MESA Loses 24 Million!!!!!

[millhouse21]

Speaking of APUs, I 've got to say that if my company made me sleep on the plane, that MFing APU would be running all night long. Wonder what the cost of running an APU all night long is compared to the cost of a hotel room?

 

[CFIse]

Speaking of APUs, I 've got to say that if my company made me sleep on the plane, that MFing APU would be running all night long. Wonder what the cost of running an APU all night long is compared to the cost of a hotel room?

I don't know, but I'm sure the company knows since they provide and pay for that hotel room you're wondering about.

 

[Mesa Beer]

does anyone know how much of this loss stems from GO!? Seems like the ship is really sinking over there

This has nothing to do with go! We have Aloha and Hawaiian on the run! We shall soon be victorious with help from Allah!

 

[pgcfii2002]

I love Mesa.

 

[Mesa Beer]

$600,000 my ass.... "go!'s operating results were $700,000 below plan" (mesa press release). Below plan being the key words there. Maybe they came out here willing to lose $10 million to get Aloha out because it seemed easy and would turn into a good investment. That would make it $10.7 million so far. The true number Im sure will never be exposed. JO's already blaming it on ******************** like bad weather and Im sure the numbers will be absorbed into his other excuses.

Oh and fcuk GO!

Please provide your name and mailing address so our legal department can look into SUING YOUR FUKKING ASS MOTHER FUKKER!

Unless you start apologizing to me every day on this forum for the next 7 days I will dance with your termination papers in my hand one day WHEN I OWN YOUR SORRY PUA MAHU LANI AIRPLANES.

 

[Mesa Beer]

To try and give a balanced perspective it should be noted that Mesa had a pro forma profit. It didn't meet analysts expectations by quite a margin, but it was still a profit.

What dropped it to the loss was 2 major issues:

- Mesa "paid to play" for the United contract. That payment was being amortized over the life of the contract, Mesa has decided that the contract is no longer profitable and wrote the entire amount off in one quarter.

- Mesa made signficant capital improvements to get the Delta Dash fleet flying, they were amortizing that investment, but that contract isn't going to be profitable and it's being cut short - so they wrote that amount off in one quarter.

This was a "take out the trash" quarter - once they realised that they were going to miss analysts expectations (mostly, as I understand it, because they missed collecting on some (all?) United incentive payments, they got a power by the hour increase from GE they didn't expect, or at least didn't plan for, and they were getting raped on APU overhauls) they decided to throw everything out in one quarter.

By getting rid of the amortizing payments they make future quarters look a lot better. Also note that they got United to take some fuel costs directly, as opposed to passing them through the books as revenue. Since it was always a pass through there was no profit associated with it, so now any profit will be a larger percentage of a reduced revenue number - which the market will approve of going forward.

So Mesa will whine to United to get some kind of relief on the contract, they've already negotiated a deal with Delta MX to handle the engine work so they'll lose the GE power by the hour issue in a few quarters and who knows what will happen with the APUs, but expect a hot summer at Mesa.

It is STUNNINGLY difficult to lose money on fee for departure - although I have no doubt Mesa could handle it if they wanted. The "at risk" flying is the EAS and go!, and as a percentage of the companies revenue those are small potatoes (really, go! would be hard pushed to have a material effect on mesa financials, despite conspiracy theorists ideas).

If it was a play to get the pilots to knuckle under it was REALLY BADLY planned since:

- section 6 dosn't open until late summer, and the company has steadfastly refused to negotiate any earlier, and why would they?

- even with section 6 open push won't come to shove on the negotiations for at least 12 months - we need to bat a few totally unacceptable offers from both sides across the table a few times before anybody gets serious.

- Mesa didn't blame the pilots - which you'd figure they would if they were going to try some leverage.

I'd be willing to bet Mesa won't be able to stop itself being profitable going forward, albeit perhaps at reduced numbers, but after dumping the trash like that expectations are going to be lowered anyway. If Mesa wants to use lack of profit as leverage to screw the pilots - and they might, this wasn't the quarter they played that card, it's yet to come.

YOURE FIRED

 

[Mesa Beer]

I see you on this board as well as the mesa forum...You always have an excuse and it is never that bad to you. What a jerk! I am a mesa pilot as well and you have not a clue. It is bad over here. How many days you getting off? Do you not have a life? You obviuosly don't have loved ones or if you do they don'y love you cause they have no idea who you are. You always make excuses...They took a loss and don't be an idiot about it. You need to get off "JO's kool aid hose"...have a lil more respect for yourself!

Don't make us sound like you are the majority, you are on your own pal!

YOURE FIRED TOO

 

[Mesa Beer]

OK.

As for the Go! interisland venture.... I won't go there, other than to say that I hope JO wins so I can have some Mesa Beer and get back under OJ's desk.

YOU ARE SO NOT FIRED!

 

[Mesa Beer]

Heh. Speaking of China, someone told me the #1. purpose of a China operation is to make it extremely easy to embezzle money from the company,

YOURE DOUBLE FIRED AND WERE ARE GOING TO SUE

 

[Shrek]

This loss is because plywood was up 300% since they are now rebuilding new orleans.

THAT was good............lol