And So it Begins...Mesa Dash Flying Terminated

[Trip7]

http://finance.yahoo.com/news/Mesa-A....html?x=0&.v=1

Mesa Announces Termination of Turboprop Aircraft Service

• Press Release
• Source: Mesa Air Group, Inc.
• On 4:00 pm EDT, Thursday October 29, 2009

• Companies:
  • Mesa Air Group Inc.

PHOENIX, Oct. 29 /PRNewswire-FirstCall/ -- MESA AIR GROUP, INC. (Nasdaq: MESA - News) today announced that United Airlines has exercised its early termination rights for Mesa's operation of 10 Dash-8 turboprop aircraft under Mesa's code-share agreement with United Airlines. Mesa plans to work with United Airlines on an orderly transition plan, but, in any event, the date of exit from service is expected to be no later than April 30, 2010.
Related Quotes


SymbolPriceChangeMESA0.2250+0.0075


{"s" : "mesa","k" : "c10,l10,p20,t10","o" : "","j" : ""}
(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)
See the Company's disclosure in its Form 10-Q for the quarterly period ended June 30, 2009 for a complete discussion of the Company's agreement with United.
"We face a challenging period during the next few quarters and will strive to mitigate the impact of the termination of aircraft under our code-share agreement with United Airlines. The lease terms covering four of these aircraft expire on April 30, 2010, the remaining six aircraft have lease terms beyond April 30, 2010. We are exploring a number of opportunities for the remaining six aircraft including other codeshare opportunities, our independent operations or subleasing the aircraft to other operators," said Mesa Chairman and CEO, Jonathan Ornstein.
For more information regarding these matters, please see the Company's quarterly report filed with the SEC on August 10, 2009.
This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or expected.
Mesa currently operates 136 aircraft with approximately 800 daily system departures to 126 cities, 40 states, the District of Columbia, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go!. In June 2006 Mesa launched inter-island Hawaiian service as go!. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,700 employees.
Mesa Website: www.mesa-air.com

Look for Skywest INC, likely Skywest Airlines, to pick up this flying (My opinion only)

[surreal1221]

And with two days to go, no renewal of the CRJ lift...

[kellwolf]

My opinion? That flying is just gonna cease period. Rather than replace it, United will likely either combine it with existing routes or just let it go altogether. It's POSSIBLE Skywest might get some more flying, but it's also just as likely that Colgan, GoJet or even Great Lakes would get it. It's purely wild speculation at this point.

[surreal1221]

Who has the money.

[CRJDriver]

Who will get the flying? Whoever is the cheapest operator...

I hate to see more pilot's lose their job though. Will this cause more furloughs at Mesa?

[CamYZ125]

Originally Posted by CRJDriver

Who will get the flying? Whoever is the cheapest operator...

I hate to see more pilot's lose their job though. Will this cause more furloughs at Mesa?

Probably. But who knows. We'll be at around 330+ by Apr. And I thought Mesa was the cheapest?! haha

[SurferLucas]

Talked to an ACP at Horizon today...he said they've been told that QX is still in the running with United for some Q400's out of DEN. They want 8-10 airframes, which we'd be able pull off for them.

If they get 10 airframes from QX, that means I'd have my job back! Sadly, I'm not holding my breath...

[v1valarob]

Originally Posted by SurferLucas

Talked to an ACP at Horizon today...he said they've been told that QX is still in the running with United for some Q400's out of DEN. They want 8-10 airframes, which we'd be able pull off for them.

If they get 10 airframes from QX, that means I'd have my job back! Sadly, I'm not holding my breath...

I would much rather you guys get them out of DEN than us at CJC.

[CRJDriver]

Rumors are SkyWest will do the flying, open up a Brasilia base again. It really isn't all that much flying...

[kellwolf]

Originally Posted by CRJDriver

Who will get the flying? Whoever is the cheapest operator...

I hate to see more pilot's lose their job though. Will this cause more furloughs at Mesa?

I would thought the cheapest would get it, too. Then ASA got more flying thanks to an $80 million dollar loan with interest. Seeing as this is the same airline that worked that deal, it wouldn't surprise me to see some sort of "Who's gonna pay us the most for this" wrangling.

Pretty much leaves Pinnacle out of the running since our management blew all our cash on auction rate securities and stock buyback.

[SpiraMirabilis]

Not that I'd accept recall but it looks like I may never have to choose, anyway.

[meyers9163]

Good find Marus... Interesting indeed.... You find any word on the CRJ200 flying with this article as well or no?

[S.T.Aviator]

http://www.reuters.com/article/press...09+PRN20091029

[joliet]

I can't count on my fingers how many Mesa threads have started with...

