Mesa buys PSA

[Taco Rocket]

1. Mesa declares bankruptcy (done).
2. Gets rid of all ERJs, -200s, Dash-8s.
3. Left with 53 aircraft: all -700s and -900s (~13 with UA, balance with US), all in place with financing and utilization.
4. Furloughs down to ~500 pilots, kills Freedom, cuts off F8 management.
5. Lowers costs another ~20% with re-negotiated leases, less overhead, etc.
6. Collects about half or more of the $70M it is suing DL for (Freedom) in BK court (Delta settles to end pain in ass relationship).
7. Exits bankruptcy with over $100M in cash (new stock issuance + current cash + good cash flow).
8. Makes Parker a deal for contract extension of current -900 flying at lower cost (Mesa most competitive regional now after BK), which...
9. involves a takeover of PSA, thus injecting ca$h into US, takes pain in ass airline and Express division out of US' hands (again lowering US' costs while accepting a "partner's" "investment").
10. Mesa "Regional Airline of the Year" 2011.

 

[CX880]

Mesa has been the most competitive regional before BK. Look at where that got them. Your predictions are only good up till 4.

 

[Taco Rocket]

The market for 50 (and under) seats is done. The regional airlines in trouble are all stuck with these aircraft in a declining market.

That is what happened to Mesa. Mesa is in bankruptcy because it expanded rapidly with now (economically) obsolete aircraft and could not dump them when the market began to turn, and fuel prices began to rise. Cost competitiveness is not in this analysis because it plays little to no role when attempting to dump leases. Bankruptcy does.

50 seat competitors are now paying their "partners" for the right to fly for them, or are underbidding each other for money-losing flying. Or now assuming marketing and/or fuel cost risks that a regional didn't have to 10 years ago. These companies are just doing what Mesa did five years ago: getting a contract, any contract, to tread water and keep making payments. But these companies can tread water only for so long: they will get shafted by their cash-starved "partners" in future mergers or downsizings.

It's a buyers' market and the majors hold all the cards (unless you have the balls to grow into a major on your own -- another strategy). When the music stops on this side of the industry if you do not have 70 or 90 seat+ aircraft your company is done. Mesa knows this and is using bankruptcy to position itself ahead of the curve.

 

[ePilot22]

1. Mesa declares bankruptcy (done).
2. Gets rid of all ERJs, -200s, Dash-8s.
3. Left with 53 aircraft: all -700s and -900s (~13 with UA, balance with US), all in place with financing and utilization.
4. Furloughs down to ~500 pilots, kills Freedom, cuts off F8 management.
5. Lowers costs another ~20% with re-negotiated leases, less overhead, etc.
6. Collects about half or more of the $70M it is suing DL for (Freedom) in BK court (Delta settles to end pain in ass relationship).
7. Exits bankruptcy with over $100M in cash (new stock issuance + current cash + good cash flow).
8. Makes Parker a deal for contract extension of current -900 flying at lower cost (Mesa most competitive regional now after BK), which...
9. involves a takeover of PSA, thus injecting ca$h into US, takes pain in ass airline and Express division out of US' hands (again lowering US' costs while accepting a "partner's" "investment").
10. Mesa "Regional Airline of the Year" 2011.

#7 makes me laugh. 100 Million Dollars. Don't stop with PSA, Mesa should buy and rule the world!






eP.

 

[ePilot22]

The market for 50 (and under) seats is done.

You really are stupid.





eP.

 

[ePilot22]

That is what happened to Mesa. Mesa is in bankruptcy because it expanded rapidly with now (economically) obsolete aircraft and could not dump them when the market began to turn, and fuel prices began to rise. Cost competitiveness is not in this analysis because it plays little to no role when attempting to dump leases. Bankruptcy does.

So why is it ONLY Mesa in BK? According to you, everyone from Great Lakes to SkyWest should be bankrupt.





eP.

 

[ePilot22]

50 seat competitors are now paying their "partners" for the right to fly for them, or are underbidding each other for money-losing flying. Or now assuming marketing and/or fuel cost risks that a regional didn't have to 10 years ago. These companies are just doing what Mesa did five years ago: getting a contract, any contract, to tread water and keep making payments. But these companies can tread water only for so long: they will get shafted by their cash-starved "partners" in future mergers or downsizings.

It's a buyers' market and the majors hold all the cards (unless you have the balls to grow into a major on your own -- another strategy). When the music stops on this side of the industry if you do not have 70 or 90 seat+ aircraft your company is done. Mesa knows this and is using bankruptcy to position itself ahead of the curve.

Actually CASH is king. Mesa is missing that piece of the puzzle. They are dumping their lease and SCREWING their creditors. That'll make it harder for them to get financing to acquire larger aircraft later on.

But good luck and keep drinking the kool-aid.





eP.

