MESA and ACA may merge!

[lowecur]

Jonor still has not included ACA cash in the offer. $250M plus MESA cash of 140M. If he borrows $250M from a lender, he can pay it back once the merger is completed. I still think you may see a sugar daddy emerge with Jonor to up the antie. Look for an offer in the $16. to $18 range shortly. Will the shareholders bite? I doubt it.

 

[blzr]

As I understand it, J.O got in a mess of trouble when he was on Wall Street and left the country to work for Branson before going to Mesa. If he does step out of line in this day in age his kahonies will be in a vice real quick.

This is for real. Look out ALL you majors. If you think your scope will ever hold up with all that is going on in the industry, you are sadly mistaken. You will get sold down the river before you can say FAT SPLIFF. (which is what you are smoking if you think you are somehow immuned to the anthrax of aviation.... MESA)

 

[George Jetson]

That would be insider trading and the SEC would have had JO up on security charges if that were true

Actually, JO has been convicted of security charges in the past. I don't remember the details though. I believe it was before his airline career.

GJ

 

[ChinaClipper]

Can a Leopord Change its Spots...

Forbes magazine article Mid Apr 99. or Jonathan G. Ornstein vs S.E.C. (1992) Now lets see how ACA guys react to a little JO love......it ain't fun.....

 

[BlueRidger]

Mesa's bid is a poor man's effort to achieve the growth that JO has promised to USAIR and United but is harder and a lot more expensive to deliver than mesa planned. All the planned growth will be a big drain on the small profit margins that mesa has. mesa may not have the ability to survive in the long term based on their current contracts and pay for all their growth. Using a leveraged buyout may be the only way to pay for and accomplish the growth plans. JO also knows that when ACA starts the LCC there will be an EastCoast bloodbath with USAir being the most affected. At least one company wil not stand. Quite possibly ACA. But in the meantime it will threaten both U and UAL who are not in a good shape to fight this battle and could also go under in the process which would really hurt mesa.

The take over of the ACA pilot group would also be one of the worst nightmares for mesa. They are almost the same size as the mesa pilot group. They have had good work rules and the best pay amongst the regionals mostly due to soft pay. (rank based on ALPA dues recieved). The potential to go out on our own is a strong draw to the pilot group. Trying to force the mesa contract on them would probably result in serious job actions that would probably be able to make even JO feel the pain.

I think this is a desperation gamble by mesa.

 

[Heavy Set]

BlueRidger,

Very well said. I agree that Mesa has a lot to lose if UAL and USAirways are adversely impacted by a new LCC in the Northeast. I feel sorry for any ACA people who would have to join a combined MESA/ACA entity - nothing but negatives to look forward to with lower pay and cutbacks likely...

 

[mckpickle]

ACA, you guys have nothing to worry about

We've all seen how easy MESA pilots roll over. You should have no problem getting them to agree to be stapled to the bottom of YOUR list.

 

[climbhappy]

all JO had to was announce the share sale. as an officer of the company, he is certainly privy to everything.therefore as long as the paperwork is complied with and the deal tanks, he can buy back all he wants to.

the borad obviously backed the merger proposal, so he hasn't done anything illegal.


(AS A FOOTNOTE, HE DID LOSE HIS SECURITIES LICENSE IN THE EIGHTIES TO DO "CHURNING" CLIENTS ACCOUNTS. HE AVOIDED PROSECUTION, HOWEVER, HIS BOSS, ROBERT BRENNAN OF FIRST JERSEY SECURITIES WAS LATER CONVICTED OF SECURITIES FRAUD AND IMPRISONED)

 

[ChinaClipper]

Geez I almost forgot..

for any predictions as to how JO will "assimilate" the pilot groups, just ask any WestAir pilot about how that all worked out 1) Draconian threats 2) Steal the routes 3) Sell the airplanes to SkyWest and leave the YV tail numbers as a reminder to this day about JO style labor relations.....start digging a good foxhole as my DI used to say......

 

[House_X]

$$$$$HIIIIIIIIIIIIIIIIIIT........no way baby...no way I'm going to JO...somebody pass the Harikari knife...I'm goin' out like the last samurai...