Delta, Mesa, and the great RFP

[standaman]

Well I guess part of RFP announced.

Stan

Press ReleaseSource: Mesa Air Group Inc.

Mesa Announces Amendment to Existing Code Share Agreement and Expanded Code Share Agreement With Delta Air Lines
Tuesday March 13, 6:42 pm ET
PHOENIX, March 13 /PRNewswire-FirstCall/ -- Mesa Air Group Inc. (Nasdaq: MESA - News) announced today that it has reached an agreement with Delta Air Lines ("Delta") for an amendment to and assumption of its existing Delta Connection Agreement ("Amended DCA"), as well as for a new code share agreement to operate 14 CRJ-900 regional jet aircraft ("Expansion DCA"), both subject to approval by the Bankruptcy Court overseeing Delta's Chapter 11 bankruptcy proceedings. After service begins pursuant to the Expansion DCA and the Amended DCA, the Mesa regional jet fleet flying for Delta will consist of 14 CRJ-900s and 36 ERJ-145s.

http://biz.yahoo.com/prnews/070313/latu118.html?.v=67

 

[Weasil]

this should come as no surprise to anybody. Although I thought Mesa was having trouble staffing the planes they have now.

 

[CheeseDick]

Can't get rid of something when the bankruptcy judge tells you to pick the cheapest one.

 

[Weasil]

If you read the press release it actually sounds like DL owes Mesa a bunch of money and this is part of the bankruptcy settlement, instead of cash they gave them some flying. It doesn't say that, just reading between the lines. It also says they are taking away 8 ERJ 145s from Mesa

 

[Soverytired]

Ugh. I think I'm going to vomit.

As to the staffing probs . .. it's not like Mesa's getting THAT much flying.

FOR EXAMPLE:

"Adding 6 ERJ-145's" . . . . well yes, but this is a 1-for-1 switch for our purportedly unreliable Dash-8's. Those pilots can switch to the ERJ (street D8 captains will become first officers though. . . . so sorry, but welcome to Mesa)

"Adding 14 CRJ-900's" . . well, yes, but they're dropping 8 ERJ 145's starting next year.

So . . net gain of 6 airplanes. Hardly a huge vote of confidence.

Mesa WILL be in a position to whipsaw though: TO Mesa pilots: you must stay cheap, or Delta will dump us! To COMAIR: you must stay cheap, or we'll go with Mesa. And so forth.

 

[WalterSobchak]

As long as there are airlines in bankruptcy, Mesa will continue to exist. They're like cockroaches...or Keith Richards.

 

[Soverytired]

I would also point out that Mesa will now be somewhat exposed to fuel costs. Years ago this was a "deal breaker" for our CEO, who insisted that code share partners eat that cost.

Sniff, sniff. I smell desperation for good news at Mesa.

 

[FmrFreightDog]

Wow! And here I thought ASA would get that flying. After all, we have the best management team in the business!

 

[subin30]

And CHQ/S5 is loosing 15 E135's. In addition to 3% of the remaining 40 jet (E145/E170). So, Chq looses out on the RFP.

And the big winner is? SkyWest! my bet. Hope the Comair boys can keep their flying and gets some growth even.

 

[rtmcfi]

How much of the RFP is still out there?