Gulfstream to cut capacity, add EAS flights

Washington DC
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Gulfstream International Airlines plans to reduce capacity within its Florida-based route system as it transitions to a single fleet type in the midst of rising fuel prices.

At the same time the carrier is adding flights from Cleveland to several markets under the US DOT’s Essential Air Service (EAS) program on behalf of Continental Airlines.

Capacity reductions will follow the carrier’s sale of eight Embraer E-120s. The airline expects to have all E-120s out of service by 1 August.

Gulfstream expects to complete the sale of seven E-120s by 15 August, per a purchase agreement brokered on 26 June.

The carrier is negotiating the sale of the eighth E-120.

Aircraft sales are expected to eliminate the airline’s long-term debt of $7.3 million and improve Gulfstream’s cash position by about $4 million.

“In addition, we believe that concentrating on a single fleet type, the Beechcraft 1900D regional airliner, will improve our overall operating efficiency and lower costs,” Gulfstream president and CEO David Hackett, says in a statement.

In conjunction with reduced capacity, Gulfstream will offer new EAS service under the Continental Connection banner from Cleveland effective 3 September to the following markets: DuBois, Pennsylvania; Franklin/Oil City, Pennsylvania; and Greenbrier/Lewisburg/White Sulphur Springs, West Virginia.

Effective 1 October, the airline also will launch additional EAS service for Continental from Cleveland to Bradford, Pennsylvania and Jamestown, New York.

Gulfstream was not immediately available to comment about its planned capacity reductions in Florida.