I’m telling you, the email bin is simply a never-ending source of strange and interesting news these days.

Tonight we find out that ExpressJet and Continental have apparently kissed and made up. SkyWest is, apparently, now, just a former potential suitor, thrown on the rockpile of other discarded airline flirtations.

Continental Airlines said late today that it has reached a new seven-year capacity purchase agreement with ExpressJet Airlines to provide regional jet service for Continental Airlines at rates that are lower than rates under its current agreement and more competitive with those offered by other regional service providers. The new agreement is effective July 1, 2008.

The base agreement covers flying by ExpressJet of a minimum of 205 regional jets in the first year and a minimum of 190 regional jets thereafter.

But while the rates paid ExpressJet are lower, here is the nice part for ExpressJet — Continental has given ExpressJet the right to return 39 Embraer 50-seat regional jets that ExpressJet currently uses for non-Continental contract flying.

Continental plans to add the returned aircraft to the new agreement and withdraw from the agreement up to 30 of its Embraer 37-seat regional jets currently flown by ExpressJet for Continental.

Continental will then sublease or ground all of the withdrawn Embraer 37-seat regional jets to “better align regional capacity with current market conditions.”

Just a small bit of corporate speak there.

Additionally, the agreement will reduce the rent Continental currently charges ExpressJet on 30 other regional jets that ExpressJet will retain for seven years to fly at its own revenue risk.

Ticker: (NYSE:CAL), (Nasdaq: XJT), (Nasdaq:SKYW)

Technorati Tags: airlines, Continental Airlines, ExpressJet, SkyWest

What do they say? When times get tough, it’s gallows humor that comes to the rescue?

Taking that frame of reference, a reader sent me a note this afternoon from an Allied Pilots’ Association missive. (The APA represents the pilots at American Airlines.)

According to internal moles at the APA, Chairman and CEO Gerard Arpey chose not to fly on an American Airlines’ aircraft when he recently traveled to San Juan.  (Yes, the trip was for business, not leisure.)

Frankly, I personally don’t care what kind of aircraft Gerard flies on — but I had to tell you that piece of background information to get you to the punch line.

And now we’re here.

Here are the Top Ten Reasons Why Gerard Arpey Does Not Fly On American Airlines — thanks to the guys and gals at the Allied Pilots Association.

10. He refuses to fly on an airline that no longer offers peanuts.

9. Fearful he would be ejected in-flight by an angry mob of inconvenienced passengers.

8. Fearful he would be ejected in-flight by an angry mob of betrayed employees.

7. Fearful he would be ejected in-flight because his shoddy maintenance program results in a gaping fuselage hole.

6. Unlike any other passenger on American, he needs to arrive on time.

5. He refuses to pay the $15 bag fee.

4. On a private jet, he doesn’t have to bring a “food taster.”

3. AA employees have placed him on the “no fly” list.

2. He’s implementing a new marketing logo: “American Airlines — Service SO Bad, Even the CEO Won’t Fly With Us!”

(Editor’s Note: My choice would be, “American Airlines, We Know Why You Don’t Want to Fly!”

1. He isn’t worth the fuel it would cost to fly him there.

Oh my.

I like number 4, 5, 3, and 6 the best.

Ticker: (NYSE:AMR)

Technorati Tags: airline CEOs, airlines, American Airlines, Gerard Arpey

Speaking of management teams that simply don’t get it. Guess who? Thanks to a number of our United employee readers who felt compelled to send me a copy of this — from yesterday’s missive to United employees — following my last missive.  I can’t imagine why.

“Hi, it’s Glenn and it’s Wednesday, June 4, and I’m calling from Chicago to continue our communication of the actions necessary for us to successfully compete in an industry challenged by record high fuel prices and a softening economy.



As I mentioned in last week’s call, we are leveraging our discipline on capacity, taking aggressive action to put our aircraft where they have the best opportunity to earn a profit and addressing the need to size our business to the changing market. We are focused on reducing costs and improving revenue, both through fare and fee increases and by developing new sources of income.

Today we are announcing additional steps that reflect our commitment to and confidence in our action plan, setting us on a path to profitability and in line with the expectations the market has set for the industry overall.



Together with our solid platform of financial flexibility, built on a competitive cash balance, our significant unencumbered assets and the fact that we have no aircraft on order, these additional steps will enable us to compete more effectively – and ultimately more profitably – in this environment.”

Yeah boy. If I hear “leveraging our discipline on capacity” one more time….

To all of you with a good grasp of reality, I suggest you compare this to the verbiage in today’s Continental letter to employees, which was concise, clear, and pulled no stupid “corporate speak” punches.

<shaking my head>

Ticker: (Nasdaq:UAUA), (NYSE:CAL)

Attention Gerard Arpey, Glenn Tilton, and all other airline CEOs and/or Chairman and their respective boards of directors to whom this might apply.

Please make note of what management at Continental Airlines did today — as they announced plane groundings and employee cutbacks.

The airline also announced that CEO Larry Kellner and President Jeff Smisek will “decline their salaries for the remainder of the year and have declined any payment under the annual incentive program for 2008.”

Why is it that the management team at Continental Airlines does the right thing — consistently — in terms of their employees, while other management teams in this industry simply act as though they could care less?



Because the folks in Houston are great managers.

They understand people and what motivates them to come to work every day. And they understand that if those employees don’t have respect for the people they work for — if they don’t feel valued for their contributions to the company — that they won’t have a reason to come to work every day and do their best.

And those other guys….well…you fill in the blanks for yourself.

A special note of praise to Larry and Jeff this morning. It’s a shame we don’t have more guys like you in this industry.

You didn’t have to do what you did, but it says a lot that you did it anyway. 

Ticker: (NYSE:CAL)

Today Continental Airlines announced that it plans to cut a total of 21 aircraft from its fleet by the end of the year. The airline also plans to cut another 10 in 2009. The airline said that it forecasts that its total fleet will now shrink from 373 aircraft to a total of 344 by the end of 2009.

The airline is grounding 67 of its Boeing 737-300 and 737-500 aircraft. However, the airline will continue to take delivery of newer 737-800s and 737-900s — so the net impact will be less — a net reduction of about 31 aircraft — give or take.

On the job front, the airline announced it is going to cut about 3,000 employees, including some at the management level, although the airline said that it hopes it can eliminate most positions through voluntary buyouts. The airline said that details on the voluntary programs will be made available next week.

While some management and clerical positions will be eliminated sooner, most reductions will take place after the summer season.

The airline announced that it now expects to operate 16% fewer domestic mainline flights and reduce its domestic mainline capacity 11 percent% compared to the fourth quarter of 2007.

Ticker: (NYSE:CAL)

A quick search over at JetPhotos.net’s aircraft census database shows 94 active Boeing 737s in the United Airlines fleet. To peruse the list, click the link above and then select United, Boeing, 737, and check active, then click search. According to the database, the oldest active plane is a N301UA, a 737-322 delivered on Nov. 12, 1986. The newest plane of the soon-to-be-retired fleet is N942UA, a 737-522 delivered on Oct. 28, 1996.