"And so it begins..."

[Socal321]

Mesa UAX CRJ200 flying is dead April 1st unless they tell them otherwise so there should be no more on that from UA. UA was only obligated to tell them about the Dash 8 flying 6 months ahead and now they have. RIP mesa.

[Socal321]

Originally Posted by CRJDriver

Rumors are SkyWest will do the flying, open up a Brasilia base again. It really isn't all that much flying...

Most likely. The fact that Skywest just gave out the loan to UA will only help their cause. But yea it's not that much flying, MESA must have really messed up there to be replaced by Skywest Brasilias. I would imagine the only thing cheaper than a Mesa Dash8 is a GIA 1900.

[Socal321]

Originally Posted by meyers9163

Good find Marus... Interesting indeed.... You find any word on the CRJ200 flying with this article as well or no?

He's not interested this news is about dirty props, no job for ASA there.

[DPApilot]

Originally Posted by S.T.Aviator

http://www.reuters.com/article/press...09+PRN20091029

On just the Dash 8's.

[meyers9163]

Originally Posted by Socal321

Mesa UAX CRJ200 flying is dead April 1st unless they tell them otherwise so there should be no more on that from UA. UA was only obligated to tell them about the Dash 8 flying 6 months ahead and now they have. RIP mesa.

So the CRJ200 flying is DONE and does not need any word from UAL? I have not really been following much. But did JO not say if they lost the UAL flying they would be out of luck?

[mxflyer]

I'm more surprised this thread started with a source.

[mrivc211]

Gee, I wonder who is going to be awarded Q-400 flying in DEN shortly?

[surreal1221]

Originally Posted by DPApilot

On just the Dash 8's.

No renewal, with two days to go before the end of October, for the RJ flying - yet.

[S.T.Aviator]

Mesa stock dropped to .13 cents after hours. I'm just glad I sold at .34 about a month ago.

[surreal1221]

Originally Posted by meyers9163

So the CRJ200 flying is DONE and does not need any word from UAL? I have not really been following much. But did JO not say if they lost the UAL flying they would be out of luck?

Originally Posted by Mesa 10-Q

"We currently operate 26 CRJ-200s, 20 CRJ-700s and 10 Dash-8 aircraft for United Airlines, Inc ("United") pursuant to a code-share agreement. Under the terms of such agreement, 26 CRJ-200s terminate in April 2010 (United has certain renewal rights to extend for five years by giving 180 days notice) and 10 Dash-8s terminate in July 2013 but can be terminated early by United in April 2010 upon six months prior notice. The 26 CRJ-200 and 10 Dash-8 aircraft represent approximately 18% of the Company's revenues. Although we have early return rights for 8 CRJ-200 aircraft currently flying for United, there are significant lease return costs associated with these aircraft. In addition, we have substantial aircraft lease obligations beyond April 2010 on the remaining United CRJ-200 fleet. If the CRJ-200 flying and Dash-8 flying is not extended, no assurance can be given that we will be able to place these aircraft in revenue-generating service in a timely manner, or at all, or sublease these aircraft at or near the lease reimbursement rates in the United code-share agreement. If this occurs, the inability to timely redeploy such aircraft and/or sublease such aircraft at favorable lease reimbursement rates would have a material adverse impact on our financial condition and results of operations. In the absence of obtaining additional capital to fund our operations through equity or debt financings, asset sales, consensual restructuring of the aircraft leases, extend United CRJ-200 and Dash-8 flying, or placing the aircraft with another carrier pursuant to a revenue guarantee contract, our cash flows from operations and available working capital will be insufficient to meet our future capital requirements. No assurance can be given that any future equity, debt or other financings will be successful or otherwise available on acceptable terms, or at all, or that we will be successful in reaching a consensual restructuring of our aircraft leases. "

Posted this to you elsewhere on the interweb.

Unless notified with 180 days notice, the CRJ-200 lift is done between Mesa and United. With an April 2010 termination date - pick any day in April - minus 180 days, and the life line is quickly evaporating (re: October is almost done).

Good luck to all the good Mesa people.

[meyers9163]

Originally Posted by surreal1221

Posted this to you elsewhere on the interweb.

Unless notified with 180 days notice, the CRJ-200 lift is done between Mesa and United. With an April 2010 termination date - pick any day in April - minus 180 days, and the life line is quickly evaporating (re: October is almost done).

Good luck to all the good Mesa people.

Ok, but with that they operate 58 CRJ's for UAL and 10 DASH correct? So they would still have 22 planes flying for UAL???