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