ExpressJet Holdings, Inc. Q2 2009 Earnings Call Transcript

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2009-07-22 07:21:15.0

Tags: Network, Call Transcript, Earnings, Level, Expressjet Holdings Inc., Networking, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Christian Sadlier from Lambert Edwards.

Christian Sadlier - Lambert Edwards & Associates

Can you describe your strategy for the next six to nine months if the economy does remain at these lower demand levels?

Jim Ream

Well I think on the charter and the ground handling business we have still got numerous projects in front of us that allow us to believe that we can still grow those lines of business and generate more cash should the business – by continuing to push forward with those objectives. A little bit tougher sledding, obviously, with the economy being in the shape it’s in, but we have had pretty good success in the first half of this year. You know, we have got the same level of volume of projects to work on in the second half. So, I don’t think there is any reason to believe that we’re not going to continue to make progress there.

On the network line, that is going to be kind of a read and react to what is going on. I think everybody is kind of waiting to see what the October, November demand levels look like and the mix of those passengers. From there, there is going to be reactions to how the markets are covered and we are going to have to sort of wait and see what that demand is.

I think, sort of listening to the calls of all of the carriers, and obviously we are pretty close to Continental and understand the difficulty they are having in forecasting exactly what the next six months is going to be. But, clearly as you start to see that, they are going to react. That network is going to shift. We think we have an airplane that is very useful and we do a good job for them, and we are going to help them in whatever way we can to assist them in being successful.

In that regard, it is going to be a little bit more of a reaction off of what we see in October and November. I would say right now people are unsure exactly what that is going to look like.

Christian Sadlier - Lambert Edwards & Associates

As a follow up, what indicators should we be looking at that will kind of tell us if demand is picking up and that you are seeing the benefit of the increase?

 

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