ExpressJet July Traffic Falls 20% As DOT Looks Into Flight Delay
12 August 2009 - 12:09PM
Dow Jones News
ExpressJet Holdings Inc. (XJT), the U.S. airline operator at the
center of the latest furor over "stranded" passengers, on Tuesday
reported a 20% drop in July traffic, compared with a year
earlier.
The Houston-based regional made no comment in its traffic
release on the weekend incident, when a flight from its home base
to Minneapolis/St. Paul was diverted by bad weather, leaving
passengers stuck on the aircraft for six hours.
The flight reawakened the debate over a long-mooted "passenger
bill of rights" in the U.S. and, in an unusual move, saw
transportation secretary Ray LaHood question whether ExpressJet -
which operated the flight for the Continental Express arm of
Continental Airlines Inc. (CAL) - had violated any laws. The
incident also marks a blow for ExpressJet, which operates most of
Continental's regional services under a tougher contract after
almost losing its franchise a year ago.
It is looking at flying for other airlines and has also launched
a charter service aimed at companies and travelers to sports and
entertainment events. "Now our job is to introduce ourselves to the
rest of the industry," said chief executive Jim Ream in an
interview last week with Dow Jones.
ExpressJet's revenue passenger miles, a key industry metric,
rose 6.7% last month over June, in line with sector rivals. They
fell sharply from a year ago after shedding a contract to fly for
Delta Air Lines Inc. (DAL) and ending its own-brand scheduled
services. Network carriers have aggressively trimmed flying by
regional partners in the wake of the sharp decline in passengers
and average fares.
ExpressJet provides the bulk of regional service for
Continental, which also received a letter from LaHood asking what
happened to the Minneapolis flight, and what the carrier did to
mitigate the delay.
In a blog entry, the transportation secretary said that there
are no mandatory requirements for airlines in handling flight
delays, but said his department may introduce requirements as part
of a proposed rule-making. Some lawmakers are pushing for a
three-hour limit before passengers must be allowed off a delayed
aircraft.
"We will use the information Continental provides to help us
reach a decision about what direction to go in that rulemaking,"
said LaHood on his official blog.
The likelihood of action from DOT would appear to be increasing,
given its high-profile involvement in the Continental Express
flight. A similar and well-publicized incident in April involving a
Delta flight elicited neither a blog entry nor a published letter
to the carrier from LaHood.
Continental said it is co-operating with probes into the weekend
delay, while ExpressJet was not immediately available for further
comment.
-By Doug Cameron, , Dow Jones Newswires; 312-731-6910;
doug.cameron@dowjones.com
(Josh Mitchell contributed to this article)