Mesa files ch11 bankruptcy

[pdub20s]

PHOENIX, AZ—January 5, 2010—MESA AIR GROUP, INC. (the “Company”), (Nasdaq: MESA), today announced that it has commenced a financial restructuring through the voluntary filing of petitions to reorganize under Chapter 11 of the U.S Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the “Court”). During the restructuring, the Company will continue to operate as normal, without interruption, which includes its code-share agreements with its partners US Airways, United Airlines and Delta Air Lines. Mesa’s go!-Mokulele joint venture, an independent Hawaiian inter-island operation, is not included in the filing, will continue to operate its full flight schedule


Today, we announced that we have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy code. Unfortunately after working much of the last year on restructuring “out of court” we were unable to gain all of the necessary agreements to avoid this more structured “in court” reorganization. During the restructuring, the Company will continue to operate as normal, without interruption, which includes its code-share agreements with its partners U.S. Airways, United Airlines and Delta Air Lines. The Company’s go! Mokulele joint venture is not included in the filing and will continue to operate outside of Chapter 11.

 

[35off]

I am first

Can't believe I get to be first. Wait for it, wait for it......Mesa Sucks!

 

[dispatchguy]

Couldnt have happened to a nicer a$$hole...

 

[bigshooter107]

Mesa sux

 

[Brazilgun]

The stars are aligning...........
Sad for the crews................

 

[wlacy]

Mesa sucks !!!!!1111

 

[Farfugnügen]

It was a long time coming... sorry for the crews though.

 

[maxblast72]

Now through the bankruptcy process, Mesa will reduce their operating costs making them an even cheaper competitor in the future. That is not good for the rest of the regionals in the industry. USAirway's bankruptcy filing post 9/11 and cost restructuring was basically the first domino that fell requiring all major airlines to take concessions over the next 5 years after their filing.

Unless Mesa does a Ch 7 liquidation, this is not good news for anyone in the regional industry. From the article, it doesn't sound like this is going to a Ch 7.

 

[contrail67]

Now through the bankruptcy process, Mesa will reduce their operating costs making them an even cheaper competitor in the future. That is not good for the rest of the regionals in the industry. USAirway's bankruptcy filing post 9/11 and cost restructuring was basically the first domino that fell requiring all major airlines to take concessions over the next 5 years after their filing.

Unless Mesa does a Ch 7 liquidation, this is not good news for anyone in the regional industry. From the article, it doesn't sound like this is going to a Ch 7.

they might want to get a contract with an airline to help them make money....they are done.

 

[BHopper88]

That is if the courts even let them, they I remember right they could be forced into chp 7.

 

[contrail67]

Time to buy XJT stock...Express Jet will fill the void with a better product...

 

[EatinRamen]

Can't their major partners such as Delta, terminate their contracts with Mesa now that Mesa has filed for Bk?

 

[Ezralite]

This won't have any effect on Mesa sucking, right?

 

[Jar Jar]

WAAAAAAAAAAAAAAA HAHAHA


HAHA

Johnny took your PBS

THEN FILED BK!

LOL:!::!:!:!!!!


MESA SUCKKKKKKKKKKKKKKS

 

[Minimaniac]

From the most recent article I read, Mesa has 130 total aircraft. Of that, 52 are currently parked and another 25 are expected to be retired soon. That is 77 of 130 aircraft! Bankruptcy MAY allow Mesa to dump those planes with minimal financial penalty, in which case Mesa may have a chance to restructure. But, Mesa needs to keep enough code share flying to employ the remaining 53 aircraft. I expect one of the major carriers will try to keep some CRJ-900 flying, but I don't think it will be enough. Also, someone needs to finance Mesa's exit, as Mesa's creditors are still owed money after bankruptcy. If Mesa actually wins the $70 million claim against Delta, they may have a good start on that financing. However, it seems a lot of stars need to align to get Mesa out of the courts.
Look how long Frontier stayed in the bankruptcy courts, and they were a name brand airline with a proven profitable business plan. A fleet of cheap Airbuses with trained pilots and a pretty sustainable route system only got attention from Southwest, who merely wanted to shut the doors on Frontier themselves, and RAH, who had no experience or bankroll to make a convincing argument for long term survival of Frontier. Mesa is not likelt to attract attention from anyone in the industry, and at best a few investment firms who will only use a post-BK Mesa to make a quick buck and then let it eat itself alive.
Sorry to all the good people who were just trying to get their careers started and will end up victims of Johnny O's ineptitude.

 

[CRJ puppy]

Now through the bankruptcy process, Mesa will reduce their operating costs making them an even cheaper competitor in the future. That is not good for the rest of the regionals in the industry. USAirway's bankruptcy filing post 9/11 and cost restructuring was basically the first domino that fell requiring all major airlines to take concessions over the next 5 years after their filing.

Unless Mesa does a Ch 7 liquidation, this is not good news for anyone in the regional industry. From the article, it doesn't sound like this is going to a Ch 7.

