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ExpressJet, US regional airline operator, files for bankruptcy

WILMINGTON, Del. –

Nevada-based discount airline aha! stopped flying after its parent airline, ExpressJet Airlines, filed for bankruptcy protection and said it would sell its assets.

ExpressJet said it faced lower-than-expected revenue due to weakening travel demand with new COVID-19 variants. It also said it was burdened with high costs, especially for jet fuel.

The Atlanta-area company filed Tuesday for protection in federal bankruptcy court in Delaware.

Aha! flew to about a dozen West Coast cities from its base in Reno, Nevada. A notice on Tuesday on the airline’s website said the airline was unable to assist stranded travelers with other travel arrangements and that customers booking future flights should contact the credit card company. their use for a refund.

ExpressJet, based in the Atlanta area, was founded in 1986 from several small commuter airlines. For many years, it flew smaller aircraft as a regional carrier for Continental, JetBlue, American and United. In 2020, United Airlines removed its planes from ExpressJet, wiping out the company’s revenue. ExpressJet reinvents itself in 2021 as a charter and operator airline aha!, representing aviation, hospitality and adventures.

In the application, a company executive said ExpressJet had stopped all operations, including charter flights, and laid off most of its staff and would return its planes to rental companies. .

According to the bankruptcy filing, ExpressJet is owned by ManaAir LLC, a joint venture of KAir Enterprises and MNBS Associates.

The largest debt on record is an unsecured $10 million debt owed by the U.S. Small Business Administration under the paycheck protection program the government launched to help businesses hit damage caused by the pandemic. It owes $3.9 million for a pandemic relief loan made by the Treasury Department.

ExpressJet says it has 1,300 pilots currently in training. It plans to try to sell operating certificates it received from federal regulators.

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