MESA Loses 24 Million!!!!!

[Flyer1015]

Your retarded!!

It's reasons like these that I love flightinfo forums! Where else would I get my daily dose of irony and humor?

 

[Superpilot92]

Actually, the agreement is an 'At Risk' agreement with Delta. Not good! Look a little harder before you type.

Oh, and pass the koolaid. We ain't doin' so good here at Express.

That's how it used to be in the past why is it so bad now? If its not looking so good why would you pass up a job at CAL? Must not look that bad. Your optimism is inspirational!! Obviously you are a business genius and you should be our CEO, WE NEED YOUR HELP!!!

 

[Superpilot92]

It's reasons like these that I love flightinfo forums! Where else would I get my daily dose of irony and humor?

You're Right!!!

 

[samballs]

I guess spelling and grammar may get you "noticed", or perhaps "paid" (or is it payed?) more. Remember, in this industry we're not happy until "you're" (or is it your?) not happy!
And what's with all these new guys being lost without an electronic calculator these days to complete an easy W&B load manifest?

Does nobody teach simple Math and English anymore?

you must be a fag

 

[Tarzan]

Your retarded!! NONE of us know what our bid was for DAL. That isnt public knowledge And you sir pretending you know just makes you look ignorant. Lets see some facts on that mister CEO. :crying:

Wow! What a well thought out and reasonable response.

I was glad to see the XJT get the flying out of LAXinstead of Mesa. We looked at as it raising the DCI average pay rates. However, I've been told on the side that XJT bid the flying at cost by an individual who would probably know. It let the wind out of my sails to hear that. I hoped it wasn't true but it stands to reason it was.

Get over yourself and understand that when you start tossing barbs to insult others, it doesn't exactly call out intelligence on your part either.

 

[Pocono Pilot]

That's how it used to be in the past why is it so bad now? If its not looking so good why would you pass up a job at CAL? Must not look that bad. Your optimism is inspirational!! Obviously you are a business genius and you should be our CEO, WE NEED YOUR HELP!!!

Maybe I should have taken the CAL job, especially seeing how fast ExpressJet is falling.

But ExpressJet has pretty far to fall before I would lower myself to working for CAL. From what I hear it is the pits there. Worse contract than ours.

Having said all that, I am not blind to how bad things are about to get at ExpressJet if something isn't done - and done fast!

Stop drinking the koolaid. This has Independence Air written all over it.

 

[Superpilot92]

Wow! What a well thought out and reasonable response.

I was glad to see the XJT get the flying out of LAXinstead of Mesa. We looked at as it raising the DCI average pay rates. However, I've been told on the side that XJT bid the flying at cost by an individual who would probably know. It let the wind out of my sails to hear that. I hoped it wasn't true but it stands to reason it was.

Get over yourself and understand that when you start tossing barbs to insult others, it doesn't exactly call out intelligence on your part either.

Bottom Line is Neither you nor I know what My company bid for the DAL flying. So by you coming on here and saying that we are doing it at cost shows what about your Intelligence?? Wind, Sails??? You heard from someone in the "KNOW" then it must be true. Seriously we could have kept those planes and flown them for ourselves why would we give up some of our better planes to DAL just to fly for nothing. By all means if you have some factual Information Please share! In the mean time I am really glad we could come in and raise the DCI avg. :beer:

 

[Superpilot92]

Maybe I should have taken the CAL job, especially seeing how fast ExpressJet is falling.

But ExpressJet has pretty far to fall before I would lower myself to working for CAL. From what I hear it is the pits there. Worse contract than ours.

Having said all that, I am not blind to how bad things are about to get at ExpressJet if something isn't done - and done fast!

Stop drinking the koolaid. This has Independence Air written all over it.

You sound like you are just trying to scare people senior to you into leaving!!Good Play my friend!! Koolaid is such a retarded term and so is comparing XJT to FLYI. Look i am far from a XJT lifer, sure while i am here in am going to enjoy it and Do enjoy it but I am here to get my time built up so i can move on just like you should have done with CAL.

 

[Jack Mehoff]

does anyone know how much of this loss stems from GO!? Seems like the ship is really sinking over there

 

[Poahi]

does anyone know how much of this loss stems from GO!? Seems like the ship is really sinking over there

About $600,000. The biggest part of the loss is from an $30 Million "Incentive Payment" made to UAL. JO was evasive as to what that was for, but it looks to me it was for either keeping or extending the UAX agreement.

The rest of it had mostly to do with higher than forecast maintenance expenses.

United and ATC were blamed for the losses.

BTW, Mesa isn't going to have a contract for at least another 2 years.

 

[topdawg]

$600,000 my ass.... "go!'s operating results were $700,000 below plan" (mesa press release). Below plan being the key words there. Maybe they came out here willing to lose $10 million to get Aloha out because it seemed easy and would turn into a good investment. That would make it $10.7 million so far. The true number Im sure will never be exposed. JO's already blaming it on ******************** like bad weather and Im sure the numbers will be absorbed into his other excuses.

Oh and fcuk GO!

