Mesa files ch11 bankruptcy

[contrail67]

Time to buy XJT stock...Express Jet will fill the void with a better product...

 

[EatinRamen]

Can't their major partners such as Delta, terminate their contracts with Mesa now that Mesa has filed for Bk?

 

[Ezralite]

This won't have any effect on Mesa sucking, right?

 

[Jar Jar]

WAAAAAAAAAAAAAAA HAHAHA


HAHA

Johnny took your PBS

THEN FILED BK!

LOL:!::!:!:!!!!


MESA SUCKKKKKKKKKKKKKKS

 

[Minimaniac]

From the most recent article I read, Mesa has 130 total aircraft. Of that, 52 are currently parked and another 25 are expected to be retired soon. That is 77 of 130 aircraft! Bankruptcy MAY allow Mesa to dump those planes with minimal financial penalty, in which case Mesa may have a chance to restructure. But, Mesa needs to keep enough code share flying to employ the remaining 53 aircraft. I expect one of the major carriers will try to keep some CRJ-900 flying, but I don't think it will be enough. Also, someone needs to finance Mesa's exit, as Mesa's creditors are still owed money after bankruptcy. If Mesa actually wins the $70 million claim against Delta, they may have a good start on that financing. However, it seems a lot of stars need to align to get Mesa out of the courts.
Look how long Frontier stayed in the bankruptcy courts, and they were a name brand airline with a proven profitable business plan. A fleet of cheap Airbuses with trained pilots and a pretty sustainable route system only got attention from Southwest, who merely wanted to shut the doors on Frontier themselves, and RAH, who had no experience or bankroll to make a convincing argument for long term survival of Frontier. Mesa is not likelt to attract attention from anyone in the industry, and at best a few investment firms who will only use a post-BK Mesa to make a quick buck and then let it eat itself alive.
Sorry to all the good people who were just trying to get their careers started and will end up victims of Johnny O's ineptitude.

 

[CRJ puppy]

Now through the bankruptcy process, Mesa will reduce their operating costs making them an even cheaper competitor in the future. That is not good for the rest of the regionals in the industry. USAirway's bankruptcy filing post 9/11 and cost restructuring was basically the first domino that fell requiring all major airlines to take concessions over the next 5 years after their filing.

Unless Mesa does a Ch 7 liquidation, this is not good news for anyone in the regional industry. From the article, it doesn't sound like this is going to a Ch 7.

Agreed completely. Not a good thing for all other regionals...

Be careful what you wish for.

 

[TWA Dude]

Also, someone needs to finance Mesa's exit, as Mesa's creditors are still owed money after bankruptcy.

The news releases stated they're self-funding their bankruptcy (no debtor-in-possession financing). If they have enough cash they can also exit that way. Though they haven't said it perhaps this is a pre-pack bankruptcy.

Let's keep our eyes on the ball here. JO sucks but the real sufferers in Chapter 11 are the employees. I wish them well.

 

[Jar Jar]

Once a business files for Chapter 11 bankruptcy, its creditors are not allowed to attempt to collect previously incurred debts except through the bankruptcy court. Under some circumstances, creditors can force the company into Chapter 7 bankruptcy, if it seems that this will result in more compensation for the creditors.

http://www.economicexpert.com/a/Chapter:11.htm

 

[MCDU]

Mesa does sux, but it was one of the few non PFT airlines back in the days when the majors were hiring. Many pilots that went to Mesa paid their dues. Most airlines were PFT. Comair, ASA, Express Jet, ACA just to name a few.

The real airline that suxs is REPUBLIC. These guys are taking away many jobs and enjoying quick upgrades at the expense of many seasoned pilots.

Republic and Bedford sux 10 times more then MESA.

M

 

[BrickTop]

With Fee for departure contracts finding their demise in the industry the shared risk operation will be soon to replace those beneficial contracts that enabled Mesa and other regionals to be very financially successful. The future will demand more shared risk from regionals and that will require a large working capital. Currently there are only 2-3 regionals positioned with large cash reserves to operate a shared risk operation. For this reason I do not see Mesa as having a large force in the regional market as in years past. I doubt they will liquidate into CH.7 but will likely become a small niche market operator. What is good about the filing is is shows the importance of quality management and that market balance will erode even the cheapest product when the quality suffers so substantially.