22.8 million, or $0.39 diluted earnings per share. For the year ended December 31, 2006, net income totaled $92.6 million, or $1.56 diluted earnings per share.

ExpressJet turned in outstanding operating results during the quarter as evidenced by a 100% completion rate on eight days during the busy holiday travel season, and ended the quarter with a total controllable completion factor of 99.9%, excluding cancellations for weather and air traffic control.

Also during the quarter, the company finalized its plans for the 69 aircraft that will be released from its capacity purchase agreement with Continental Airlines in 2007.

“Our employees continue to concentrate on running a great operation and providing superior customer service. We are excited to expand that focus as we begin pursuing other opportunities,� said President and CEO Jim Ream.

FOURTH QUARTER REVIEW

Operational Review

Fourth quarter operating revenue increased 5.1% to $425.8 million, versus $405 million in the fourth quarter of 2005. Compared to the same period last year, ExpressJet Airlines grew its capacity 5.8% to 3.3 billion available seat miles. Revenue passenger miles were up 7.4%, resulting in a 1.2 point year-over-year increase in load factor to 77.3%. For the fourth quarter, the controllable completion factor was 99.9% and the overall completion factor was 97.1%. For the year 2006, ExpressJet Airlines carried over 18 million passengers, 13% more than in 2005, and operated an average of over 1,300 daily departures.

On December 31, ExpressJet Airlines’s new Corporate Aviation division operated its inaugural charter flight and to date has flown 205 segments and 276 block hours. Six aircraft are currently operating in the Corporate Aviation division, and the company intends to grow the charter fleet to 15 aircraft.

Also during the quarter, ExpressJet continued discussions with a prospective U.S. partner to operate ten EMB-145XR aircraft under a capacity purchase agreement. ExpressJet expects to complete these negotiations during first quarter 2007 and to make an announcement once definitive agreements are executed.

ExpressJet currently plans to use 44 aircraft to launch branded service in markets that are sized appropriately for these aircraft and typically do not have direct flight options today. Service to 24 cities in the West, Midwest and Southeast United States will begin in April and May 2007. ExpressJet will begin selling tickets on www.xjet.com February 1 and through other preferred travel agency partners by March. Product features will include free XM Satellite radio with over 100 channels of programming, advanced seat assignments with no middle seats and complimentary snacks and meals on longer flights.
Ream said, “With 80% of our fleet committed to capacity purchase agreements, allocating 20% into markets that offer more strategic control and a greater potential for future growth is the right mix for ExpressJet.�

ExpressJet and Continental have been unable to agree on rates for 2007 and are submitting their disagreements to binding arbitration in accordance with the terms of the capacity purchase agreement. The agreement sets forth procedures and a schedule that will likely result in a hearing and issuance of a final decision by the arbitration panel in the late second or early third quarter of 2007. ExpressJet will continue to be paid under the 2006 block hour rates during the arbitration and expects the decision setting the revised rate structure to be retroactive to January 1, 2007. ExpressJet does not intend to issue any reports on the progress of the arbitration until the panel issues its final decision.

Financial Review

ExpressJet’s fourth quarter 2006 operating income reflected a 7.9% operating margin, as compared with an operating margin of 9.8% for the fourth quarter 2005. For the fourth quarter 2006, ExpressJet Airlines earned a 10% operating margin under its agreement with Continental, but expenses not covered by this agreement for items related to the company’s strategic diversification and for back-office infrastructure to implement services previously performed for the company by Continental reduced the overall consolidated margin.

ExpressJet ended the fourth quarter 2006 with $302.9 million in cash and cash equivalents, including $11.2 million in restricted cash.

For the year ended December 31, 2006, ExpressJet’s operating income reflected an 8.4% operating margin, compared to 10.0% during the prior year. For the full year, ExpressJet’s quarterly results consistently exceeded the contractual operating margin band of 10% contemplated in the capacity purchase agreement, leading to a total rebate of $7.3 million to Continental, as compared to $23.4 million rebated during 2005.

Capital expenditures totaled $12.1 million for the fourth quarter 2006 compared to $7.4 million during the same period in 2005. ExpressJet anticipates expenditures totaling approximately $45 million for the full year 2007.

During the fourth quarter, Holdings did not make any purchases under its previously announced securities repurchase program.

ExpressJet will conduct a telephone briefing to discuss its fourth quarter results Wednesday, Jan. 24, at 10:00 a.m. EDT (9:00 a.m. CDT). A live webcast of this briefing will be available online at expressjet.com - investor relations.

CORPORATE BACKGROUND

ExpressJet Holdings operates numerous divisions designed to leverage its management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines’ multiple operations include capacity purchase agreements for mainline carriers serving over 150 destinations in North and Central American with more than 1,300 departures per day; corporate aviation, providing clients customized 50-seat travel options; training services through its world-class facility in Houston, Texas; and branded flying, providing non-stop service to markets concentrated in the West, Midwest and Southeast regions of the United States. ExpressJet Services is the North American partner to three major European original equipment manufacturers and provides composite, sheet metal, interior and thrust reverser repairs throughout five facilities in the United States. For more information, visit expressjet.com.

