Mesa, Aloha and -$?

ePilot22

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Reading over the 8-K from Mesa, it seems like the Aloha name might not be in their favor.
8-K said:
Form 8-K for MESA AIR GROUP INC

2-Dec-2008
Entry into a Material Definitive Agreement, Other Events, Financial Statements

Item 1.01 Entry into a Material Definitive Agreement.
On November 28, 2008, Mesa Air Group, Inc. ("Mesa") entered into a settlement and release agreement ("Settlement Agreement"), effective as of November 28, 2008, with certain affiliates of The Yucaipa Companies LLC (collectively, "Yucaipa") relating to the action entitled Aloha Airlines, Inc., et al. v. Mesa Air Group, Inc. before the United States District Court for the District of Hawaii (Case No. CV 07-00007 DAE/BMK) (the "Action"). The Settlement Agreement fully and finally settles all issues and disputes that were raised, or could have been raised, by Yucaipa, Mesa, or Aloha Airlines, Inc. and Aloha Air Group Inc. (collectively, "Aloha") in connection with the Action.
Pursuant to the Settlement Agreement, Yucaipa will fully and finally release Mesa and its affiliates, and Mesa will fully and finally release Yucaipa and its affiliates, from all past, present or future claims related to the Action, including all claims unknown at the time of execution of the Settlement Agreement, and/or arising out of certain non-disclosure agreements and Mesa's introduction of flight service into the Hawaiian inter-island market. Yucaipa's release, which will be effective February 27, 2009, includes the release of any claims relating to the Action that were or could have been brought by Aloha because Yucaipa previously acquired all of Aloha's interests and rights in the Action.
In consideration for Yucaipa's release, Mesa has agreed to issue approximately 2.7 million shares of its common stock to Yucaipa and make a cash payment of $2 million to Yucaipa. Mesa has also agreed to register the shares of common stock it issues to Yucaipa with the Securities and Exchange Commission.
In addition, under the Settlement Agreement, Mesa and Yucaipa agreed to establish a licensing and profit sharing arrangement whereby, in the event that Yucaipa is able to acquire from Aloha in an upcoming bankruptcy court auction the rights to the names "Aloha" and "Aloha Airlines," Yucaipa will enter into a license agreement with Mesa to license such names to Mesa for ten years (the "Term") in exchange for royalty payments by Mesa and Mesa will pay to Yucaipa a set percentage of the pre-tax operating profits from Mesa's operations in the Hawaiian inter-island market. Specifically, for each year during the Term, Mesa will pay Yucaipa 1% of the passenger ticket revenue generated from all Hawaiian inter-island flight operations, subject to a minimum annual revenue payment of $600,000 (the "Revenue Payments"), and will also pay Yucaipa 30% of the pre-tax operating profits from Mesa's operations in the Hawaiian inter-island market less the Revenue Payments.
If Mesa ceases inter-island flight operations in Hawaii, Mesa has the right to terminate the licensing and profit sharing arrangement. Mesa will provide Yucaipa with a $5 million promissory note payable over five years, at LIBOR +350 basis points interest, reset quarterly, that will become payable if Mesa ceases operations in the Hawaiian inter-island market or breaches the Settlement Agreement. If, at the end of the first five years of the Term, the note has not become payable as a result of Mesa's cessation of operations or breach, the principal owing on the note will decrease automatically on a straight-line basis over the remaining five years of the Term. If Mesa ceases operations in Hawaii or breaches the Settlement Agreement during the final five years of the Term, the amount payable on the note would be the principal remaining at the time of such cessation or breach. The note will be secured by a first priority lien on certain Mesa assets with a fair market value equal to 125% of the principal amount of the note.
The Settlement Agreement also provides that the parties will take certain further actions to seek the dismissal, with prejudice, of the entire Action.




Item 8.01 Other Events.
On November 28, 2008, Mesa issued a press release regarding the Settlement Agreement described in Item 1.01 above. A copy of the press release is attached hereto as Exhibit 99.1.




Item 9.01. Financial Statements and Exhibits
(d) Exhibits. Exhibit Description
99.1 Press release regarding Settlement Agreement, dated November 28, 2008
It reads like Mesa has to operate in Hawaii under the Aloha name for ten years or pay a huge fee.

Am I reading this wrong or could there be a silver lining in this deal (the end of Mesa)?






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CX880

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It's a public company, Mesa has to do whatever it can to make things look like they're on the up and up. Like start flying in Hawaii and China with profitable 50 seaters.. It's delaying the inevitable.
 

Andy Neill

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Reading over the 8-K from Mesa, it seems like the Aloha name might not be in their favor.

It reads like Mesa has to operate in Hawaii under the Aloha name for ten years or pay a huge fee.

Am I reading this wrong or could there be a silver lining in this deal (the end of Mesa)?eP.
As long as you read the contingent event that would make that so:

....in the event that Yucaipa is able to acquire from Aloha in an upcoming bankruptcy court auction the rights to the names "Aloha" and "Aloha Airlines," Yucaipa will enter into a license agreement with Mesa ....
 

dooork

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Reading over the 8-K from Mesa, it seems like the Aloha name might not be in their favor.

It reads like Mesa has to operate in Hawaii under the Aloha name for ten years or pay a huge fee.

Am I reading this wrong or could there be a silver lining in this deal (the end of Mesa)?

Why would that be a silver lining?
You should be supporting Mesa getting a better contract and not the end of our jobs!
 

ePilot22

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Why would that be a silver lining? You should be supporting Mesa getting a better contract and not the end of our jobs!

I'd rather support the Aloha pilots that are out of a job because Mesa undercut them. Thanks though.







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dooork

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I'd rather support the Aloha pilots that are out of a job because Mesa undercut them. Thanks though.

What have you done to support them? Come on here and talk it up? I'll support them. If Mesa uses the Aloha name I would support an ALPA resolution to hire them to fly the HI flying.
 

CX880

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If Mesa uses the Aloha name I would support an ALPA resolution to hire them to fly the HI flying.
How would they do that? Is Mesa seniority based or can a street guy be hired to fly in HI? Anyways for all this to happen Mesa has to still be in business.....
 

MJ42

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How would they do that? Is Mesa seniority based or can a street guy be hired to fly in HI? Anyways for all this to happen Mesa has to still be in business.....
Better question is: Why the hell would Aloha pilots fly the same routes making a FRACTION of what they did? And...How would that be supporting them? Yeah, hire the Aloha guys back at bottom feeder rates, that'll help them:rolleyes:
 
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ePilot22

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dooork said:
What have you done to support them? Come on here and talk it up? I'll support them. If Mesa uses the Aloha name I would support an ALPA resolution to hire them to fly the HI flying.
I hope that if Mesa uses the Aloha name and they have to pay an additional yearly fee to do the same flying they stole that it'll put a bigger financial a hurt on JO and company.

Your idea of support is an insult.

I'll support pref-hiring of Mesa pilots when Mesa is finally gone.





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