ExpressJet Airlines has filed for Chapter 11 bankruptcy and ceased all flight operations. Among other things they blame high fuel costs and the inability to sell hotel travel packages. However if your business model isn’t resilient to sub-$100 fuel you were doomed to fail.
Last year ExpressJet, 49% owned by United, shut down its Embraer ERJ-145 operation, kept one plane and their operating certificate, and since the fall flew as aha! to 11 cities from a hub in Reno. As I wrote at the time, “using high seat cost regional jets on leisure routes. What could possibly go wrong?”