Aha! Ceases Operations, ExpressJet Liquidates

An airline that used to be a large one has just filed for Chapter 11.

ExpressJet files for bankruptcy

ExpressJet Airlines has filed for Chapter 11 protection and plans to enter into a court-supervised liquidation in the coming weeks.

For context, ExpressJet launched operations in the mid-1980s. Back in the day the airline was owned by Continental Airlines, though that changed over time. Up until the start of the pandemic, ExpressJet operated exclusively for United Express, which is United Airlines’ regional carrier. However, in mid-2020 United Airlines made the decision to cut ties with ExpressJet.

The carrier was in a difficult spot. ExpressJet had more than 450 planes at one point. Regional airlines rely on the major carriers to survive, and being dumped by your only customer isn't good.

ExpressJet came up with the idea of launching a separate airline. Aha! was a Reno-based airline that flew to destinations across the west.

aha! ceases operations

Aha! ceased operations with ExpressJet liquidating. It was the only business ExpressJet had left. Subodh Karnik is the CEO of Express Jet.

“A combination of conditions led us to this decision. Despite the valiant efforts of our employees to overcome challenges, and despite great support by our cities and airports – especially Reno-Tahoe and the community there, we arrived at a point where termination of operations was in the best interest of our stakeholders,” he added.

The reasons for liquidating were given by ExpressJet.

• Growth, a core element of its business plan, was hampered by lack of availability of aircraft and the inability to swiftly establish passenger servicing infrastructure in smaller airports
• Lower revenues, from factors including the impact of COVID-19 variants and the inability to implement hotel bundle offers — foundational to aha!’s “air hotel adventure” plans
• Fuel prices and other cost inputs exercised an unexpected toll on finances

ExpressJet is unable to help with alternate travel arrangements because customers have been told to contact their credit card companies for refunds.

Bottom line

ExpressJet and aha! are both going to cease operations. At one point, ExpressJet was the largest airline in the world, with over 450 planes. The airline is liquidating.

ExpressJet tried to get creative with the launch of aha!, but it wasn't the saving grace for the airline.

ExpressJet liquidating, what do you think?