TEXAN AVIATOR
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- Oct 21, 2002
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Stole this from an ExpressJet pilots forum:
From the Nov 2005 Airline Pilot Careers Magazine
In an industry where several companies are sinking fast, treading water is not such a bad thing. The aquatic metaphors notwithstanding, ExpressJet Holdings, Inc. seems to be in as good a position as any other regional carrier as it looks toward the future, with many new aircraft orders and a strong hiring schedule for the upcoming year.
COMPANY PROFILE
Operating as Continental Express, the regional carrier for Continental Airlines, ExpressJet Airlines, Inc. offers regional jet service to approximately 152 destinations in the United States, Canada, Mexico and the Caribbean. ExpressJet operates all of Continental’s regional service from its hubs in Houston, New York/Newark and Cleveland, and additional non-hub service. Flights are carried out with a fleet of 264 regional jets, consisting of the 37-seat ERJ-135, the 50-seat ERJ-145 and the 50-seat ERJ-145XR. The airline, owned by ExpressJet Holdings, Inc, employs approximately 6,800 people and is headquartered in Houston.
The carrier’s lineage is diverse—an amalgamation of several smaller airlines purchased by Continental, including Bar Harbor Airlines in Maine, Provincetown-Boston Airlines (PBA) in New England, Rocky Mountain Air from Denver, Colorado and Britt Airways from Texas. The new airline began operating as Continental Express in January 1989 and was later acquired by Continental Airlines. It became ExpressJet and subsequently the operating subsidiary of ExpressJet Holdings, Inc. following an initial public offering in April 2002.
Prior to 9/11, Continental was already making plans to transform Continental Express into an independent entity—but the terrorist attacks and the ensuing effect on the economy hastened the process. In 2002, the spin-off gradually began; today Continental now owns just 8.5 percent of the regional carrier.
In many ways, 2005 has been an eventful year for ExpressJet. In January, ExpressJet President and CEO Jim Ream presented an update on the airline at the Raymond James & Associates Growth Airline Conference in New York City to present the company to individual and corporate investors attracted to airline stocks. In the first quarter, the airline took delivery of several new Embraer 145XR planes, and announced daily nonstops between LAX and three destinations in Mexico: Aguascalientes, Guanajuato, and Morelia. First quarter net income was $23.3 million, or $0.39 diluted earnings per share.
Mid-year, the company’s board of directors authorized the repurchase of up to $30 million of the company’s common stock, with the expectation that purchases would be made from time to time in the open market or in privately negotiated transactions. According to Ream, the stock buyback program was intended to strengthen stockholder value and take advantage of ExpressJet’s financial and operational strength. ExpressJet reported second quarter net income of $24.3 million, or $0.41 diluted earnings per share. The company has continued to maintain its strong operating performance and cost controls while expanding its operations and RJ fleet.
During the second quarter of 2005, the company’s ExpressJet Airline subsidiary achieved a 13 percent increase in block hours over the same period in the prior year, and maintained excellent operations with a 99.9 percent controllable completion factor, which excludes cancellations due to weather and air traffic control.
Despite the fact that Hurricane Rita resulted in 1,296 cancelled flights at the end of September, the carrier posted relatively strong third quarter, reporting net income of $25.5 million, or $0.43 per diluted share. Ream credited the team effort displayed in the wake of the weather disasters: “Everyone at ExpressJet did a great job quickly recovering the system after the impacts of Hurricanes Katrina and Rita, which affected five ExpressJet stations and our operations in Continental’s Houston hub.”
That month, ExpressJet revenue passenger miles (RPMs) totaled 671.4 million, up 16.3 percent over September 2004, and available seat miles (ASMs) increased by 8.4 percent compared with September 2004. ExpressJet’s September load factor was 74.2 percent, a 5-point increase over September 2004. The company flew 60,122 block hours, compared with 56,892 block hours in September 2004 (an increase of about 5.7%), and operated 34,602 departures, roughly 7.1% up from the 32,318 departures in September 2004.
Also in September 2005, ExpressJet operated at a 97.3 percent controllable completion factor. This was below the contractual benchmark of 99.5 percent and resulted in ExpressJet making a payment to Continental Airlines under the companies’ capacity purchase agreement.
