"Mesa Air Group looks bleak"

dash8driver

Foamy Specialist
Joined
Mar 25, 2002
Posts
1,217
Total Time
~.2842
Five Stocks That Look Completely Worthless
The future for regional carrier Mesa Air Group looks bleak, as the ill effects of both contract restructuring and a potentially devastating lawsuit mount.......
Notwithstanding the Chinese expansion and fleet transition, Mesa has many troubles looming. First, the firm recently escaped an attempt by Delta to terminate its contract (16% of total revenue) because of poor performance. Second, US Airways has been reducing Mesa's capacity with no guarantee for a contract renewal. Even if US Airways renews the contract early next decade, we suspect it will come at substantially lower contractual reimbursement rates. Finally, the firm is in the midst of a second lawsuit for unscrupulous activity relating to its Hawaiian go! operations. If the firm has to post bond at the conclusion of the Aloha case for an amount similar to the $90 million it had to post as a result of its dispute with Hawaiian Holdings HA, it may have serious trouble continuing as a going concern........
We're reducing our fair value estimate for Mesa to $0 from $0.40 per share, as we believe the firm's current financial position is insufficient to meet its upcoming financial obligations. During the first nine months of 2008, the firm burned through $89 million in free cash flow after adjusting for the effects of selling marketable securities. We project the firm will burn through $12 million in free cash during the fourth quarter, leaving the firm with a little more than $35 million in unrestricted cash. Based on the firm's debt schedule, we estimate it has approximately $97 million debt payments due during the next year.....
 

CX880

Well-known member
Joined
Apr 19, 2006
Posts
2,861
Total Time
1898
If you need to pay 90 million dollars but you only have 20 million you have decisions to make. You could either cut your losses deploy the golden parachute and ride off into the sunset. Or rob a bank. What would JO Do??
 

RiddleEagle18

Well-known member
Joined
Jan 3, 2006
Posts
640
Total Time
.
Funny they are going to hold a Meeting on Dec 22. to issue more stock??? The stock will be delisted on dec 16th. I cant imagine the stock holders approving this. The price of a share is already $.28. Issuing additional share will drive the price down further.
 

Poahi

Well-known member
Joined
Nov 19, 2005
Posts
3,766
Total Time
5,000
. Issuing additional share will drive the price down further.
Let me put it this way. If Mesa were to issue stock that sold at what the market values the existing, undiluted shares today, it would have to issue 378,000,000 shares to pay off the debt.

Mesa has just under 27,000,000 shares outstanding today.
 

Broke in CVG

Broke AGAIN in CVG!
Joined
Dec 11, 2001
Posts
385
Total Time
Life
Due on 1/29/09 - $23.1 mil

Due on 2/10/09 - $71.4 mil.

GOOD LUCK JO!
 

WMUSIGPI

The $100,000,000 Question
Joined
Jan 23, 2003
Posts
2,219
Total Time
5000+
If you need to pay 90 million dollars but you only have 20 million you have decisions to make. You could either cut your losses deploy the golden parachute and ride off into the sunset. Or rob a bank. What would JO Do??

So just how much is a used RJ worth these days? I'm guessing less than what would be needed to pay off the debt and still have anything left to fly.
 

Broke in CVG

Broke AGAIN in CVG!
Joined
Dec 11, 2001
Posts
385
Total Time
Life
Thats cause you are a ****************************** bag.
No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.
 

SPDBRD747400

World's Favourite Airline
Joined
Oct 10, 2005
Posts
931
Total Time
mucho
No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.
I agree with you 100%
 

doh

Jump seat shrink
Joined
Aug 26, 2003
Posts
4,017
Total Time
48 yrs
No... if it was a CHQ, Air W, XJ, SKYW, ASA or just about ANY other pilot I would. However, the Mesa pilots knew exactly what they were doing and who they were chosing to work for when they took that job.

So, I stand by the fact that not only would I celebrate Mesa going under but also the bottom feading pilots that chose to go there.
Dude, when I went to Comair, I had no idea who they were. They offered me a flying gig, so I took it. You had no clue about this industry before you got your first job either. Bad karma to you for wishing ill to any pilot. Düschbag indeed!
 

79%N1

Well-known member
Joined
Nov 19, 2002
Posts
2,441
Total Time
2 many
I won't feel bad for the ones that would flip off Piedmont Pilots on the ramp in CLT, or go around writing 'props are for boats' in PHL and CLT.......because they were sooooo cool to be in their RJ.
 
Top