ExpressJet reaches deal to slow jet deliveries

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ExpressJet reaches deal to slow jet deliveries  =

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Wednesday February 12, 5:10 PM EST =


CHICAGO, Feb 12 (Reuters) - Regional air carrier ExpressJet Airlines (XJT=
) said on Wednesday it has reached a tentative agreement with Continental=
 Airlines (CAL) and Embraer (EMBR3) to slow the pace of regional jet deli=
veries.

The revised plan, which reschedules delivery of 60 of ExpressJet's remain=
ing 78 firm orders from Embraer, is expected to hurt ExpressJet's 2003 ea=
rnings per share by 2 cents to 4 cents, the company said. ExpressJet said=
 it now expects 2004 earnings per share to be off by 16 cents to 18 cents=
 versus estimates under its previous fleet plan.

Under the new terms, ExpressJet will reduce its scheduled deliveries of E=
mbraer ERJ-145XR regional jets in 2003 to 36 from its original plan for 4=
8 deliveries. It will also take 21 aircraft deliveries in 2004, down from=
 36.

The amended delivery schedule increases ExpressJet's aircraft deliveries =
to 21 in 2005, up from two, and pushes eight aircraft deliveries to 2006.=


ExpressJet said Continental proposed changes to the agreements as the air=
line struggles to deal with more industry capacity than demand. In exchan=
ge for the deferred deliveries, Continental extended ExpressJet's guarant=
ee as the exclusive provider of regional jet service in its hubs by one y=
ear, to Jan. 1, 2007. =



=A92003 Reuters Limited. =


Roger
EWROPS

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