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Mesa and Delta again...

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4got2flare

Well-known member
Joined
May 19, 2006
Posts
79
Press ReleaseSource: Mesa Air Group Inc. Delta

Cancels Freedom CRJ-900 Delta Connection Agreement
Tuesday August 5, 6:00 am ET
PHOENIX, Aug. 5 /PRNewswire-FirstCall/ -- Mesa Air Group Inc. (Nasdaq: MESA - News) today announced that on August 1, 2008, Mesa received notification from Delta that it is terminating Freedom's CRJ-900 Delta Connection agreement, once again alleging Freedom failed to maintain specified operational performance, as outlined in the contract.(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)
[SIZE=-2]Source: Mesa Air Group Inc.[/SIZE]

· [SIZE=-1]Click Here to Download Image[/SIZE]
Mesa strongly disputes these allegations and intends to vigorously defend its contractual rights. Mesa believes the cancellation was driven by Delta's stated intention to reduce capacity and its inability to reduce aircraft at its wholly-owned Comair subsidiary without incurring significant ongoing expense.
Freedom currently operates seven CRJ-900 regional jets for Delta Connection, with a further seven aircraft scheduled to enter service by May 2009. The Company subleases the Aircraft from Delta for $1 per month per aircraft and these aircraft will be returned to Delta in connection with this termination with no further financial obligation to Mesa.
This latest action by Delta is at least the fourth instance in recent months in which Delta has taken unilateral and disputed action against its regional airline partners. This contract cancellation is not dissimilar to Delta's recent action against Freedom in respect to the ERJ-145 Connection Agreement, which resulted in Mesa winning a preliminary injunction, in the Federal Court in Atlanta, enjoining Delta from terminating that contract.
"For many years Delta has built a reputation of working closely with its regional airline partners in a spirit of co-operation and good faith," said Mesa Air Group Chairman and CEO, Jonathan Ornstein. "We are disappointed to see Delta now appears to have chosen a different approach with its regional airline partners. We appreciate the difficulties faced by Delta and remain willing to work cooperatively in the mutual best interests of both companies," Mr. Ornstein added.
 
"Freedom currently operates seven CRJ-900 regional jets for Delta Connection, with a further seven aircraft scheduled to enter service by May 2009. "



TO: Comair Team
FROM: President John Selvaggio
RE: Delta Connection Opportunity Modifies Plan
Our flight schedule for the remainder of the year continues to shift dramatically. Most recently,
Delta Connection requested that we operate additional CRJ900 aircraft beginning in October. In
order to be successful, we must make the following adjustments:
- Fleet: Our maintenance team will begin receiving additional CRJ900s in September. We
will start flying up to three of these aircraft in October, and operate a total of seven by the
end of November. The addition of the CRJ900s may not incrementally change our longterm
fleet outlook, and we still anticipate reducing our complement of 50-seat aircraft by
the end of year. Eight CRJ100/200 aircraft will be returned to lessors when their leases
expire, and the remaining 50-seat planes will be utilized less.
 
"For many years Delta has built a reputation of working closely with its regional airline partners in a spirit of co-operation and good faith," said Mesa Air Group Chairman and CEO, Jonathan Ornstein. "We are disappointed to see Delta now appears to have chosen a different approach with its regional airline partners. We appreciate the difficulties faced by Delta and remain willing to work cooperatively in the mutual best interests of both companies," Mr. Ornstein added."

Sucks to get the sh!tty end of the stick, eh Ornsteinfarb? A bigger bully is always around to put you in your place. SUCK IT!
 

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