Continental to Sell Part of ExpressJet to Public
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Continental Airlines Inc. plans to sell part of its ExpressJet Holdings Inc. commuter carrier unit to the public, a move that analysts said would help Continental take advantage of a fast-growing business.
The fifth-largest U.S. airline hasn’t decided the size of the stake to be sold, an issue the company’s board will discuss this week, Air Line Pilots Assn. spokesman Jim Moody said. The unit operates the airline’s Continental Express carrier, which feeds passengers to the main airline’s flights.
Commuter carriers throughout the industry have seen their value rise as they’ve made increasing use of regional jets, which can carry more people and fly farther than the turboprop planes they are replacing. Still, labor costs at commuter airlines also may rise as unions attempt to negotiate higher wages.
Houston-based Continental’s Class B shares rose $1.52 to to close at $48.76 on the NYSE.
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