Just wondering what all the Mesa people here think about this article:
http://pacific.bizjournals.com/pacific/stories/2006/04/03/story7.html
Among the tidbits, JO says (and remember, this is a quote directly from him);
"Yeah, they responded to our $39 fares, but how many seats can they sell for $39?" he asked. "I don't think they can do it for long. We can fly planes empty and cover it. The Hawaii operation costs about $20 million to $25 million a year -- we can lose that much money. We can cover it."
The article continues to say;
Ornstein comes to Hawaii with deep pockets -- an operational cash flow of $120 million -- and the indulgence of stockholders who like the fact that he runs a profitable airline in this era of bankruptcies.
Yes, the Board of Directors support him (publicly, for now);
"We [the board] trust him, and he's proven to be worthy of our trust," said Maurice Parker, a director on Mesa's board since 1998. "We think this is a great move for Mesa, and it's going to be profitable."
But I wonder how much the board and employees will support him when he is running through
nearly 20% of the entire airline's cash flow to support the bleeding in Hawaii! Don't you think that at some point the board is going to say "Whoa there big fella" and tell JO to end the Hawaii stunt? They all support him when Mesa is making a profit, but watch how fast they can turn on him when the red ink starts running.
And another thought - He may bleed through that much cash in a hurry, but how does he intend to turn it around? Does he think that the demise of Aloha or Hawaiian's interisland service would automatically move all their passengers to Mesa? Wouldn't the surviving bigger airline just get bigger and snag most of the lost airline's passengers? If those people had rejected Mesa to begin with, why would they suddenly go there in droves?
On a different note, I have jumseated twice in the last month with a guy who is a Mesa pilot and going to Hawaii. He told me that the plan is for six crews in HNL, and two each in LIH, ITO, and KOA. How in the world are those outstationed crews supposed to survive? If you think it's expensive to live in HNL, try one of the other islands!
And finally,
Airgod said:
Acting like the island life is so much different than anywhere else...it's not, believe me. Same s_ _ _ - different place. Trying to incite the locals to reject Mesa is a waste of effort.
Airgod, your world is about to get rocked! Unless you have lived and/or worked in Hawaii (as mdanno said) you simply don't know what you're talking about.... hmmmm... pretty much like JO doesn't know what he's getting into either!
Good luck Mesa guys. You're gonna need it!
HAL