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Is Mesa going to tank?

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...continued...

Mesa sued Delta, alleging that it canceled flights at Delta's request, primarily because Delta wanted to use the slots at New York's Kennedy International Airport for other flights. A federal judge in Atlanta blocked the termination in May: a hearing is set for Jan. 30. Delta subsequently terminated another contract, under which Mesa flew CRJ-900 regional jets.

Jesup and Lamont analyst Helane Becker says Mesa can conceivably turn things around, but first must solve its many problems. "The airline industry in general is going to be profitable this year, but whether Mesa can be profitable is still up in the air," she says.

"They have a lot of issues they are dealing with," she says. "They are looking at having bonds put to them, they have to settle with Delta before they can grow in any large measure, and the balance sheet needs to be restructured. It's still a cloudy and highly risky picture." Meanwhile, in a recent report CreditSights said Mesa inflated its share count to settle convertible bond issues, and now, "with share count growing from 30 million to 900 million, it will need a 1 for 100 reverse split after everything settles." But after going "through semi-hell and almost back," Mesa is "almost bottoming," the firm says.

--end--

Trojan
 
Most
Extreme
Sucking
Airline



W=Winner winner chicken dinner
 
Work in Mekrab somehow!
PBR
 
Make
Employees
Suffer
Abuse

No disrespect meant for the crews and Mechanics. I just think JO is a A-hole!
 

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