Regionals Update: Continental Postpones ExpressJet IPO
The sagging market valuations of airlines across the U.S. since September 11 have prompted Continental Airlines to reconsider plans to spin off its wholly owned regional subsidiary into an independent entity. As a result, the airline has postponed its planned initial public stock offering of ExpressJet from parent company Continental Airlines until market conditions warrant renewed consideration of such a move. “We will continue to monitor and evaluate the markets and we’ll determine at what point we may choose to go forward with the offering,” said a Continental Airlines spokesman. “There is no specific date planned.” In July Continental announced it would sell 20 percent of its wholly owned regional subsidiary, laying the foundation for a full spin-off by March 1 next year. The $319 million IPO would have retired $150 million of ExpressJet’s outstanding debt to Continental Airlines.