During the course of the year, the company continued to take delivery of the ERJ-145s on schedule and the pilot hiring schedule increased.
GOING FARTHER
The company added two more ERJ-145XRs to its fleet during the month of October, increasing the total fleet to 263 jets, and plans to add one to two per month through the first half of 2006. ExpressJet spokesperson Kristy Nicholas says that there are options for 100 more XRs. The extra distance allowed by the XR (400 miles further than the 145ER and LR versions) has allowed the company to add cities like Bakersfield, Calif., to their route system, she says.
In addition, ExpressJet is aggressively adding routes throughout Mexico—the company currently serves over 30 cities south of the border—and was in fact chosen as the “Best Airline for Flights to Mexico” by Executive Travel magazine. ExpressJet has also been listed in Hispanic magazine’s list of 100 Best Companies for Hispanics.
To increase its income beyond the scope of just its regional carrier business, the company has aggressively pursued additional revenue streams through three affiliates: ExpressJet Services LLC, ExpressJet Training Services, and Wing Aviation, a private charter company. Wing Aviation operates a fleet consisting of Gulfstream (the 14-seat 11SP and 11B models and the 12-seat 11SP), the King Air 200, Astra 1125, Challenger 600, and Embraer Legacy. In August, ExpressJet announced that ExpressJet Services received a repair station certificate from the FAA. As Vice President of Flight Operations and Maintenance, Jim Nides, explains: “A third-party repair station certificate allows us to pursue a strategy that leverages our strengths in aircraft maintenance. ExpressJet Airlines is one of the world’s largest regional airline with a first-class maintenance organization that can now provide reliability and engineering expertise to others through ExpressJet Services.”
GROWTH SUPPORTS HIRING
The pilot hiring outlook is fairly bright for ExpressJet throughout 2006. Nicholas notes that the company anticipates hiring an average of 32 pilots per month throughout 2006 (roughly 384 for the year) to support this expansion.
So exactly what kind of person is ExpressJet looking for? Here’s what Nides has to say on that: “In a word: reliable. We’ve figured out the mechanical reliability of the aircraft. Human reliability is the other major component/system on the aircraft that must function as predictably as the mechanical systems.”
“We want a pilot who is safe, reliable and not only operates the aircraft efficiently,” Nides continues, “but also exhibits sound judgment and rational thinking towards the significant impact he or she has on the overall business of running an airline. Whether it is fuel conservation practices or customer service issues, a pilot must be able to act and react to the challenges facing the industry they have chosen for a career. We’re telling our pilots that, now more than ever before, they are strategic partners in the business—much more than an employee who operates the airplane.”
The initial training program consists of 15 days of ground training covering the company’s operational rules and procedures, systems training and specialized training areas. This includes five Flight Training Device (FTD) sessions, followed by an oral equipment exam. Next comes six training sessions in the full motion Level D simulator, and then a proficiency check and a line oriented flight training session. Initial operating experience (IOE) is then completed (typically 35 hours of line flying with a line check airman).
ExpressJet also requires recurrent training throughout its FAA approval program. First officers attend three days of recurrent ground training, one simulator proficiency check and complete an online training program. Similar courses are used for captain upgrade training and re-qualification training. As a regular part of ExpressJet’s comprehensive pilot training, pilots are required to spend 36 hours in flight simulators. In addition to those requirements, captains must complete an additional simulator proficiency check and an annual line check.
CONTRACT NEWS
Late last year, ExpressJet Airlines pilots represented by the Air Line Pilots Association (ALPA) ratified a new labor agreement. The new agreement currently covers approximately 2,200 pilots and becomes amendable December 1, 2008.
As a result, contract matters should not be an issue for the airline for several years. Says Nides, “The relationship we have with ALPA is excellent. We work out our differences before they get out of control. We have every reason to believe that our next contract negotiations will be as smooth as the last. Negotiations always take longer than we think they should.”
He adds, “We tried our best to get to the final solution as quickly as possible last time. We’ll try again next time as well.”
A BIG FISH IN THE REGIONAL POND
As the investment company, Hoovers, Inc. says, “ExpressJet Holdings flies where no big jet can afford to go.” It seems the company is going up, up—and if you’ve got the right stuff, your career can soar to new heights.
