Mesa Finances

[OK Bud!]

This was posted on Yahoo Finance Sunday afternoon.

http://biz.yahoo.com/ap/080511/mesa_air_group.html?.v=3

 

[CX880]

Mesa sucks.

 

[CitationUltra]

This was posted on Yahoo Finance Sunday afternoon.

http://biz.yahoo.com/ap/080511/mesa_air_group.html?.v=3

If you can't make any money flying, then just issue more shares.

Is this a Great Country or what?

 

[nwa_contrails]

Look at the stock slide graphic on the side of the page on that link. Down 40% in one week...

 

[zawillif]

Hopefully their shareholders won't go for this. I guess we'll know on Tuesday.

Oh pretty pretty please Lord just let them die!!

 

[dvmthwsvan]

anybody else think that its funny that guy said going from 80 to 52.5 saved 37.5 million. maybe he should rework his numbers.

Dave

 

[wmuflyguy]

anybody else think that its funny that guy said going from 80 to 52.5 saved 37.5 million. maybe he should rework his numbers.

Dave

I think Mesa had to put 90 mil up with the court, until the final judgment came out. The original amount was 80 mil and then an additional 10 mil for any further damages and attorney fee's.

 

[1st Rate]

We can only dream that Mesa will die soon!!

 

[OK Bud!]

I just saw this at 7:30. Mesa closes the door on one airline and still gets to sell more stock. Why won't they just die????????

http://biz.yahoo.com/prnews/080514/law100.html?.v=101

 

[rickair7777]

I just saw this at 7:30. Mesa closes the door on one airline and still gets to sell more stock. Why won't they just die????????

http://biz.yahoo.com/prnews/080514/law100.html?.v=101

The shareholders are looking after themselves...the cash influx created by issuing shares MIGHT help the company linger on.

If the shareholders said no, ornstool would have probably just filed tomorrow, pretty much cutting the shareholders out.

Of course the shareholders are between a rock and a hard place...JO might simply issue the stock, take the money, and THEN file BK the next day.

 

[Mentor]

[FONT=Arial,Helvetica,Sans Serif] Soaring fuel prices have grounded yet another airline. Air Midwest, a wholly-owned subsidiary of Mesa Air Group (nasdaq: MESA - news - people ), announced on Wednesday that it will cut off service to 16 small cities in 10 states because of record-high fuel prices, insufficient demand, and a “difficult” operating environment. This includes its current scheduled services provided under the Essential Air Service program, which subsidizes flights on routes that would otherwise be unprofitable.
On Jan. 15 the company announced its decision to halt all of Air Midwest’s operations. Phoenix-based Mesa said that the cuts will begin next week and will be completed by June 30.
Mesa's shares tumbled 12.8%, or 9 cents, to 64 cents at the close on Wednesday.
“Unfortunately under the current economic conditions there was no foreseeable way to achieve sustained profitability,” said Jonathan Ornstein, chief executive officer of Mesa Air Group. “Even with subsidies from the Department Of Transportation, Air Midwest has been unable to sustain profitability for the last several years. While this was an extremely difficult decision, and one that the company worked tirelessly to avoid, we are working diligently to minimize the impact this decision will have on Air Midwest's passengers and employees."
Soaring oil and jet-fuel prices already have contributed to the shutdown this year of Skybus Airlines and forced ATA Airlines out of business.
Crude oil has hit new highs in recent months, surpassing the $120 per barrel mark. The forward price for jet fuel for the summer has risen by $160, to more than $1,000 a ton, from $840, in early February.
In March Hawaiian airlines Aloha Airlines filed for bankruptcy to stay in business, blaming high fuel costs and competition from Mesa Air on the company's inter-island routes, which was making it difficult to generate sufficient revenue. Aloha was being pushed to match Mesa's below-cost fares at a time when the airline industry is in a period of contraction due to the record-breaking cost of crude oil. (See “ Crude Costs Push Airline Into Chapter 11”)
Aloha had said the cost of jet fuel has added $71 million to its operating costs annually.
The rising price of oil has been taking its toll on legacy airlines as well. United Airlines, owned by UAL Corp (nasdaq: UAUA - news - people ), announced in March that it would be cutting back the size of its fleet to cut costs. Delta Air Lines (nyse: DAL - news - people ) reported fleet contraction and job cuts in March as well. (See " Crude Causes Cuts At United, Others")
The Air Midwest shutdown will effect cities in Pennsylvania, West Virginia, Georgia, Nevada, California, Arizona, New Mexico, Missouri, Nebraska and Arkansas.
The Associated Press contributed to this article
[/FONT]

 

[WAZUP]

"ORNSTOOL" hahahahahahah never heard that one before. Dude I was cracking up for a while on that one.

 

[gromgutten]

The fact that they are resorting to such a desperate measure would suggest that filing for bankruptcy would be the only other alternative. Issuing that many stocks is going to kill whatever is left of the stock price. Bad times ahead, surely.

 

[Soverytired]

The fact that they are resorting to such a desperate measure would suggest that filing for bankruptcy would be the only other alternative. Issuing that many stocks is going to kill whatever is left of the stock price. Bad times ahead, surely.

I agree.

However, this is such a patently obvious desperation move, I find it difficult to believe that anyone would want to purchase this stock.

I'm no stock expert, but something else must be going on here. And Mesa being Mesa, it probably is going to directly put $$$ into the pockets of the CEO and the BOD.

One last chance to rob the bank (legally) before it disappears?

 

[rickair7777]

I agree.

However, this is such a patently obvious desperation move, I find it difficult to believe that anyone would want to purchase this stock.

I'm no stock expert, but something else must be going on here. And Mesa being Mesa, it probably is going to directly put $$$ into the pockets of the CEO and the BOD.

One last chance to rob the bank (legally) before it disappears?

My thoughts exactly...

Wed: Issue Stock
Thu: Issue Executive Bonuses
Fri at 4:59 PM: Ch.11

 

[Soverytired]

Maybe this is a better approach:

Mesa is currently a penny stock. It's attracting a different kind of investor now . . the kind of investor that favors day-to-day volatility over quarterly or annual profits. There are plenty of day traders out there willing to pick up a cheap stock, and they'll pick up the additional shares being issued.

So .. . short term, Mesa may well make enough cash to meet it's 32 million dollar payment. The price will be a dilution of the already low stock price, and the institutional investors are going to flee. Which will depress the stock price even more.

Bad news all around. I wonder if Mesa is deliberately lowering it's stock price hoping for an outside takeover bid? I'm sure the CEO & Co. will then be able to rely on their golden parachutes to survive, which they might otherwise not in the case of a bankruptcy.

 

[rickair7777]

Ooops.