ExpressJet branded flying

[Non Union]

I heard the load factors have been very light for the new operation. VERY light.

Is there a plan in place to scale it back if it doesn't work? XJT cannot go on for very long flying empty planes.

Also, I would imagine that they are getting stiff competition from about all angles - American Eagle, Horizon, CAL, Southwest.

Good luck to those guys, but it isn't looking good in my opinion. I think Indy Air proved that 50 seat jets cannot make money on there own.

 

[The_Russian]

By golly, I think you may be right! Turbo props make money, baby!

 

[captjim]

I heard the load factors have been very light for the new operation. VERY light.

Priceline, orbits,travelosity, travel agent, etc are coming on board, it'll change already has.

Is there a plan in place to scale it back if it doesn't work? XJT cannot go on for very long flying empty planes.

We have 205 aircraft working for CAL, 10 for DAL, 15 Charter, I'm not worried. Not worried anyway flying is my hobby sense I have a biz on the side.

Also, I would imagine that they are getting stiff competition from about all angles - American Eagle, Horizon, CAL, Southwest.

Horizon and Eagle, again not worried we have a great product.

Good luck to those guys, but it isn't looking good in my opinion. I think Indy Air proved that 50 seat jets cannot make money on there own.

Time will tell, again I'm not worried.

 

[SkyNation]

they JUST got going. I'm sure they have a plan in place that will take many months to get to where they want it to be.

 

[Flyby1206]

Horizon and Eagle, again not worried we have a great product.

I really do hope that it works out for XJT, and I am sure their product is great, but how many customers will pay more for a better product when it comes to air travel? If XJT is $300 to go from San Diego to Kansas City, and AA is 299 to go SAN-DFW-MCI then who will get the customer? I think the general public only cares about price.

 

[John Pennekamp]

I really do hope that it works out for XJT, and I am sure their product is great, but how many customers will pay more for a better product when it comes to air travel? If XJT is $300 to go from San Diego to Kansas City, and AA is 299 to go SAN-DFW-MCI then who will get the customer? I think the general public only cares about price.

In your example, I think most would pay that extra buck for a direct flight, and save the aggravation of an hour layover in DFW with an airplane change.

 

[Non Union]

I really do hope that it works out for XJT, and I am sure their product is great, but how many customers will pay more for a better product when it comes to air travel? If XJT is $300 to go from San Diego to Kansas City, and AA is 299 to go SAN-DFW-MCI then who will get the customer? I think the general public only cares about price.

I agree. And throw in the frequent flyer programs that XJT is competing against, I think most people will choose the cheaper, well known airline with a frequent flyer program.

Part of me is just flabergasted that the bosses running XJT actually think this will work.

 

[BluDevAv8r]

I think Indy Air proved that 50 seat jets cannot make money on there own.

Besides the fact both use(d) 50 seat jets, what other similarities do you see in the two operations?

-Neal

 

[dnkt]

Heard they plan on no profits for the first three years. In reality, Continental are the ones that are funding the whole project.

 

[gkrangers]

I agree. And throw in the frequent flyer programs that XJT is competing against, I think most people will choose the cheaper, well known airline with a frequent flyer program.

Part of me is just flabergasted that the bosses running XJT actually think this will work.

What other choice do they have?

 

[Non Union]

Besides the fact both use(d) 50 seat jets, what other similarities do you see in the two operations?

-Nela

Nela,

Besides the goofy paint jobs and fearless leaders? I'll have to think about it a little.

What percentage of a chance do you give them that they will remain a viable going concern?

 

[BluDevAv8r]

Besides the goofy paint jobs and fearless leaders? I'll have to think about it a little.

What percentage of a chance to you give them that they will remain a viable going concern?

My guess on a percentage chance is no different than someone throwing a dart at a wall blind-folded. I do know the leadership team incredibly well and they are far from fearless or reckless. They have been analyzing this operation for well over 3 years.

The differences between the two operations are extensive but here is the reader's digest version. FlyI waged the viability of its entire company on the FlyI operation. They even went so far as to get more jets in the form of A319's. XJT is only using 44 of 269 jets on this operation. FlyI ran a hub and spoke operation, limiting daily utilization (downtime is expensive for jets). XJT is running point to point operations with limited aircraft sit time. FlyI attempted to operate in the very competitive northeastern corridor and also right smack in the middle of United's hub, IAD. XJT is running all over the country and not going head to head on any direct routes with a legacy or LCC carrier.

I could go on but I won't....the similarities stop with the size jet used. Period. Does that mean XJT is destined for greatness with their plan? I have no clue. But I do know that comparing XJT to FlyI is patently wrong.

-Neal

 

[cale42]

Is is true 20 of the initial 24 cities are SWA cities??

I thought that seemed like playing with fire to start the way..

will be interesting to see.

cale

 

[jonjuan]

Heard they plan on no profits for the first three years. In reality, Continental are the ones that are funding the whole project.

You mean the XJT pilots are funding the project. I'm sure Kellner is still overpaid.
Regarding price and times, I see XJT offering a $183 non-stop RT ONT-AUS April 23, 23. Outbound is 0700-1200, return 0800-0918. Pretty darn good times for a business traveler.
Let's see-AA is $954 for a 0625-1325 thru DFW with a 0705-1100 return. Sure the price would come down to $700 of you traveled in the middle of the day with a longer layover. Who can justify that price difference just to get FF miles?
CAL is $476 for a 0615-1441 flight thru IAH and a 0540 (uggh)-1055 return. Again, a 3 hour trip for much less than half with no layover. AA is 5-hours, 4 times the price and incolves flying thru DFW.
WN is $418, thru PHX 0810-1440 and return, 0640-1000. Savings of over 2-hours at less than 1/2 the price. Mr. business traveler will "want to get away" from WN with these time and price differences. Same goes with every other WN route. Same or cheaper price and hours of time savings.
Even if a business traveler doesn't mind the 2 additional hours with the layover, most corporate travel departments will not allow the price difference. Once more and more folks see that they are the only non-stop option at very reasonable fares, they will garner more business, IMO.

 

[veneratio]

The loads are light but after 4 days of operation I heard that the loads are a little higher than management predicted by this time. Some planes have been filled with a 70 to 80 percent load factor. Anytime you start a new operation you will be in the RED. I guess time will tell...