 

[Poahi]

$600,000 my ass.... "go!'s operating results were $700,000 below plan" (mesa press release). Below plan being the key words there. Maybe they came out here willing to lose $10 million to get Aloha out because it seemed easy and would turn into a good investment. That would make it $10.7 million so far. The true number Im sure will never be exposed. JO's already blaming it on ******************** like bad weather and Im sure the numbers will be absorbed into his other excuses.

Oh and fcuk GO!

Easy there general - you're going to burst a blood vessel. $700,000 is right. I don't know what the plan was, but unfortunately, none of the carriers is reporting inter-island financial info. This fall, that will change.

The thread was about the $24 Million loss and go! is really a small part of it. Aloha isn't going anywhere.

 

[CFIse]

To try and give a balanced perspective it should be noted that Mesa had a pro forma profit. It didn't meet analysts expectations by quite a margin, but it was still a profit.

What dropped it to the loss was 2 major issues:

- Mesa "paid to play" for the United contract. That payment was being amortized over the life of the contract, Mesa has decided that the contract is no longer profitable and wrote the entire amount off in one quarter.

- Mesa made signficant capital improvements to get the Delta Dash fleet flying, they were amortizing that investment, but that contract isn't going to be profitable and it's being cut short - so they wrote that amount off in one quarter.

This was a "take out the trash" quarter - once they realised that they were going to miss analysts expectations (mostly, as I understand it, because they missed collecting on some (all?) United incentive payments, they got a power by the hour increase from GE they didn't expect, or at least didn't plan for, and they were getting raped on APU overhauls) they decided to throw everything out in one quarter.

By getting rid of the amortizing payments they make future quarters look a lot better. Also note that they got United to take some fuel costs directly, as opposed to passing them through the books as revenue. Since it was always a pass through there was no profit associated with it, so now any profit will be a larger percentage of a reduced revenue number - which the market will approve of going forward.

So Mesa will whine to United to get some kind of relief on the contract, they've already negotiated a deal with Delta MX to handle the engine work so they'll lose the GE power by the hour issue in a few quarters and who knows what will happen with the APUs, but expect a hot summer at Mesa.

It is STUNNINGLY difficult to lose money on fee for departure - although I have no doubt Mesa could handle it if they wanted. The "at risk" flying is the EAS and go!, and as a percentage of the companies revenue those are small potatoes (really, go! would be hard pushed to have a material effect on mesa financials, despite conspiracy theorists ideas).

If it was a play to get the pilots to knuckle under it was REALLY BADLY planned since:

- section 6 dosn't open until late summer, and the company has steadfastly refused to negotiate any earlier, and why would they?

- even with section 6 open push won't come to shove on the negotiations for at least 12 months - we need to bat a few totally unacceptable offers from both sides across the table a few times before anybody gets serious.

- Mesa didn't blame the pilots - which you'd figure they would if they were going to try some leverage.

I'd be willing to bet Mesa won't be able to stop itself being profitable going forward, albeit perhaps at reduced numbers, but after dumping the trash like that expectations are going to be lowered anyway. If Mesa wants to use lack of profit as leverage to screw the pilots - and they might, this wasn't the quarter they played that card, it's yet to come.

 

[hyperboy]

CFISE You are dumb

I see you on this board as well as the mesa forum...You always have an excuse and it is never that bad to you. What a jerk! I am a mesa pilot as well and you have not a clue. It is bad over here. How many days you getting off? Do you not have a life? You obviuosly don't have loved ones or if you do they don'y love you cause they have no idea who you are. You always make excuses...They took a loss and don't be an idiot about it. You need to get off "JO's kool aid hose"...have a lil more respect for yourself!

Don't make us sound like you are the majority, you are on your own pal!

 

[mdanno808]

What dropped it to the loss was 2 major issues:

- Mesa "paid to play" for the United contract. That payment was being amortized over the life of the contract, Mesa has decided that the contract is no longer profitable and wrote the entire amount off in one quarter.

- Mesa made signficant capital improvements to get the Delta Dash fleet flying, they were amortizing that investment, but that contract isn't going to be profitable and it's being cut short - so they wrote that amount off in one quarter.

This was a "take out the trash" quarter - once they realised that they were going to miss analysts expectations (mostly, as I understand it, because they missed collecting on some (all?) United incentive payments, they got a power by the hour increase from GE they didn't expect, or at least didn't plan for, and they were getting raped on APU overhauls) they decided to throw everything out in one quarter.

It is STUNNINGLY difficult to lose money on fee for departure - although I have no doubt Mesa could handle it if they wanted. The "at risk" flying is the EAS and go!, and as a percentage of the companies revenue those are small potatoes (really, go! would be hard pushed to have a material effect on mesa financials, despite conspiracy theorists ideas).

.

OK.
First you state that the United contract and Delta dash contract were unprofitable (possibly because managements bids were unrealistic?), yet you later write that "It is STUNNINGLY difficult to lose money on fee for departure". It looks to me like Mesa managed to do it.

You also claim that Mesa is being raped on APU overhauls. What are they paying vs. the average rate that a non-Mesa airline pays? If it is significantly higher, then why are they paying it? How many APU's have they had to overhaul?

As for the Go! interisland venture.... I won't go there, other than to say that losses are losses, and no BOD or shareholder likes to see them. Go! to me simply shows how out of touch and ungrounded your management team really is. Now get back under OJ's desk.