Deals
United Grabs Regional-Airline Stake in Boost for Hubs
- Deal with SkyWest furthers carrier’s aggressive expansion
- Pilots union sees positive step toward controlling flights
A United Continental Holdings Inc. airplane prepares for landing.
Photographer: Tim Fadek/BloombergThis article is for subscribers only.
United Continental Holdings Inc. agreed to acquire a stake in ExpressJet Airlines, one of its regional affiliates, in a $70 million deal that will give the No. 3 U.S. carrier more control over short-distance flying and a fleet of about 150 small jets.
By gaining sway over more United Express service, the purchase furthers United’s plan to bolster service to smaller cities and expand domestic growth of flights and seats by 4 percent to 6 percent a year for the next two years. ExpressJet currently flies for United mostly from Houston and Newark, New Jersey. United also holds a stake in CommutAir, an Ohio-based regional carrier.