ExpressJet Holdings reported that it reached tentative agreements with all four of its labor unions representing the pilots and instructors, mechanics, flight attendants and dispatchers. Voting is scheduled to be completed by November 1. If ratified, ExpressJet expects to realize $20 million in labor cost savings needed under the amended capacity purchase agreement with Continental Airlines, Inc. that became effective on July 1, 2008. The $5 million in remaining labor savings will be provided through wage and benefit reductions, as well as increases in productivity, within the airport services division.
If ratified, the agreements will become effective immediately and become amendable in December 2010 for pilots and instructors, August 2009 for mechanics, August 2010 for flight attendants and July 2009 for dispatchers.
