CO and XJT to modify regional jet deliveries
CO announced Wednesday that, as a result of current conditions in the U.S. air travel market, CO, XJT and Embraer have agreed in principle to reschedule the delivery of Embraer regional jet aircraft. XJT is expected to now take delivery of 36 regional jets in 2003, instead of 48, and 21 regional jets in 2004, instead of 36. The remaining 29 regional jets on firm order under the aircraft purchase agreement with Embraer will be delivered in 2005 and 2006.
CO purchases all of XJT’s regional jet capacity, which operates as COEX. The rescheduling of regional jet deliveries is subject to execution of definitive documentation and the approval of CO’s board of directors.
“Continental’s strong relationships with both Embraer and ExpressJet allow us to reschedule these deliveries to better match our capacity needs resulting from current market conditions,” said CO President Larry Kellner.
CO estimates that these aircraft delivery changes will not affect COEX’s estimated year-over-year capacity increases for the first and second quarters of 2003 of 25.5 and 29 percent, respectively. However, COEX’s year-over-year capacity increase is now estimated at 31 percent for the third quarter of 2003 and 30 percent for the fourth quarter of 2003, with a 29 percent increase for the full year 2003.
“We believe this agreement represents the best interests of Continental and ExpressJet under current industry conditions by allowing us to maintain our long-term growth plans while taking steps to ensure that each of us remain viable and competitive during this period of unprecedented challenges,” said XJT President and CEO Jim Ream.
CO announced Wednesday that, as a result of current conditions in the U.S. air travel market, CO, XJT and Embraer have agreed in principle to reschedule the delivery of Embraer regional jet aircraft. XJT is expected to now take delivery of 36 regional jets in 2003, instead of 48, and 21 regional jets in 2004, instead of 36. The remaining 29 regional jets on firm order under the aircraft purchase agreement with Embraer will be delivered in 2005 and 2006.
CO purchases all of XJT’s regional jet capacity, which operates as COEX. The rescheduling of regional jet deliveries is subject to execution of definitive documentation and the approval of CO’s board of directors.
“Continental’s strong relationships with both Embraer and ExpressJet allow us to reschedule these deliveries to better match our capacity needs resulting from current market conditions,” said CO President Larry Kellner.
CO estimates that these aircraft delivery changes will not affect COEX’s estimated year-over-year capacity increases for the first and second quarters of 2003 of 25.5 and 29 percent, respectively. However, COEX’s year-over-year capacity increase is now estimated at 31 percent for the third quarter of 2003 and 30 percent for the fourth quarter of 2003, with a 29 percent increase for the full year 2003.
“We believe this agreement represents the best interests of Continental and ExpressJet under current industry conditions by allowing us to maintain our long-term growth plans while taking steps to ensure that each of us remain viable and competitive during this period of unprecedented challenges,” said XJT President and CEO Jim Ream.
