Mesa/United

[dal757]

When does Mesa's contract expire with United?

 

[viper548]

I don't think mesa will be around long enough to see the end of that contract.

 

[joeyfly55]

It would be fine with me reserve for over a year SUCKS!

 

[Cpt Oveur]

this is a popular rumor, but can someone post something with substance that shows that Mesa won't be flying United colors for much longer.

 

[MJ42]

this is a popular rumor, but can someone post something with substance that shows that Mesa won't be flying United colors for much longer.

Probably not. Everyone who thinks they have info actually knows very little. That being said...I've run across many nice Mesa pilots, too bad the company sucks.

 

[viper548]

this is a popular rumor, but can someone post something with substance that shows that Mesa won't be flying United colors for much longer.

They can't staff their flying so UAL is giving some of it away. Expressjet will be covering some of mesa's flying out of IAD and Skywest will be flying 1 more plane this month as well.

 

[MJ42]

They can't staff their flying so UAL is giving some of it away. Expressjet will be covering some of mesa's flying out of IAD and Skywest will be flying 1 more plane this month as well.

Now for the hijack...viper, you coming over to us?

 

[viper548]

This is from the Mesa 10K


The code-share agreement for (i) the 10 Dash-8 aircraft terminates in July 2013 unless terminated by United by giving notice six months prior to April 30, 2010, (ii) 10 50-seat CRJ-200’s terminates no later than April 30, 2010, which

can be accelerated up to two years at our discretion and can be swapped to CRJ-700’s for a term of up to 10 years but not beyond October 2018, (iii) 20 50-seat regional jets terminates in July 2013, but can be terminated early in April 2010, (iv) the 5 CRJ-700’s delivered in fiscal 2007 (the 12 to be delivered upon the withdrawal of the 50-seat regional jets) terminates ten years from delivery date, but no later than October 31, 2018, and (v) the remaining 15 CRJ-700’s terminates in three traunches between December 31, 2011 and December 31, 2013.
​

The code-share agreement is subject to termination prior to these dates under various circumstances including: [/font]​

• If certain operational performance factors fall below a specified percentage for a specified time, subject to notice and cure rights; • Failure by us to perform the material covenants, agreements, terms or conditions of the code-share agreement or similar agreements with United, subject to thirty (30) days notice and cure rights; • If either United or we become insolvent, file bankruptcy or fail to pay debts when due, the non-defaulting party may terminate the agreement; • In the event that we merge with, or if control of us is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier.

 

[viper548]

Now for the hijack...viper, you coming over to us?

If all goes well, I'll be there in may

 

[MJ42]

If all goes well, I'll be there in may

You OO now?

 

[viper548]

[FONT=Arial,Helvetica]

[FONT='Times New Roman',Times]If the holders of our 6.25% Senior Convertible Notes Due 2023 exercise their right to require the Company to redeem their notes, our liquidity could be adversely affected or we may issue additional stock, which would dilute existing stockholders.[/FONT] [/FONT]​

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[FONT='Times New Roman',Times]

In June 2003, we completed the private placement of senior convertible notes due 2023 (the “Notes”), which resulted in gross proceeds of $100.1 million ($96.9 million net). The Notes were sold at an issue price of $397.27 per note and are convertible into shares of our common stock at a conversion rate of 39.727 shares per note, which equals a conversion price of $10 per share. Holders of the Notes may convert their Notes only if: (i) the sale price of our common stock exceeds 110% of the accreted conversion price for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding quarter; (ii) prior to June 16, 2018, the trading price for the notes falls below certain thresholds; (iii) the Notes have been called for redemption; or (iv) specified corporate transactions occur. The holders of the Notes may require the Company to repurchase the Notes on June 16, 2008 at a price of $397.27 per $1,000 note plus accrued and unpaid cash interest. If the holders of these Notes exercise their right to [/FONT]​

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[FONT='Times New Roman',Times]

15 [/FONT]​

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Table of Contents


[FONT='Times New Roman',Times]

require the Company to repurchase their Notes on June 16, 2008, the Company will be required, at its election, to repurchase such Notes with cash, common stock, or a combination thereof. [/FONT]​

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[FONT='Times New Roman',Times]

As a result of prior conversions of the Notes by noteholders, at September 30, 2007, there were approximately $37.8 million in Notes outstanding. If the holders of these Notes exercise their right to require the Company to repurchase all of the Notes on June 16, 2008, the Company will be required to repurchase such Notes for approximately $37.8 million in cash, common stock, or a combination thereof. If Mesa elects to issue shares of its common stock in lieu of cash, such shares must be issued pursuant to an effective registration statement filed with the Securities and Exchange Commission. No assurance can be given that the Company will be able to timely register shares of common stock. The failure to do so would be a breach of the terms of the indenture covering the Notes. In addition, if Mesa elects to issues additional stock to meet this purchase obligation, this issuance would dilute existing stockholders. [/FONT]​

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[viper548]

You OO now?

Yep!!

 

[MJ42]

Yep!!

Good, we need more of us here!

 

[viper548]

[FONT='Times New Roman',Times]

On January 9, 2007, Aloha Airlines filed suit against Mesa Air Group in the United States District Court for the District of Hawaii. The complaint seeks damages and injunctive relief. Aloha alleges that Mesa’s inter-island air fares are below cost and that Mesa is, therefore, violating specific provisions of the Sherman Act. Aloha also alleges breach of contract and fraud by Mesa in connection with two confidentiality agreements, one in 2005 and the other in 2006. [/FONT]​

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[FONT='Times New Roman',Times]

Mesa denies any attempt at monopolization of the inter-island market and further denies any improper use of the data furnished by Aloha while Mesa was considering a bid for Aloha during its bankruptcy. The case is in its incipient stages and a tentative trial date of October 28, 2008 has been scheduled by the court. [/FONT]​

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[viper548]

I hope everything works out for the mesa employees