United Air exits stake in parent of former ExpressJet Airlines

United Airlines Holdings Inc. has quietly divested its stake in the parent company of former regional carrier ExpressJet Airlines Inc., according to people familiar with the matter.

United had maintained a 49.9% position in ManaAir LLC after shuttering ExpressJet’s regional feed operations almost two years ago after the onset of the Covid-19 pandemic. ExpressJet, which still has an operating certificate and is led by Chief Executive Officer Subodh Karnik, last year started Aha! Airlines, a low-cost carrier that flies from Reno, Nevada.

ManaAir was dissolved in late May under an agreement between the parties, according to two people who were not authorized to discuss the matter. United hasn’t disclosed financial terms of the transaction, which hasn’t been previously reported.

Aha, which continues to operate after United’s exit, flies four 50-seat Embraer SA aircraft to nine leisure markets in the western US. The carrier’s moniker is derived from the company’s intention to sell “air, hotel, adventure” trips, bundling lodging and eventually other items such as rental cars, ski trips and excursions.

United and Karnik formed ManaAir in 2018 to acquire ExpressJet from SkyWest Inc. for $70 million and the assumption of debt. The original plan for the joint venture was to put some of United’s larger 76-seat Embraer regional jets at the carrier. United ended ExpressJet’s flying in September 2020 amid a broad restructuring of its regional operations.

At one time, Atlanta-based ExpressJet—formerly Continental Express—was among the world’s top 10 airlines by fleet size, with more than 400 aircraft. It also operated as an independent and charter carrier at various points in its history.