A new board member has been named to the ExpressJet Holdings board of directors as the result of a potential proxy fight with an investor group questioning the company’s corporate strategy. When asked if this signaled shareholder disapproval of ExpressJet’s three-pronged aviation strategy that includes own-risk, point-to-point service as well as charter operations, Spokesperson Kristy Nicholas would only say that there is a concern across the industry to safeguard shareholder values as fuel prices rise. In addition to fuel increases, major carriers are dramatically cutting their capacity with several regionals at the minimum operations for their contracts.
In order to achieve a new board member, ExpressJet Holdings is increasing the size of its board from eight to nine directors and is appointing Andrew N. Jent as part of an agreement between the company and Hayman Investments, L.L.C., Hayman ADVISORS, L.P., Hayman Capital Master Fund, L.P., and J. Kyle Bass. The agreement was made to resolve a potential proxy contest pertaining to the election of directors to ExpressJet's board of directors at the 2008 annual meeting of stockholders. The two parties wanted a resolution before the May meeting. ExpressJet, said Nicholas had nominated its own additions to the board against Hayman’s nominees. For a complete report see the next issue of Regional Aviation News.