The Latest Upstart Airline, ExpressJet ...

... has airport directors at many mid-sized markets paying attention. A few weeks back, I heard ExpressJet CEO Jim Ream address airports at AAAE’s annual F. Russell Hoyt National Airports Conference in Tucson. Last week, I got to fly ExpressJet direct from Austin to Kansas City, site of ACI-NA’s annual convention. When you live in a market like Austin, you come to rely on regional jets, which is all ExpressJet flies (all Embraers). The flights were on time – outbound was full; inbound was perhaps 30 percent, indicating there may still be some marketing to be done. Ream is entertaining, and says he usually shuns such keynote opportunities because he likes to tell it like it is. Since Tucson is one of his key markets to date, it’s likely his appearance was more a nod of appreciation to Tucson Airport Authority president/CEO Bonnie Allin, A.A.E. and her team. But this was his audience. While the NAC attracts airports of all sizes, it always seems to carry an atmosphere of mainstream – getting to the core issues facing the average airport director. Because of this, it is easily one of the best annual meetings in the industry. At the heart of NAC is the industry itself. Ream says he remains a supporter of the hub-and-spoke system. His company, which grew out of Continental Express, still flies routes for Continental and Delta. Yet, it’s the point-to-point service opportunities between medium markets that is a key focus, he says. “We don’t have too many seats in any particular city,†he says, though Kansas City is a “focus cityâ€, which suggests a long-term model that could emulate a component of Frontier. He says the crews, in particular, like the point-to-point routing versus dealing with hubs. “Suddenly, they’re happy,†he says, because the aircraft are continually moving. Ream tells airports that ExpressJet offers an opportunity for fuller gate utilization, even if it is only one gate. On the subject of airport managers specifically, he comments: “I’ve got plenty of things I [lose] sleep over; how the airport is run isn’t one of them.†Besides direct service, low fares, and free XM Radio on flights, Ream likes to focus on things the customers appreciate. He negotiated with a Napa Valley vintner for a custom wine that he can offer at $3 a glass. But his crowning achievement may be with the mainstream drinker – “I’m the inventor of a buck a beer,†he boasts. Thanks for reading. jfi