Express Jet (XJT) released the 24 cities it will be serving with its new branded service which launches with the first flight in April 2 with flights from Austin and San Antonio, Ontario, Calif., Tucson, Boise, , Kansas City, Mo, Omaha, and Spokane.

The next wave of cities roll out April 9 adding Sacramento to the network while Oklahoma City. Tulsa and Albuquerque come on line on April 16. Next comes Corpus Christi, Fresno and Colorado Springs on the 30^th. In May, Express Jet will open new service at San Diego on May 7, as well as Monterey, Bakersfield and El Paso on the 14^th. It also plans service on as-yet-to-be-announced dates to Raleigh-Durham, Jacksonville, New Orleans, Birmingham, Ala. and Louisville. A breakdown of the connections to and from each point is at Link. For the route map Link.

Wall Street Journal Reporter Scott McCartney called the branded service a "Goldilocks Strategy," as Express Jet looks for markets that are "not too small to leave planes empty, not too big to attract nonstop competition, but just right for a couple of flights a day with its small jets." He also reported that in-flight amenities for the branded service include free snacks, sandwiches and cold pasta dishes, leather seats and satellite radio. Fares will run roughly $150 to $300 one-way, about the same as the price structure today

Speaking before the Raymond James conference last week, CEO Jim Ream said he expects that the branded service will earn the same margin as Express Jet is earning now per tail. (RAN, January 29, Article Link) He also noted that Express Jet had the second best performance in the industry last year. Ream also explained the rift over 25 percent of Express Jet's Continental service came when Continental (CAL) wanted strategic control of XJT aircraft as well as to make the regional a contract services company.

The decision to keep the 69 aircraft was easy given the realities that shrinking an airline means increased unit costs which could threaten the rest of the Continental business if Express Jet were not cost competitive with others in the market. Retaining the aircraft and diversification meant it would keep its costs in line, relying less on being a captive carrier. He reiterated he is still in negotiations with another network carrier to place the final 10 aircraft in contract service.

In the corporate market, to which XJT will devote 15 aircraft, Ream indicated current business jets - from the traditional corporate aircraft to the largest Boeing or Airbus business jets - included no mid-sized aircraft. "A lot of organizations need to move people where scheduled service does not provide the availability they need," adding the market for his 50-seat Embraer (ERJ) jets "is enormous." Companies, he said, are finding it difficult to implement their business plans with commercial service. Ream told investors, its customers could include sports teams, NASCAR teams (which already operate Saab 2000s) to corporate shuttle operations and government contracts. Express Jet expects to fly 900 corporate segments this month.