ExpressJet is a large regional airline, formed by the consolidation of numerous small feeder airlines from around the United States. The company primarily operates as Continental Express, providing regional service to Continental's main hubs. The company also attempted to branch out in 2005, partnering with different airlines and even launching its own independent carrier. These efforts failed and were shut down by 2008. The company now operates a large charter business.
During the 1980s, Continental Airlines began to purchase regional airlines in order to serve its growing hubs with service to small cities. Continental ultimately purchased Bar Harbor Airlines, Provincetown-Boston Airlines, Rocky Mountain Air, Britt Airways, Pioneer Airways, Royale Airways, and Mid Pacific Airways. In 1986, these companies were merged together to form ExpressJet. Continental acquired full control in 1987.
In 2002, ExpressJet was spun off to Continental's shareholders through an IPO. ExpressJet was initially offered to the public at $16 a share. The financial transaction raised nearly $500 million for the airline. By 2006, it had become a major operator of regional aircraft.
In 2005, Continental dramatically reduced its contract with ExpressJet. Continental decided to reduce its regional service with ExpressJet by 69 aircraft. Instead of finding a partner carrier to operate these aircraft with, ExpressJet started its own independent airline. The airline, called ExpressJet, would link low competition, under-served cities with point-to-point traffic. Initially, the airline allocated 42 aircraft to the new venture. The airline-within-an-airline folded in September 2008, due to high fuel costs.
In 2007, ExpressJet began to service western ski destinations from Los Angeles on behalf of Delta Airlines. At its peak, ExpressJet operated 23 aircraft on behalf of Delta. In July 2008, the agreement was called off and service ceased in September. ExpressJet operated regional service for Denver-based Frontier Airlines. Service ended in December 2008. ExpressJet also temporarily operated a number of JetBlue routes in 2007 when some of its planes were retrofitted.
Today, ExpressJet is a major carrier for Continental Airlines, operating out of the carrier's three main hubs in Newark, Houston, and Cleveland. The company, along with its Continental operations, also runs a large corporate charter business.