From the Nov 2005 Airline Pilot Careers Magazine
In an industry where several companies are sinking fast, treading water is not such a bad thing. The aquatic metaphors notwithstanding, ExpressJet Holdings, Inc. seems to be in as good a position as any other regional carrier as it looks toward the future, with many new aircraft orders and a strong hiring schedule for the upcoming year.
COMPANY PROFILE
Operating as Continental Express, the regional carrier for Continental Airlines, ExpressJet Airlines, Inc. offers regional jet service to approximately 152 destinations in the United States, Canada, Mexico and the Caribbean. ExpressJet operates all of Continental’s regional service from its hubs in Houston, New York/Newark and Cleveland, and additional non-hub service. Flights are carried out with a fleet of 264 regional jets, consisting of the 37-seat ERJ-135, the 50-seat ERJ-145 and the 50-seat ERJ-145XR. The airline, owned by ExpressJet Holdings, Inc, employs approximately 6,800 people and is headquartered in Houston.
The carrier’s lineage is diverse—an amalgamation of several smaller airlines purchased by Continental, including Bar Harbor Airlines in Maine, Provincetown-Boston Airlines (PBA) in New England, Rocky Mountain Air from Denver, Colorado and Britt Airways from Texas. The new airline began operating as Continental Express in January 1989 and was later acquired by Continental Airlines. It became ExpressJet and subsequently the operating subsidiary of ExpressJet Holdings, Inc. following an initial public offering in April 2002.
Prior to 9/11, Continental was already making plans to transform Continental Express into an independent entity—but the terrorist attacks and the ensuing effect on the economy hastened the process. In 2002, the spin-off gradually began; today Continental now owns just 8.5 percent of the regional carrier.
In many ways, 2005 has been an eventful year for ExpressJet. In January, ExpressJet President and CEO Jim Ream presented an update on the airline at the Raymond James & Associates Growth Airline Conference in New York City to present the company to individual and corporate investors attracted to airline stocks. In the first quarter, the airline took delivery of several new Embraer 145XR planes, and announced daily nonstops between LAX and three destinations in Mexico: Aguascalientes, Guanajuato, and Morelia. First quarter net income was $23.3 million, or $0.39 diluted earnings per share.
Mid-year, the company’s board of directors authorized the repurchase of up to $30 million of the company’s common stock, with the expectation that purchases would be made from time to time in the open market or in privately negotiated transactions. According to Ream, the stock buyback program was intended to strengthen stockholder value and take advantage of ExpressJet’s financial and operational strength. ExpressJet reported second quarter net income of $24.3 million, or $0.41 diluted earnings per share. The company has continued to maintain its strong operating performance and cost controls while expanding its operations and RJ fleet.
During the second quarter of 2005, the company’s ExpressJet Airline subsidiary achieved a 13 percent increase in block hours over the same period in the prior year, and maintained excellent operations with a 99.9 percent controllable completion factor, which excludes cancellations due to weather and air traffic control.
Despite the fact that Hurricane Rita resulted in 1,296 cancelled flights at the end of September, the carrier posted relatively strong third quarter, reporting net income of $25.5 million, or $0.43 per diluted share. Ream credited the team effort displayed in the wake of the weather disasters: “Everyone at ExpressJet did a great job quickly recovering the system after the impacts of Hurricanes Katrina and Rita, which affected five ExpressJet stations and our operations in Continental’s Houston hub.”
That month, ExpressJet revenue passenger miles (RPMs) totaled 671.4 million, up 16.3 percent over September 2004, and available seat miles (ASMs) increased by 8.4 percent compared with September 2004. ExpressJet’s September load factor was 74.2 percent, a 5-point increase over September 2004. The company flew 60,122 block hours, compared with 56,892 block hours in September 2004 (an increase of about 5.7%), and operated 34,602 departures, roughly 7.1% up from the 32,318 departures in September 2004.
Also in September 2005, ExpressJet operated at a 97.3 percent controllable completion factor. This was below the contractual benchmark of 99.5 percent and resulted in ExpressJet making a payment to Continental Airlines under the companies’ capacity purchase agreement.
