ExpressJet Ending its Delta Connection

Atlanta-based ExpressJet Airlines has outlined plans to terminate its capacity purchase agreement (CPA) with Delta Air Lines.

The carrier, a wholly-owned subsidiary of SkyWest Airlines, said it had come to a “mutual” agreement to start winding down its remaining dual-class flying under the Delta Connection brand, allowing it to place aircraft with other partners.  The CPA was originally due to expire in 2019.

ExpressJet operates 28 Bombardier CRJ900s and 33 CRJ700s under the Delta Connection brand, with all the aircraft financed by the SkyTeam carrier (28 CRJ900s and three CRJ700s) transferring to Endeavor Air, a wholly owned Delta subsidiary, from Q4 this year.  ExpressJet expects to transition the remaining aircraft operated under the agreement to other airline partners next year.

In a statement outlining its long-term strategy, ExpressJet announced a new five-year extension to its Embraer 145 agreement with United Airlines, which comes into force as of January 1.  The financial terms of the new deal have not been disclosed.

ExpressJet has also reached an agreement with American for eight additional CRJ700s.  The jets are expected to move to the carrier’s American Eagle operation during Q2 2018.

“Today’s announcement provides structural strength, visibility and positive momentum to ExpressJet Airlines,” said Chip Childs, Chief Executive Officer of SkyWest.  “Our objective to provide a strong and successful foundation for the people of ExpressJet is central to our strategy.  The execution of these new agreements is essential to finally getting ExpressJet to long-term success and profitability.”