Some of the statements in this document are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect actual results, and variances from current expectations regarding these factors could cause actual results to differ materially from those expressed in these forward-looking statements. Some of the known risks that could significantly impact results include: the company’s dependence on its capacity purchase agreement with Continental; the company’s dependence on Continental's financial and operational stability; the company’s aircraft and facility leases with Continental; the company’s ability to implement its growth and diversification strategies, including the profitable use of the 69 aircraft outside of the Continental capacity purchase agreement; flight disruptions as a result of operational matters; regulatory requirements; and competition and industry conditions. Additional information concerning risk factors that could affect the company’s actual results are described in its filings with the Securities and Exchange Commission, including its 2005 annual report on Form 10-K. The events described in the forward-looking statements might not occur or might occur to a materially different extent than described herein. The company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

I am pretty excited, direct flights, only offered by us! with codeshars agreemants, thinks seem to be headed the right direction what do you gusy thing?

XJet still fly from KLFT to Houston?
Thats how I get home when on leave.


-LAFF

Just go to KLCH and drive but then again I'm from KLCH so....

just like we've been saying for months...maybe forsters will shut up now

Wow...they are going to be almost if not completely independent by the sounds of it.

Yeah Im kinda scared I have only been here since OCT, I have like 250, maybe even 300 guys underneath me already but that wont be enough if things go south, but I think its going to work out, I really do, its not that many planes, CAL makes us cash, Charter makes us cash, and we arent competing directly with anybody, i.e. INDY Air, everybody pray for us :)

And they're still hiring?

Best of luck to you guys, I have several friends who fly for XJT and I really would like to see XJT succeed.

Yeah like crazy

Well this business model is nothing like INDY, Indy went 100% on their own brought on a new fleet type and went head to head with the majors who were in bankruptcy and had nothing to lose. Not to mention they even went against SWA. WE are going to be serving cities with no other direct service. No hub and spoke and no major hubs where the majors fly. Also we have place 10 aircraft with another carrier (supposedly delta out of SLC) 15 planes in charter which are already booked up and making money. and 205 aircraft flying for CAL with a guaranteed income.

The branded flying will be initially a small part of the overall Business model of XJT. But will hopefully keep growing. The new paint job rules!!

Attachment 388

sneak peak
:D

Attachment 389

Sneak Peak 2;)

Yeah I also hear that Delta will say Feb1 who they awarded the rest fo their flying too, I also heard that we are supposed to make another big announcement Feb 1, Il tell ya what U wouldnt be surprised to see a few XR's in Delta colors ;)

Sure is perty

I'm telling you; SKW Inc, XJT and RAH are the strongest regionals out there and will stand the tests that lay ahead of them. No offense intended to the others but the three listed above have the ability to adapt because to their enormous reserves of cash.

I can't wait to see the XJT Branded A/C at airports.

well in the call today ream said 10 planes where placed with another carrier and the deal was in the final stage before being announced whtich flows nicely with the dela rumor. Stay tuned ;)

Me too, thanks for the support, that we need to do is be supporting each other rather than having ****ing matches,

Damn this is getting exciting, with all this news Im pretty psyched

Couldn't agree more!

Me Too!!:D

I'm glad to hear this. Good luck XJT guys! I hope you do very well in the new branded flying.

Is the branded stuff going to be LCC stuff?

that question was asked and The CEO said something like "Not Necessarily" avg ticket prices.

Planes are retrofitted with Free XM radio in every seat. New memory foam seating, and of course no middle seats. Free food and i have heard wine on some flights. Those details will be out on the 1st of Feb.

No where in there did it talk about code share agreements. Stay on your toes, XJT isn't out of the woods yet. Until they can show they can get butts in those comfy seats, and sell those comfy seats for a profit, I will still continue to caution people in going there (which is how this whole thing started to begin with).

And advertising that consists of bragging that your planes have no middle seats? LOL that's classic. Reminds me of Great Lakes 1900 marketing points. "Spacious Stand up Cabin" "Window and aisle seat in one"

The comfy seats, XM Radio, and FOOD will certainly be a good selling point. Now, the real question, will passengers pay more for all that while sitting in an RJ, or will price rule all?

the selling point is direct flights that no one else offers

But Saab, the most appealing nonstops are already served by mainline!

What are you guys planning?

Ontario to Fresno?

You want to make money? North-South nonstops.

Smaller markets to south.

Allentown to Orlando
Scranton to Orlando
Syracuse to Orlando
Albany to Tampa (SWA)

allegiant does allentown to FL

And jetBlue serves SYR-MCO.

Believe me, those are money makers. Lots of old people and their grandkids travel back and fourth. There is money there Saab, tell MGT!

There are a lot of "ifs" when doing this. If you offer service no one else is doing, maybe there is a reason no one else is doing it ($$)? If you start competing with airlines like SWA in the West or anywhere, then good luck with that. You might even see competition adding the same new routes as XJT just to compete. If you find a good way to fill seats (ABE-MCO, etc), you may not have a gate available at that airport. You have to fight for gates and routes, and that costs money too. Not to mention hiring or contracting all the people and ground support for every airport. That adds up too.

I'm ex-Express and still have a lot of friends there, so I wish them all good luck with the future; it sounds exciting and scary at the same time.

Good points.

Very good points, however we have a pretty solid management team that has planned this out, and remember its only 20% of our flying, not all or nothing, and filling 50 seats is not nearly as difficult as a 737, and we wont be competing with them in the first place. We also have learned a great deal of do, & don'ts from Air Indy. We will see, it will be exciting

And DMEarc seems kinda negative, but then agian i would be too if I still at Colgan hehe.........................j/k

I'm excited for you guys... at least you have something to look forward too... better than the stagnation we're experiencing. Best of Luck.

I am at CJC. It blows.

But I wish you guys the best. But as I a pilot I analyze everything, from every angle to see what would be more efficient, etc. It's just me.

No I agree, best way to look at this industry, from all angles !