ExpressJet Misconception?

[Flyer1015]

I was under the assumption that CAL cannot reduce the number of jets in 2007.

But:

Browsing through the Annual Report for 2003 (the latest year posted) on XJT's website,

http://media.corporate-ir.net/media_files/irol/13/130007/reports/ar2003.pdf

Page 7 excerpt:

The capacity purchase agreement also provides that Continental has the right to reduce the number of our regional jets covered by the agreement at any time, provided that we have received at least 12 months notice. Under the agreement, Continental is entitled to withdraw capacity with respect to:

​

​

• any regional jets subject to firm orders that Embraer has not delivered to us before the effective date of the reduction in capacity; and
​

•​

​

up to 25%, over any rolling three-year period, of our regional jets that have been delivered.


If Continental removes regional jet aircraft from the terms of the agreement, we will have the option to:

​

•​

​

fly the released aircraft for another airline or under our own code, subject to our ability to obtain facilities, such as gates, slots, and our exclusive arrangement with Continental at its hub airports; or ​

•​

​

decline to fly these aircraft and cancel the related subleases with Continental.​

********************************

25% over a 3 year period. So does that mean from 2007-2010, CAL might remove 25% of the jets from 274... 25 percent = 68.5 jets. CAL could remove 69 jets, for a total of 205... and give the rest of the flying to either CHQ, Mesa, etc ???

Am I reading this right ? I have no intention of starting some kinda war here, I'm just trying to get the facts straight.

 

[SEFlyer]

I was under the assumption that CAL cannot reduce the number of jets in 2007.

But:

Browsing through the Annual Report for 2003 (the latest year posted) on XJT's website,

http://media.corporate-ir.net/media_files/irol/13/130007/reports/ar2003.pdf

Page 7 excerpt:

The capacity purchase agreement also provides that Continental has the right to reduce the number of our regional jets covered by the agreement at any time, provided that we have received at least 12 months notice. Under the agreement, Continental is entitled to withdraw capacity with respect to:


​

​

• any regional jets subject to firm orders that Embraer has not delivered to us before the effective date of the reduction in capacity; and

​

•​

​

up to 25%, over any rolling three-year period, of our regional jets that have been delivered.



If Continental removes regional jet aircraft from the terms of the agreement, we will have the option to:


​

•​

​

fly the released aircraft for another airline or under our own code, subject to our ability to obtain facilities, such as gates, slots, and our exclusive arrangement with Continental at its hub airports; or ​

•​

​

decline to fly these aircraft and cancel the related subleases with Continental.​

********************************

25% over a 3 year period. So does that mean from 2007-2010, CAL might remove 25% of the jets from 274... 25 percent = 68.5 jets. CAL could remove 69 jets, for a total of 205... and give the rest of the flying to either CHQ, Mesa, etc ???

Am I reading this right ? I have no intention of starting some kinda war here, I'm just trying to get the facts straight.

CAL can not take jets away from XJT, but they can reduce the flying they give XJT. THat's the difference.