Mesa files ch11 bankruptcy

[Bringupthebird]

With clapped out DHC-8's and CRJ-200 being worth scrap value, I wouldn't be surprised for a judge to see Mesa worth more to it's creditors as a going concern and deny liquidation unless petitioned to do so.

 

[rickair7777]

There are varying degrees of "deplorable," but didn't Delta, Usair, and United do that?

Senior FO's at those companies can still pull down six figures...not what it used to be, but not deplorable.

 

[Ezralite]

At least now Whornstein can start his second career as a hip hop dancer:

http://www.nytimes.com/2007/01/19/business/worldbusiness/19iht-wbspot20.4263347.html

(be sure to read the 5th paragraph)

 

[kf4amu]

With clapped out DHC-8's and CRJ-200 being worth scrap value, I wouldn't be surprised for a judge to see Mesa worth more to it's creditors as a going concern and deny liquidation unless petitioned to do so.

Big rumors at Piedmont about picking up the 6 PHX Dash 8's Mesa operates.

The Ask Piedmont questions that normally come out Sunday afternoon are being delayed until tomorrow afternoon. I wonder if there is a big announcement at Piedmont that they are getting those 6 aircraft...

 

[RJP]

This is HORRIBLE news!

 

[WSurf]

Big rumors at Piedmont about picking up the 6 PHX Dash 8's Mesa operates.

The Ask Piedmont questions that normally come out Sunday afternoon are being delayed until tomorrow afternoon. I wonder if there is a big announcement at Piedmont that they are getting those 6 aircraft...

Yea, we heard that 2 weeks ago when our President flew out to AZ for a week to sit down with US Airway Group. Guess Mesa doesn't have the money for the Heavy Checks coming up and they are willing to dump them for cheap. Who Knows.

 

[WSurf]

Popeye0537 wrote: "I may work for S^itty wages but those S^itty wages allowed my compnay to PURCHASE your's".

I hope RAH is next!

Holly Poop Balls, no he didn't?

 

[olympus593]

Holly Poop Balls, no he didn't?

Yes he did refer to the LCC section, RAH buying Midwest.

 

[WSurf]

Yes he did refer to the LCC section, RAH buying Midwest.

Well then that F'er needs a blanket party!

 

[XJWRENCH]

Was only a matter of time, esp when Paul Foley joined that ship....

 

[ttuite]

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.

Thanks for posting this. This is the most insightful read on the situation the I have seen in a long time. Those happy the Mesa declared may regret that it happened as their pay slowly winds down and their work rules evaporate as their companies struggle to match Mesa dollar for dollar.

 

[Jar Jar]

Johnny O is a man with a dream(and a tiny ego). MESA was supposed to be the world's largest regional airline, and he'll be damned if he's going to file CH.7 and just let (everyone else's m'fing problems) cause him to lose his airline.

Ch. 11 is an ego move. Whether or not it goes to 7 is now up to the creditors and court.

 

[islandhopper]

Certainly the BK judge assigned this case will be as impressed with the sociopath as Judge Faris and King were in Hawaii were. My hope is the judge assigns a trustee to look over Mesa ASAP and gives the convicted felon a swift kick to the unemployment line.

 

[ttuite]

Certainly the BK judge assigned this case will be as impressed with the sociopath as Judge Faris and King were in Hawaii were. My hope is the judge assigns a trustee to look over Mesa ASAP and gives the convicted felon a swift kick to the unemployment line.

Better watch yourself. JO is coming to get you!!!!!!

 

[ePilot22]

It was foretold by the prophecy that it would happen. God bless us.

We are not out of the woods yet, WE STILL HAVE OPERATORS LIKE GOJET. AS SOON AS THEY'RE GONE, THINGS WILL IMPROVE!

Nicely said.






eP.

 

[islandhopper]

Better watch yourself. JO is coming to get you!!!!!!

JO is too busy for me, he has been planning for this day for at least the past 8 years I am sure he is quite excited to move ahead finally.

Hopefully he has enough rope to do the job right.

 

[pipers]

BK only works in one direction with regard to contracts...you can get out of YOUR obligations.

You cannot force your customers to continue to use your services unless there was an existing contract to that effect. Since all those contracts have BK clauses, they are effectively null and void today. It's possible a judge might issue a short-term stay, but it won't hold up for long. The contractual provision in this case is crystal clear, with no grey area or room for argument.

Basically DAL, UA, and US have a choice to make...I wonder what DAL will do

Bump to what rick said.

I don't see Mesa as much as a threat in the future. In fact, the have proven time and time again...you get what you pay for. I don't think United, Delta or US Air are in any hurry to extend/sign contracts in the future. Especially when they will have no $$ to share risk...

I am careful what I wish for....and it seems to becoming to pass. All the smart Mesa guys already jumped ship.

 

[buscap]

I could be wrong, but with a sort've working island operation and as a witness to RAH, perhaps the MESA man is setting himself up for a move out of the regional business.

And could you think of a better pilot group to help him low-ball into the low cost carrier biz than that beat up bunch of pilots he's got?

Things that make you go hhhhmmm??

 

[Tweaker]

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

O...MY...GAWD. I laughed, I cried, I peed a little. You sir, nailed it!

 

[WSurf]

Bottom line a Hamburger was made so cheap that nobody wants to buy it.