ExpressJet plots standalone status, new service in April

ExpressJet, which used to fly solely for Continental as Continental Express, started selling tickets Feb. 1 under its own brand name for new nonstop, 50-seat regional jet service between small and midsize communities.

ExpressJet began the sales on its Web site at www.xjet.com and contracted with Alpine Access to allow at-home reservations agents to begin taking phone bookings at the same time.

But ExpressJet also is planning a big travel agent push, sending representatives this week to meet with agents in the 24 start-up cities to sell them on the new air travel option, airline spokeswoman Kristy Nicholas said.

"We just want to tap into the involvement they have in the community and the networks they have in the community and explain what we're offering," Nicholas said. "We're trying to do things that save their customers time on their trips and also offer a nice onboard product."

Nicholas said the airline has reached agreements or is in the final stages of negotiations with all of the major GDSs, and agent sales should start by March. But she said it would not pay commissions.

A spring start for service

ExpressJet said its branded service to 24 cities in the West, Midwest and Southeast would begin in April and May, using 44 Embraer 145 aircraft (see chart for cities). The service will feature free XM satellite radio, advanced seat assignments, no middle seats and complimentary snacks and meals on longer flights.

"We're not trying to be low cost," Nicholas said. "The basic strategy is to connect communities that have not had good service since deregulation."

She said ExpressJet's fares would be competitive with the prices travelers are paying for connecting service on other airlines.

The marketing push included the Web site launch, local advertising, signage and same-day press conferences in all 24 cities.

Nicholas said ExpressJet had been studying the branded-service option for three years. But the big push came after Continental sent back to ExpressJet 69 aircraft it no longer wanted for Continental Express service.

ExpressJet still is flying 205 aircraft as Continental Express.

Of those 69 returned aircraft, ExpressJet decided to use 15 for corporate charters.It sought to use some of the aircraft in feeder service for Midwest, but that carrier instead selected Skywest to operate up to 25 regional jets from Midwest's hubs in Milwaukee and Kansas City beginning in April.

That left ExpressJet looking for another use for the aircraft.

Success is not a given. In June 2004, regional carrier Atlantic Coast Airlines relaunched as a go-it-alone airline called Independence Air.  It liquidated in January 2006.

The ExpressJet service, however, will start with several differences.

When Atlantic Coast launched as Independence Air, it gave up its code-share relationship with United. ExpressJet still flies most of its aircraft as Continental Express (which is why its branded service cannot fly to the Continental hubs at Houston, Newark and Cleveland).

Independence offered ultra-low fares even though it flew 50-seat regional jets that weren't considered cost-efficient enough. Independence also had so many of the jets that it felt compelled to operate multiple flights to small markets, and it faced fierce competition from United at Dulles.

ExpressJet's branded service won't be low fare, it plans fewer frequencies and it has chosen routes where it won't be competing against any other nonstop service, at least initially.

To contact reporter Andrew Compart, send e-mail to [email protected].