During the course of the year, the company continued to take delivery of the ERJ-145s on schedule and the pilot hiring schedule increased.
GOING FARTHER
The company added two more ERJ-145XRs to its fleet during the month of October, increasing the total fleet to 263 jets, and plans to add one to two per month through the first half of 2006. ExpressJet spokesperson Kristy Nicholas says that there are options for 100 more XRs. The extra distance allowed by the XR (400 miles further than the 145ER and LR versions) has allowed the company to add cities like Bakersfield, Calif., to their route system, she says.
In addition, ExpressJet is aggressively adding routes throughout Mexico—the company currently serves over 30 cities south of the border—and was in fact chosen as the “Best Airline for Flights to Mexico” by Executive Travel magazine. ExpressJet has also been listed in Hispanic magazine’s list of 100 Best Companies for Hispanics.
To increase its income beyond the scope of just its regional carrier business, the company has aggressively pursued additional revenue streams through three affiliates: ExpressJet Services LLC, ExpressJet Training Services, and Wing Aviation, a private charter company. Wing Aviation operates a fleet consisting of Gulfstream (the 14-seat 11SP and 11B models and the 12-seat 11SP), the King Air 200, Astra 1125, Challenger 600, and Embraer Legacy. In August, ExpressJet announced that ExpressJet Services received a repair station certificate from the FAA. As Vice President of Flight Operations and Maintenance, Jim Nides, explains: “A third-party repair station certificate allows us to pursue a strategy that leverages our strengths in aircraft maintenance. ExpressJet Airlines is one of the world’s largest regional airline with a first-class maintenance organization that can now provide reliability and engineering expertise to others through ExpressJet Services.”
GROWTH SUPPORTS HIRING
The pilot hiring outlook is fairly bright for ExpressJet throughout 2006. Nicholas notes that the company anticipates hiring an average of 32 pilots per month throughout 2006 (roughly 384 for the year) to support this expansion.
So exactly what kind of person is ExpressJet looking for? Here’s what Nides has to say on that: “In a word: reliable. We’ve figured out the mechanical reliability of the aircraft. Human reliability is the other major component/system on the aircraft that must function as predictably as the mechanical systems.”
“We want a pilot who is safe, reliable and not only operates the aircraft efficiently,” Nides continues, “but also exhibits sound judgment and rational thinking towards the significant impact he or she has on the overall business of running an airline. Whether it is fuel conservation practices or customer service issues, a pilot must be able to act and react to the challenges facing the industry they have chosen for a career. We’re telling our pilots that, now more than ever before, they are strategic partners in the business—much more than an employee who operates the airplane.”
The initial training program consists of 15 days of ground training covering the company’s operational rules and procedures, systems training and specialized training areas. This includes five Flight Training Device (FTD) sessions, followed by an oral equipment exam. Next comes six training sessions in the full motion Level D simulator, and then a proficiency check and a line oriented flight training session. Initial operating experience (IOE) is then completed (typically 35 hours of line flying with a line check airman).
ExpressJet also requires recurrent training throughout its FAA approval program. First officers attend three days of recurrent ground training, one simulator proficiency check and complete an online training program. Similar courses are used for captain upgrade training and re-qualification training. As a regular part of ExpressJet’s comprehensive pilot training, pilots are required to spend 36 hours in flight simulators. In addition to those requirements, captains must complete an additional simulator proficiency check and an annual line check.
CONTRACT NEWS
Late last year, ExpressJet Airlines pilots represented by the Air Line Pilots Association (ALPA) ratified a new labor agreement. The new agreement currently covers approximately 2,200 pilots and becomes amendable December 1, 2008.
As a result, contract matters should not be an issue for the airline for several years. Says Nides, “The relationship we have with ALPA is excellent. We work out our differences before they get out of control. We have every reason to believe that our next contract negotiations will be as smooth as the last. Negotiations always take longer than we think they should.”
He adds, “We tried our best to get to the final solution as quickly as possible last time. We’ll try again next time as well.”
A BIG FISH IN THE REGIONAL POND
As the investment company, Hoovers, Inc. says, “ExpressJet Holdings flies where no big jet can afford to go.” It seems the company is going up, up—and if you’ve got the right stuff, your career can soar to new heights.