MESA and ACA may merge!

[Carl_Everett]

If you've been watching the markets lately no one is "long-term" anymore... It is all about short term gains and moving on. a 25%+ return (35% on average since July) from losses is very attractive to shareholders no matter who they are. Unfortunately shareholders don't care about the employee groups, they only care about their return on investment.

Disclaimer: I don't own any ACA or Mesa stock, nor do I necessarily agree with this merger, just merely making an observation.

But a large majority of ACAI stock is held by investment houses. I think it is somewhere like 87%. Large investment houses are in it for long term gains. Now the question becomes: Does the investment world like LCC's or code-shares?

 

[Splert]

No... I haven't been watching the markets lately. I did not realize that all investors in this universe were anti long-term. Shoot, I missed the memo.

I am thinking most BODs are long-term.

Whatever...

This unsolicited offer is a gut check for ACA's BODs.

Splert

 

[surplus1]

The investment world likes money, and that includes the "institutions". If they can improve the value of their holdings by 25 - 35%, what do you think they will do? Falcon isn't off base. This isn't about "running an airline", it's about making a dollar.

Given the public nature of the announcement with no word from ACA, it looks like this is intended to be an unfriendly tender. I can't believe they haven't "discussed it" behind the scenes before JO went public.

The LCC is a nice idea but it is not a sure winner and there is high risk. The investors may well look at this as a means to cover their a$$es. What happens to employees has never been a concern of the bean counters and it isn't now. That's sad, but it's also true.

If the ACA Board doesn't want this, I hope they have a darn good poison pill hiding somewhere.

 

[Carl_Everett]

The investment world likes money, and that includes the "institutions". If they can imporve the value of their holdings by 25 - 34%, what do you think they will do? Falcon isn't off base. This isn't about "running an airline", it's about making a dollar.

Agreed, but they will look at MESA's stock value. If I understand this correctly, the deal is stock only. No cash involved means the deal will be based on pure speculation of the true value of MESA shares. So what does Wall Street think of MESA long term? Do they think MESA is overvalued? If they do, then it would be a bad deal. What do they think of ACA long term? Will the LCC put ACA stock higher than the percieved value of MESA? Someone posted this will be a gut check for the ACA BOD, that is an understatement.

 

[FL000]

--Blue Horseshoe Loves ACA Holdings.

--Why do you need to wreck this company?
--Because it's wreckable, all right?

--The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works.

--When I get a hold of the son of a b!tch who leaked this, I'm gonna tear his eyeballs out and I'm gonna suck his f'ing skull!

 

[captjim]

Surplus1, I was thinking just what you are thinking. This is indeed an attempt of a hostle takeover. This anouncment will get all of the ACA investers whipped into a frenzy. This gives them a way out at a profit or at the very least close to break even.

JO is a smart guy, a not so nice guy, but cunning.

 

[Splert]

Agreed, but they will look at MESA's stock value. If I understand this correctly, the deal is stock only. No cash involved means the deal will be based on pure speculation of the true value of MESA shares. So what does Wall Street think of MESA long term? Do they think MESA is overvalued? If they do, then it would be a bad deal. What do they think of ACA long term? Will the LCC put ACA stock higher than the percieved value of MESA? Someone posted this will be a gut check for the ACA BOD, that is an understatement.

Excatly...

Splert

 

[crashpad]

Mesa is the only airline stock going down today and ACA soared over $2.00!

We'll all know soon enough what will happen. Mesa struck hard and fast with CC Air, West Air and Air Midwest. Air Midwest was the only one to assimulate quietly.

On the plus side, there'll be more pilot bases and flights to non-rev on. And thinking long-term, you'd be looking at the largest regional pilot group in the world. That's seems like a lot of leverage if everyone could learn to get along.

 

[Noam]

This is nothing more than union busting at its finest.

Mesa pilots take it up the butt, ACA can no longer compete for UAL routes, Mesa buys ACA.

Glad I left ACA when I did.

Godspeed ACA...and Mesa, go to heck!

 

[FMR_RGNL_PLT]

Admittedly, I know little about the financial implications of all of this to investors, but for the pilots of ACA it must be pretty scary.

Historically, when a "merger" has taken place the employees at the smaller company, ie. ACA in this case have not benefitted. Look at what the TWA guys are still suffering through with American.

In the automobile industry I know that many people at Chrysler flew the coop after being bought out be Daimler-Benz.

Good luck to the bluestreakers.............

 

[Lou3]

In the world of Star Trek--Next Generation

Mesa = The Borg

Resistance is futile........

 

[big dog1]

From other BB

mrharvester
Junior Member

Registered: Jun 2003
Domicile: PHX
Equipment: CRJ
Position: FO
Posts: 12
You gotta admit, this is a pretty smart idea. If this happens, and that's a big IF, it would accomplish a lot of JO's goals, almost instantly. With the size of the new company, financing would be easier to come by to start a LCC with larger aircraft. Additionally, this would potentially allow ACA (Mesa) to keep the United business on the east coast and become the largest United Express carrier, not to mention the largest regional. Mesa would also sneak through the back door into some Delta Connection business

 

[Patriot328]

Re: From other BB

Mesa would also sneak through the back door into some Delta Connection business

I doubt it that part. Mesa runs into the same problem with DAL's scope clause that ACA will run into with the LCC.

Can't operate a/c with more than 70 seats. Mesa has 90 seaters, no?

There may be a get out of jail free card for some of the ACA guys after all.


Comair please take the do-do birds.... please.......... I need options!


I don't want to take a nearly $20,000/yr pay cut to go to mesa.

 

[sf3boy]

What will be interesting is to see how the Mesa MEC negotiates a merger contract. Are they going to "stand" by their current book or would they be willing to work under the ACA book? It will be kind of funny to hear them say that they just have to keep the ACA book only months after they told their pilot group that they HAVE to sign the contract that was given to them by Mesa. It won't matter though, JO will say it is the Mesa contract that will triumph. Talk about a never ending nightmare.

 

[Patriot328]

No shyt man... Look what happened to the CCAir guys... they got mutilated.

ACA's contract is far above Mesa's in pay and work rules. Johnny O would never let it stand. This is nothing but bad news for the people working at ACA.

 

[g159av8tor]

My crystal ball says that this is the only way Mesa can get the contractual number of RJs, gates and personnel it needs to "flourish" with UAL. What I don't get is that UAL is a sinking ship and doesn't have the luxury to plunder from a wholly owned UAX partner(s) to stay afloat (e.g. Delta). We UAX partners cannot financially float UAL, so why partner with a looser?

This announcement came out of the wild blue yonder.

Tailwinds...

 

[70Cuda]

Rat in the stew...

I can't help but think that United has a hand in this. What perfect way for them to strong-arm ACA. United knows it is Fuc'd if it looses the ACA gates at IAD. ACA, by announcing the LCC plans has made lots of enemies, ie. United, JetBlue, AirTran, SouthWest et al.....

 

[I.P. Freley]

Out of the loop for a few days...

Is this whole thing for real? Or is it just hot air?

 

[EOpilot]

Holy Scheisse

I didn't see this one coming.

This has a very good chance of actually happening. The BOD will have to consider this, or be held responsible by the shareholders if they decide for a LCC and fail. (ala Eastern: Frank Borman = Terry Skeen, Lorenzo = Ornstein) I think the shareholders will see this as the best way to get a guaranteed revenue flow out of a company whose management is trying right now to sell them a dream.

For a while there I was second guessing my decision to leave ACA. Good luck to all of my former coworkers.

 

[General Lee]

This twist in this plot is really making it interesting. I don't think many people saw this one coming.

Bye bye--General Lee