"Mesa Air Group looks bleak"

[dash8driver]

Five Stocks That Look Completely Worthless
The future for regional carrier Mesa Air Group looks bleak, as the ill effects of both contract restructuring and a potentially devastating lawsuit mount.......
Notwithstanding the Chinese expansion and fleet transition, Mesa has many troubles looming. First, the firm recently escaped an attempt by Delta to terminate its contract (16% of total revenue) because of poor performance. Second, US Airways has been reducing Mesa's capacity with no guarantee for a contract renewal. Even if US Airways renews the contract early next decade, we suspect it will come at substantially lower contractual reimbursement rates. Finally, the firm is in the midst of a second lawsuit for unscrupulous activity relating to its Hawaiian go! operations. If the firm has to post bond at the conclusion of the Aloha case for an amount similar to the $90 million it had to post as a result of its dispute with Hawaiian Holdings HA, it may have serious trouble continuing as a going concern........
We're reducing our fair value estimate for Mesa to $0 from $0.40 per share, as we believe the firm's current financial position is insufficient to meet its upcoming financial obligations. During the first nine months of 2008, the firm burned through $89 million in free cash flow after adjusting for the effects of selling marketable securities. We project the firm will burn through $12 million in free cash during the fourth quarter, leaving the firm with a little more than $35 million in unrestricted cash. Based on the firm's debt schedule, we estimate it has approximately $97 million debt payments due during the next year.....

 

[dash8driver]

before all you mesa koolaid drinkers flame me, this is from morningstar.

 

[bigshooter107]

mesa sucks!

 

[Lampshade]

We're reducing our fair value estimate for Mesa to $0

That's how wall street says "Mesa Sucks"

 

[CX880]

If you need to pay 90 million dollars but you only have 20 million you have decisions to make. You could either cut your losses deploy the golden parachute and ride off into the sunset. Or rob a bank. What would JO Do??

 

[Poahi]

What would JO Do??

Simple. Sell more stock.

http://google.brand.edgar-online.co...mpanyid=6367&ppu=%2fdefault.aspx%3fsym%3dMESA

 

[Erlanger]

So how would the Mesa flying be divid up?

 

[RiddleEagle18]

Funny they are going to hold a Meeting on Dec 22. to issue more stock??? The stock will be delisted on dec 16th. I cant imagine the stock holders approving this. The price of a share is already $.28. Issuing additional share will drive the price down further.

 

[Poahi]

. Issuing additional share will drive the price down further.

Let me put it this way. If Mesa were to issue stock that sold at what the market values the existing, undiluted shares today, it would have to issue 378,000,000 shares to pay off the debt.

Mesa has just under 27,000,000 shares outstanding today.

 

[Broke in CVG]

Due on 1/29/09 - $23.1 mil

Due on 2/10/09 - $71.4 mil.

GOOD LUCK JO!

 

[kf4amu]

I feel bad for the pilots.

 

[quinnlake]

So how would the Mesa flying be divid up?

It won't be divided up. The assets would be sold.

 

[Broke in CVG]

I feel bad for the pilots.

I don't.

 

[WMUSIGPI]

If you need to pay 90 million dollars but you only have 20 million you have decisions to make. You could either cut your losses deploy the golden parachute and ride off into the sunset. Or rob a bank. What would JO Do??

So just how much is a used RJ worth these days? I'm guessing less than what would be needed to pay off the debt and still have anything left to fly.

 

[siucavflight]

I don't.

Thats cause you are a ****************************** bag.

 

[Broke in CVG]

Thats cause you are a ****************************** bag.

No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.

 

[masedogg19]

Thats cause you are a ****************************** bag.

That needs to be quoted again....apparently he didn't get it the first time

 

[SPDBRD747400]

No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.

I agree with you 100%

 

[doh]

No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.

Dude, when I went to Comair, I had no idea who they were. They offered me a flying gig, so I took it. You had no clue about this industry before you got your first job either. Bad karma to you for wishing ill to any pilot. Düschbag indeed!

 

[79%N1]

I won't feel bad for the ones that would flip off Piedmont Pilots on the ramp in CLT, or go around writing 'props are for boats' in PHL and CLT.......because they were sooooo cool to be in their RJ.

 

[McNugent]

Dude, when I went to Comair, I had no idea who they were. They offered me a flying gig, so I took it. You had no clue about this industry before you got your first job either. Bad karma to you for wishing ill to any pilot. Düschbag indeed!

Ignorance is a pathetic excuse. I hope people would do their homework before choosing where they work.

Some Mesa tool wants to cry about how much life sucks.. they get zero sympathy from me. Life is full of choices, some people just make crappy ones.

 

[siucavflight]

No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.

You are a regional pilot, did you forget that? You are a bottom feeder, way to celebrate wanting to see your fellow pilots on the street.

 

[CX880]

No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.

Wait until this TA passes then you can call them whatever you want. Their current worst contract in the industry was forced on them, this one isn't. If they actually pass this one then it's validation for what people like broke in CVG have been saying about Mesa.

 

[WSurf]

I won't feel bad for the ones that would flip off Piedmont Pilots on the ramp in CLT, or go around writing 'props are for boats' in PHL and CLT.......because they were sooooo cool to be in their RJ.

I have never had a Mesa Pilot Flip me off in my 8 years at Piedmont.

 

[topdawg]

I truely hope every mesa pilot ends up on the street. Ive been a good boy and its the only present I've asked santa for.

 

[siucavflight]

I cant understand this mentality, but whatever, some of you are doomed to be regional pilots for the rest of your lives I guess.

 

[onionluvr]

Funny they are going to hold a Meeting on Dec 22. to issue more stock??? The stock will be delisted on dec 16th. I cant imagine the stock holders approving this. The price of a share is already $.28. Issuing additional share will drive the price down further.

I'm thinking a reverse stock split is in their future. The shareholders really don't have much of a choice than to authorize the increase.

 

[ex j-41]

I truely hope every mesa pilot ends up on the street. Ive been a good boy and its the only present I've asked santa for.

I don't care for Mesa or it's management but i do care for the friends and families of the mesa crews. As you should too. Your comment should get you kicked out of here. There is no value to your comment. I am sure you are one of those 500 hr wonders that got hired when the going was good. Some Mesa pilots had to sit 2 years in a 1900 to then upgrade to F/O on a Dash to finally make it to an RJ and still get paid crap because of a contract that was forced on them. Have some respect.

 

[Ratherbsurfing]

I don't.

Why not? I feel bad for all the employees at Mesa who may be without jobs soon.

 

[Full of LUV]

This is classic

I don't care for Mesa or it's management but i do care for the friends and families of the mesa crews. As you should too. Your comment should get you kicked out of here. There is no value to your comment. I am sure you are one of those 500 hr wonders that got hired when the going was good. Some Mesa pilots had to sit 2 years in a 1900 to then upgrade to F/O on a Dash to finally make it to an RJ and still get paid crap because of a contract that was forced on them. Have some respect.

Back in '01 when I was reading my furlough announcement right here on FI, some Mesa pilot told me how much of a FOOL I was by going to a major that Mesa would ALWAYS flourish because they were willing to work for what the market would pay. He claimed that the major pilots were primadonas who diserved layoffs and extinction and that eventually Mesa would fly bigger and bigger equip........ I am very glad he couldn't have been more wrong!