Mesa Loses $20 Million On Go! (or $100m?)

[Soverytired]

(this does not include the 80 million dollar judgment)

Wow.

Anyone care to speculate on why Mesa keeps pouring money into this dog? Whatever reasons it may have had at the beginning for starting this, one wonders why they keep pursing it.

Good money after bad, and all that.

http://blogs.usatoday.com/sky/2008/01/mesas-go-has-lo.html

Mesa's go! has lost $20 million since start-up

Mesa Air's go! start-up carrier has lost nearly $20 million since it began intra-Hawaii service in June 2006, The Honolulu Advertiser reports. The paper cited a federal filing made by Mesa. "Go!'s low fares helped boost interisland passenger traffic but have exacted a heavy financial toll on the airline and Hawaii's dominant interisland carriers — Aloha Airlines and Hawaiian Airlines. Since go!'s launch in June 2006, Aloha and Hawaiian have lost a combined $64.7 million," the Advertiser writes. Go!'s losses reported in the filings do not include an $80-million settlement against Mesa, which lost a court case for misusing confidential information to help go! compete against rival Hawaiian. Mesa CEO Jonathan Ornstein says go! is committed to Hawaii, but adds "clearly, we're disappointed with our results."

 

[TAWS]

Maybe the idea was to drive one of the dominant carriers into a position wherethey would seek outside investment/bailout. Whereupon JO would ride in and buy them for a song. Unfortunately, it didn't work and now it would look really bad to (insert interested party here) if they pulled out. Maybe someone else is behind the red door, forcing Mesa to stick it out, in case they succeed in driving one of the others into a hole!

Just a theory ............................

 

[go!ng for broke]

Maybe JO did not know he was losing money till he read about in the paper???? When exactly was this man disappointed in the GO! profits?? Where are the hotel room package profits? JO blinked, raised fares and now he is the one on the ropes.

 

[sqwkvfr]

It seems pretty apparent that JO smelled blood in the water during the the home carrier's financial woes and thought that he could put one out of business and take it's place in a favorable market.

His plan has failed.

You're right, it's good money after bad, but you can bet that JO isn't going to do something if he can't see a financial light at the end of the tunnel.

 

[DoinTime]

Anyone care to speculate on why Mesa keeps pouring money into this dog? Whatever reasons it may have had at the beginning for starting this, one wonders why they keep pursing it.

Just think of all the corporate expensed trips he can take to Hawaii now that he has an operation out their.

 

[islandhopper]

(this does not include the 80 million dollar judgment)

Wow.

Anyone care to speculate on why Mesa keeps pouring money into this dog? Whatever reasons it may have had at the beginning for starting this, one wonders why they keep pursing it.

OK I'll bite... Everybody told JO he would lose in Hawaii but he did it anyway.
CONFUCIOUS SAY: "CHEAP ADVICE OFTEN EXPENSIVE TO IGNORE"

 

[viper548]

Doesn't Aloha get their day in court soon? There goes another 100M for 2008

 

[J and E's Daddy]

JO went around saying What ACA did by breaking off on their own simply wouldn't work. Meanwhile, Mesa tries the same thing and JO thinks it'll work. How hilarious.

 

[fly4surf]

He did it for the Hawaiian people, remember!
He is such a great guy he wanted auntie and unkle to get that outer island visit with the ohana. He is a warrior for the people.

Oh wait, what does a mesa job pay....nevermind.
And his off camera intentions...as stated above.

And yes, it is about to be 200M! HA