ExpressJet asked the Securities and Exchange Commission for an extension on filing its 10Q for the third quarter rescheduling it until last Friday. It cited a change in accounting on its convertible notes. The change impacts its bottom line which was stated at a $4.8 million loss last week but the 10Q will reflect a $5 million net income or 32 cents per share.

Last week it reported an $8.6 million gain, net of taxes, on the modification of the terms of ExpressJet's 11.25 percent 2023 Convertible Notes based upon comparable market transactions and published studies. Related Story  The change will be based on only convertible debt market trading for ExpressJet.
These changes do not impact the operating performance of the company or its cash position as of September 30, 2008 nor will it apply to any previously reported financial information. ExpressJet's 11.25 percent 2023 Convertible Notes par value remains $68.5 million as of September 30, 2008; however, will be shown on the face of the financial statements at a lower amount due to this accounting rule requirement. The fair value amount of the bonds that will be reported within ExpressJet's Form 10-Q dated September 30, 2008 will be $42.2 million, net of amortization.

In separate news, ExpressJet announced today that it received final approval from all of the national offices for its labor unions to execute the new agreements recently ratified by their respective members. Each of these agreements will be retroactive to November 1 and allow ExpressJet to begin realizing $20 million annually in cost savings from its four unions representing the pilots and instructors, mechanics, flight attendants and dispatchers.
With the addition of these savings, ExpressJet expects to meet its stated goal of achieving $35 million annually in wage, salary and benefit reductions from all employees necessitated by the amended capacity purchase agreement with Continental Airlines, Inc. that became effective July 1, 2008.