Rogue5
Adult Swim junkie
- Joined
- Jul 16, 2002
- Posts
- 882
A few choice passages from TheStreet.com:
Getting Rich Off the Poor Man's Southwest Air
By Eric Gillin
Staff Reporter
05/08/2003 03:05 PM EDT
URL: http://www.thestreet.com/markets/ericgillin/10086146.html
Looking to invest in an airline that has solid earnings growth, double-digit percentage traffic growth, good control over costs and isn't named JetBlue or Southwest?
Consider Mesa Air Group, a small regional carrier operating out of Phoenix, serving 150 markets as a code-share partner for big guys like America West and US Airways.
(…)
Investors seeking to avoid the labor showdowns recently seen at AMR can sleep easy buying Mesa. Last quarter, the company signed a 4 1/2-year contract with pilots and extended its deal with flight attendants, making labor negotiations a relative nonissue for the next few years.
(…)
In addition to greater clarity on its situation with US Air, Mesa also has a bid in with UAL, parent of bankrupt United Airlines, to expand its role as a code-share partner with that carrier. While company CEO Jonathan Ornstein was bound by a confidentiality agreement and couldn't disclose details in a recent conference call, he did add that he felt Mesa's bid had a good shot.
"I think our offer is extremely competitive," said Ornstein. "And based on United's own documents that they filed in the bankruptcy, it would be significantly below their current cost. That's not to say that our competitors will not sharpen their pencils."
Getting Rich Off the Poor Man's Southwest Air
By Eric Gillin
Staff Reporter
05/08/2003 03:05 PM EDT
URL: http://www.thestreet.com/markets/ericgillin/10086146.html
Looking to invest in an airline that has solid earnings growth, double-digit percentage traffic growth, good control over costs and isn't named JetBlue or Southwest?
Consider Mesa Air Group, a small regional carrier operating out of Phoenix, serving 150 markets as a code-share partner for big guys like America West and US Airways.
(…)
Investors seeking to avoid the labor showdowns recently seen at AMR can sleep easy buying Mesa. Last quarter, the company signed a 4 1/2-year contract with pilots and extended its deal with flight attendants, making labor negotiations a relative nonissue for the next few years.
(…)
In addition to greater clarity on its situation with US Air, Mesa also has a bid in with UAL, parent of bankrupt United Airlines, to expand its role as a code-share partner with that carrier. While company CEO Jonathan Ornstein was bound by a confidentiality agreement and couldn't disclose details in a recent conference call, he did add that he felt Mesa's bid had a good shot.
"I think our offer is extremely competitive," said Ornstein. "And based on United's own documents that they filed in the bankruptcy, it would be significantly below their current cost. That's not to say that our competitors will not sharpen their pencils."
