In a long-awaited announcement, ExpressJet Airlines (XJT) is creating a new subsidiary in the executive jet market which will take 10 of the 69 aircraft it retained from its Continental Express capacity deal. It will announce the plans for the balance of the aircraft when it reports third-quarter earnings on November 8. In previous statements, the airline has talked about its own branded service or partnering with another major. (RAN, August 7, p.8)

ExpressJet Corporate Aviation, which calls for an investment of $5 million to $6 million to refit aircraft with plusher seats and stairs, begins operations in December with the Embraer 145-XR aircraft. The aircraft will be fitted with 50 redesigned seats with XM radio with over 100 channels of audio entertainment through an agreement with LiveTV. In addition to the basic service, it will offer customized flight service options. The company will operate the youngest in its fleet resulting in an average fleet age of less than a year, under the airlines' Part 121 certificate. It hopes to attract corporations, aircraft brokers, hospitality companies, sports teams, and schools to its new business. It expects to have 10 aircraft in service by next May.