Mesa set to bid for Continental Express service
Continental announced in December that it plans to take back 69 small jets from ExpressJet Holdings Inc., now the sole provider of the Continental Express service, and seek a lower-cost operator. Continental would be shifting 25 percent of the 274 planes purchased or leased for the commuter operation. The company didn't specify which carriers it would ask for bids.
After the Continental announcement, Goldman Sachs analyst Glenn Engel said he expects Continental may still reach agreement to keep the planes at ExpressJet.
"Ultimately, we believe that Continental and ExpressJet will reach a new agreement with lower margins for Continental and better and longer protection for ExpressJet, but we may not see any resolution until mid-2006," Engel said in a report.
In addition to Mesa, SkyWest Inc. and Republic Airways Holdings Inc. may bid to provide service for Continental as well. Mesa now provides commuter service for US Airways, Delta and United airlines. Its CEO, Jonathan Ornstein, was CEO of Continental Express in 1994.
Lisa Treon
1/3/2006
Mesa Air Group Inc. said it will bid to become a commuter carrier for Continental Airlines Inc. if Continental proceeds with a plan to hire a new partner.1/3/2006
Continental announced in December that it plans to take back 69 small jets from ExpressJet Holdings Inc., now the sole provider of the Continental Express service, and seek a lower-cost operator. Continental would be shifting 25 percent of the 274 planes purchased or leased for the commuter operation. The company didn't specify which carriers it would ask for bids.
After the Continental announcement, Goldman Sachs analyst Glenn Engel said he expects Continental may still reach agreement to keep the planes at ExpressJet.
"Ultimately, we believe that Continental and ExpressJet will reach a new agreement with lower margins for Continental and better and longer protection for ExpressJet, but we may not see any resolution until mid-2006," Engel said in a report.
In addition to Mesa, SkyWest Inc. and Republic Airways Holdings Inc. may bid to provide service for Continental as well. Mesa now provides commuter service for US Airways, Delta and United airlines. Its CEO, Jonathan Ornstein, was CEO of Continental Express in 1994.