Mesa files ch11 bankruptcy

[pdub20s]

Now this is what DL has been waiting for, how long until the press release on DLnet with the contract being cancelled with Mesa?

A BK judge would quickly put a hautl to that..

 

[ACL65PILOT]

Just hope that in 1113C that the pilots do not agree to a deplorable contract. That will not be good for any of us.

 

[ePilot22]

Brick has an excellent point here. Back when fuel was cheap, and mama was footing the bill whether you flew 1 or 50 (well, 42/no bags with weight restrictions) it was easy to make money. Thow in 0 percent financing from Canada or Brazil for jets, and it's no wonder the weeds got out of control.

Throw in the ancillary costs of piss poor customer service, stranded pax and bag delivery and loss of good will, and you can see why some majors want out, and places like SWA don't want in. Even AirTran wants to keep arms length from their new deal.

The sad fact is that with oil at $70 and without an allowance or free fuel from mama, there is no way to make money with an RJ, and it's damn hard to make it with a 1900 or a Saab.

To make any money, the regional market should be what the commuter market always was: 402s and Twotters, and maybe the occasional BE99. You HAVE to have a niche where people have no other option...like Nantucket, Alaska or some scorpion infested hole in west Texas.

The "new market realities" simply don't support regionals at their current size. There is going to be a major re-wind, and when the new flight/duty regs hit, it's only going to accelerate, because hiring crews costs real money.

The has never been a reliable way to make money in the commuter biz, unless you're on the government teat.

Nu

Sorry Nu, I'm going to respectfully disagree with you here.

What you are saying isn't anything that hasn't already been said. And that's just it: Words. No action.

I'll believe my company is getting CRJ1000s or EMB190s when they are painted and parked at a jetbridge. I'll also believe we are losing aircraft when they are no longer flying the line.

Until then it's all talk.






eP.

 

[grog_sit_reserv]

I'm pretty sure a contract can be imposed by the judge, n'est-ce pas?

 

[olympus593]

A BK judge would quickly put a hautl to that..

Is the judge going to force DL/US/UA to extend contracts that are about to expire? Don't think so. If I was you I would be more worried about what the judge going to do to your already piss poor contract.

Mesa Sucked.

 

[SkyNation]

JO: We're Ch. 11

USAIR, DAL, UAL: Sweet, we were looking to get rid of your sorry ass, anyway. Contracts, CXd!

JO: Hey Mr. BK Judge, these dudes are trying to CX our contracts! If you allow that, you'll put the hurt on us even more, causing our downward spiral to accelerate, costing tons of people their jobs.

BK Judge: Hmm, guess so. Sorry, USAIR, DAL and UAL.

 

[spitfire1500]

WAAAAAAAAAAAAAAA HAHAHA


HAHA

Johnny took your PBS

THEN FILED BK!

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


MESA SUCKKKKKKKKKKKKKKS

Took their PBS and block or better!! Laugh it up...unless they go chapter 7 this is just lowering the bar more at the regionals! Now everyone will be competing with a leaner more streamlined Mesa!

 

[spitfire1500]

Just hope that in 1113C that the pilots do not agree to a deplorable contract. That will not be good for any of us.

Supply and Demand..there are thousands not working..so you know JO is gonna give em one in the shorts and they are going to take it.

 

[topdawg]

MESA pilots have been fcking this industry for long enough! Payback is going to be sweet!

 

[Metro752]

Quote from elsewhere.

All of the facts above can be seen on the Mesa Airlines website under, financial information.

http://phx.corporate-ir.net/phoenix....-reportsAnnual

1. Direct quote from the 2008 annual report:

Airways:
"The code-share agreement is subject to termination prior to that date in various circumstances including: If either US Airways or we become insolvent, file for bankruptcy or fail to pay our debts as they become due, the non-defaulting party may terminate the agreement;"

UA:
The code-share agreement is subject to termination prior to these dates under various circumstances including: If either United or we become insolvent, file bankruptcy or fail to pay debts when due, the non-defaulting party may terminate the agreement;"

DL:
The agreements may be subject to early termination under various circumstances including: If either Delta or we file for bankruptcy, reorganization or similar action or if either Delta or we make an assignment for the benefit of creditors;"


2. From the 2008 annual report:
-200: 2 owned, 50 leased; total: 52.
-700: 8 owned, 12 leased; total: 20.
-900: 14 owned, 31 leased; total: 45.

All Dash-8s and ERJs are leased.

 

[Jar Jar]

Took their PBS and block or better!! Laugh it up...unless they go chapter 7 this is just lowering the bar more at the regionals! Now everyone will be competing with a leaner more streamlined Mesa!

The creditors have to agree that mesa can be profitable in the short-med term before they agree to let Ch 11 actually happen.

MESA has to make the case to its creditors that they'd be profitable enough versus selling their assets continuing operations basically as USAirways Express (49 airframes currently). That'd be a hard sell considdering that they've lost over $100M in the last 2 years, while flying over 140 airframes.

Liquidation might be more appealing to the creditors. Last balance sheet has their total assets valued at 891m, total liabilities at 801m. That's ~90m that MESA would have to be able to 'earn' to justify its existence. How many years would that take? Or, would the creditors rather just take their losses and divvy up that $90m now?

 

[WAVIT Inbound]

Quote from elsewhere.

That being said I think Chapter 7 is in order and JO knows it. They are only filing chapter 11 now instead of straight to 7 so that JO can say Delta, United, and US AIR forced them into chapter 7 and it's not his fault.

 

[SkyW120]

That being said I think Chapter 7 is in order and JO knows it. They are only filing chapter 11 now instead of straight to 7 so that JO can say Delta, United, and US AIR forced them into chapter 7 and it's not his fault.

exactly - Mesa just got very cheap now that they can shed all their bad debt. Look for another regional work out a deal and cherry pick their profitable assets (US Air 900 flying and United 700 flying). They will let the rest of the operation slide downhill as it has no value.

 

[Fly2AK]

Mesa still sucks!

 

[olympus593]

MESA pilots have been fcking this industry for long enough! Payback is going to be sweet!

Amen! Stick a fork in them!