 

[Metro752]

Don't upset this A-lister. P-dubs where are you, your Freedumb buddies are here!

 

[sniper]

Actually CASH is king. Mesa is missing that piece of the puzzle. They are dumping their lease and SCREWING their creditors. That'll make it harder for them to get financing to acquire larger aircraft later on.

But good luck and keep drinking the kool-aid.



Very possible with new management in place running Mesa

BTW

How many aircraft NWA, UAL, DAL, USAIR Dumbed during BK and how many new they bought

 

[sniper]

So why is it ONLY Mesa in BK? According to you, everyone from Great Lakes to SkyWest should be bankrupt.





Skywest has better management
Eagle, AMR has the cash
Coex mama CAL has the leases
PSA mama USAIR has the leases
Comair mama DAL did that already
Republic mama Wexford has a lot of money and it shows.

 

[BrownStreak]

today in the monthly crew news session at the training center in CLT Doug told us all that Mesa was gonna stick around as far as Airways is concerned. I call BS seeing as how nearly everything he says ends up turning out to be the complete opposite of what actually happens.

 

[BoeingBaller]

Mesa SUCKS!!!!

 

[smartelephant]

Maybe you guys can answer a question for me. For those of you who've flown the 50 seat airplanes, i.e. the 145 and/or the cr200, and who now fly/or have flown the 70-90 seaters, i.e. the cr7 & 9, or the jungle buses, what is the fuel burn difference? Are the extra 20-40 seats justified on a per seat/mile basis? Becasue it seems to me the larger ones cost about the same to operate as the smaller ones, only you get the extra seats to sell. But, I don't know that's why I'm asking you guys.

 

[WSurf]

Maybe you guys can answer a question for me. For those of you who've flown the 50 seat airplanes, i.e. the 145 and/or the cr200, and who now fly/or have flown the 70-90 seaters, i.e. the cr7 & 9, or the jungle buses, what is the fuel burn difference? Are the extra 20-40 seats justified on a per seat/mile basis? Becasue it seems to me the larger ones cost about the same to operate as the smaller ones, only you get the extra seats to sell. But, I don't know that's why I'm asking you guys.

Omg! Okay, nevermind! Grrrrrrr.......

Movie qoute time
Mr. smartelephant/dummy, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.

 

[Metro752]

Happy Madison Daddy!

 

[Flyin2low]

Maybe you guys can answer a question for me. For those of you who've flown the 50 seat airplanes, i.e. the 145 and/or the cr200, and who now fly/or have flown the 70-90 seaters, i.e. the cr7 & 9, or the jungle buses, what is the fuel burn difference? Are the extra 20-40 seats justified on a per seat/mile basis? Becasue it seems to me the larger ones cost about the same to operate as the smaller ones, only you get the extra seats to sell. But, I don't know that's why I'm asking you guys.

It's true. The 700 and 900 are incrementally more expensive to acquire and operate, but bring in MEGA revenue. That's why the 50 seat operators want to get out of them and get into bigger RJ's.

 

[samuraiguytn]

The fuel burn is around the same between the 700 and the 200. So yes, you answered your own question. They are more fuel efficient for the payload they carry, thus more highly sought after.

 

[ePilot22]

How many aircraft NWA, UAL, DAL, USAIR Dumbed during BK and how many new they bought

The only thing DUMBED is me for having to read what you retards write. How hard is it to read what you post BEFORE you post it?

I doubt that NWA, UAL, DAL or USAIR ever DUMBED anything during bankruptcy. It's not like the B is right next to the P.



..........annnnnnnnnnnnd BREAK..........

Mr. smartelephant/dummy, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.

Well said.






eP.

 

[ePilot22]

So why is it ONLY Mesa in BK? According to you, everyone from Great Lakes to SkyWest should be bankrupt.

Skywest has better management
Eagle, AMR has the cash
Coex mama CAL has the leases
PSA mama USAIR has the leases
Comair mama DAL did that already
Republic mama Wexford has a lot of money and it shows.

Except this is what your boyfriend claimed the reason why Mesa declared bankruptcy:

The market for 50 (and under) seats is done. The regional airlines in trouble are all stuck with these aircraft in a declining market.

That is what happened to Mesa. Mesa is in bankruptcy because it expanded rapidly with now (economically) obsolete aircraft and could not dump them when the market began to turn, and fuel prices began to rise. Cost competitiveness is not in this analysis because it plays little to no role when attempting to dump leases. Bankruptcy does.

Mesa is a fee-for-departure airline, why is it they operate at a loss year after year? I'll give you a hint: It's not the obsolete aircraft or high fuel prices.





eP.

 

[paddlehigh]

Watched the USAIR town hall meeting yesterday and President Scott Kirby stated this is a good time to get rid of Mesa's 200's and renegotiate the 900 contract. This would probably also open up phoenix to other express carriers.