Express Jet Continues to Struggle with Aircraft Decision

With a lower than expected net profit, driven by higher expenses, Express Jet (XJT) is continuing to struggle to place the 69 aircraft after Continental slashed XJT’s Continental Express operation by one quarter. However, it has gained increasing confidence in its corporate shuttle – Express Jet Corporate Aviation – having increased the number of planes devoted to the service from 10 to 15 Embraer ERJ145XRs. It also hopes to begin its own branded service application in the second quarter and expects to begin selling tickets for the new service in February. It had hoped to name the applications for the balance of the 69 aircraft during this week’s investor meeting but it said that negotiations were taking longer than expected. Airline Analyst Ray Neidl said, while the company’s efforts to diversify away from Continental carry high risk, Express Jet will have adequate cash flow and good cash reserves to fund its operations during its transition period if the balance of its Continental Express operations remains in place.