ExpressJet Goes Bankrupt in Wake of Split From United Airlines
ExpressJet Airlines, a small regional carrier that was once among the world’s biggest by fleet size, filed for bankruptcy with plans to liquidate after ceasing operations.
The company, based in Georgia, listed assets and liabilities of no more than $50 million each in its bankruptcy petition. ExpressJet laid off most of its workforce prior to filing for bankruptcy, according to court papers.
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The carrier struggled to scale its operations after losing a contract to fly for United Airlines Holdings Inc. in 2020, court papers show. It shut down for about a year after losing the deal, then grappled with lower travel demand and rising fuel costs after re-launching.
ExpressJet plans to sell off assets piecemeal in order to repay creditors. Its assets include aircraft parts and an airline operating certificate.
ExpressJet was as of early 2020 the world’s largest operator of Embraer ERJ145 aircraft, all of which were leased from United. The collapse of their deal meant the company had to return all of its planes.
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United owned nearly half of ExpressJet before quietly selling the stake earlier this year, Bloomberg reported.
The company last year re-launched with a leisure travel brand, aha!, which carried passengers to and from Reno, Nevada. ExpressJet generated revenue of $5.5 million on expenses of $23.3 million through the first seven months of 2022. The carrier most recently operated just four aircraft.
ExpressJet’s largest unsecured debts include a Paycheck Protection Program loan of $10 million and a CARES Act loan of about $4 million, court papers show.
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