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Continental Airlines
has selected Chautauqua Airlines to operate up to 69 regional jets that will be withdrawn from its capacity purchase agreement with ExpressJet
Airlines and its parent, ExpressJet Holdings, should ExpressJet choose to return those aircraft to Continental.
ExpressJet is required to notify Continental by
28 September 2006 whether it will return any or all of the aircraft to Continental, or continue to sublease the aircraft at
increased lease rates from Continental and fly them outside of Continental’s hubs under a brand other than Continental Express, as permitted by the capacity purchase
agreement.
Chautauqua, a subsidiary of Republic Airways Holdings, will operate any aircraft returned by ExpressJet as a second Continental Express carrier
at each of Continental’s domestic hubs – Newark Liberty, Houston and Cleveland.
“We are very pleased to be joining the Continental team,” said Bryan Bedford, chairman, president and CEO of Republic Airways Holdings, parent company of
Chautauqua Airlines. “Chautauqua Airlines has a long tradition of quality service and we look forward to delivering our award winning service to Continental
customers.”
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