Agreed completely. Not a good thing for all other regionals...

Be careful what you wish for.

 

[TWA Dude]

Also, someone needs to finance Mesa's exit, as Mesa's creditors are still owed money after bankruptcy.

The news releases stated they're self-funding their bankruptcy (no debtor-in-possession financing). If they have enough cash they can also exit that way. Though they haven't said it perhaps this is a pre-pack bankruptcy.

Let's keep our eyes on the ball here. JO sucks but the real sufferers in Chapter 11 are the employees. I wish them well.

 

[Jar Jar]

Once a business files for Chapter 11 bankruptcy, its creditors are not allowed to attempt to collect previously incurred debts except through the bankruptcy court. Under some circumstances, creditors can force the company into Chapter 7 bankruptcy, if it seems that this will result in more compensation for the creditors.

http://www.economicexpert.com/a/Chapter:11.htm

 

[MCDU]

Mesa does sux, but it was one of the few non PFT airlines back in the days when the majors were hiring. Many pilots that went to Mesa paid their dues. Most airlines were PFT. Comair, ASA, Express Jet, ACA just to name a few.

The real airline that suxs is REPUBLIC. These guys are taking away many jobs and enjoying quick upgrades at the expense of many seasoned pilots.

Republic and Bedford sux 10 times more then MESA.

M

 

[BrickTop]

With Fee for departure contracts finding their demise in the industry the shared risk operation will be soon to replace those beneficial contracts that enabled Mesa and other regionals to be very financially successful. The future will demand more shared risk from regionals and that will require a large working capital. Currently there are only 2-3 regionals positioned with large cash reserves to operate a shared risk operation. For this reason I do not see Mesa as having a large force in the regional market as in years past. I doubt they will liquidate into CH.7 but will likely become a small niche market operator. What is good about the filing is is shows the importance of quality management and that market balance will erode even the cheapest product when the quality suffers so substantially.

 

[rumorhasit]

I personally think the fat lady has requested hot tea with lemon and is warming up the pipes!!!! unfortunately someone will slide into their niche flying as the lowest bidder. I think it is sad that the Hawaii ops that actually is loosing money is not included in this!! Seems like JO the duche is going to ride that sinking ship to the bottom!!!!

 

[WhendoIgetpaid]

I would never wish the crews ill but as far as that company goes....see ya

 

[SPDBRD747400]

Now this is what DL has been waiting for, how long until the press release on DLnet with the contract being cancelled with Mesa? I would expect US and UA to follow quickly.

 

[DashCojones]

Fvck Mesa.

 

[makersmarc]

Mesa sucked

 

[Skippy]

thier stock was near .12 for a year- wtf did you expect?

 

[freightrash]

Mesa sucked

past tense already??

 

[get2flyin]

Mesa does sux, but it was one of the few non PFT airlines back in the days when the majors were hiring. Many pilots that went to Mesa paid their dues. Most airlines were PFT. Comair, ASA, Express Jet, ACA just to name a few.

The real airline that suxs is REPUBLIC. These guys are taking away many jobs and enjoying quick upgrades at the expense of many seasoned pilots.

Republic and Bedford sux 10 times more then MESA.

M

MCDU! Again I agree with you completely. Quick, say something bad about AWA before people start to think we're friends.

 

[NuGuy]

With Fee for departure contracts finding their demise in the industry the shared risk operation will be soon to replace those beneficial contracts that enabled Mesa and other regionals to be very financially successful. The future will demand more shared risk from regionals and that will require a large working capital. Currently there are only 2-3 regionals positioned with large cash reserves to operate a shared risk operation. For this reason I do not see Mesa as having a large force in the regional market as in years past. I doubt they will liquidate into CH.7 but will likely become a small niche market operator. What is good about the filing is is shows the importance of quality management and that market balance will erode even the cheapest product when the quality suffers so substantially.

Brick has an excellent point here. Back when fuel was cheap, and mama was footing the bill whether you flew 1 or 50 (well, 42/no bags with weight restrictions) it was easy to make money. Thow in 0 percent financing from Canada or Brazil for jets, and it's no wonder the weeds got out of control.

Throw in the ancillary costs of piss poor customer service, stranded pax and bag delivery and loss of good will, and you can see why some majors want out, and places like SWA don't want in. Even AirTran wants to keep arms length from their new deal.

The sad fact is that with oil at $70 and without an allowance or free fuel from mama, there is no way to make money with an RJ, and it's damn hard to make it with a 1900 or a Saab.

To make any money, the regional market should be what the commuter market always was: 402s and Twotters, and maybe the occasional BE99. You HAVE to have a niche where people have no other option...like Nantucket, Alaska or some scorpion infested hole in west Texas.

The "new market realities" simply don't support regionals at their current size. There is going to be a major re-wind, and when the new flight/duty regs hit, it's only going to accelerate, because hiring crews costs real money.

The has never been a reliable way to make money in the commuter biz, unless you're on the government teat.

Nu

 

[Metro752]

Mesa Sucks?