File:     XJT-18

2005-174

ExpressJet Flight Attendant Update

TO:      All ExpressJet Flight Attendants

Continental Airlines announced today that it has given notice it will withdraw 69 of 274 regional jet aircraft from its capacity purchase agreement with ExpressJet Holdings, Inc. and ExpressJet Airlines, Inc. 

Continental stated that they will request proposals from numerous regional jet operators to provide regional jet service to replace the withdrawn capacity.  The transition of service from ExpressJet to a new operator is expected to begin in January 2007 and be completed during the summer of 2007.  Continental has stated that they believe the rates charged by ExpressJet to Continental for regional capacity are above the current market.  Continental and ExpressJet attempted to negotiate a more competitive long-term contract, but the parties were unable to reach an agreement.

We are still waiting to secure future dates to continue negotiating with the Company regarding the flight attendants at ExpressJet with the assistance of Mediator Linda Puchala.  The impact that this announcement  has made on our negotiations is still unclear at this time but we will keep you advised as future developments occur.

Sincerely and fraternally,

William O'Driscoll

PRESIDENT-DIRECTING

GENERAL CHAIRPERSON

Julie Frietchen                    Brent Thompson                       Art Teolis
                                         GENERAL CHAIRPERSONS

                                            Dana Fremont (IAH)             Cheryl Greulich (CLE)                  Charlie Douglas (EWR)

                                          Negotiating Committee