Mesa to file bankruptcy

[No.W.]

If you're out of cash and can't raise any your outside vendors cut you off. If you can't get parts DMI's start to expire and planes go AOG and don't move. Chapter 11 may help with the $37.8 million but not your opperating expenses, if you can't pay those you can' continue to operate. I think the final implosion will happen very quickly and sooner than you might think. My bet is they won't make it until June, file ch. 11 to forestall the June 16 payment then nothing but smoke and rubble within a week. Noone is going to accept MESA stock in lieu of cash, that is J.O.'s pipe dream.

Those are awfully good points.

 

[WAZUP]

From an inside source (HNL chief pilot). Mesa to file bankruptcy very soon. Discuss.

VERY NICE!!!!

 

[spitfire1500]

Mesa's vendors wont cut them off. This fuel thing is going to turn into another 9-11 and vendors will be begging for any business they can get wherever they can get it. After 9-11 Mesa got some of those ERJ's for a song.

 

[rickair7777]

My guess: BK and suspend the leases in the ERJ 145s. Continue ops everywhere else.

That's not all he's going to suspend...

20% across-the-board pay cut, and the "final solution" for the few remaining workrules.

You will HAVE to answer the phone on your day off.

Schedules will be assigned on a day-by-day basis...you find out what you're doing tomorrow at 1800 today.

Days off will be FAR days off...24 hours in an hotel in DTW, then back for 6 more days.

If your trip finishes out-of-domicile, no space-positive home

etc, etc.

 

[eaglefly]

Mesa's vendors wont cut them off. This fuel thing is going to turn into another 9-11 and vendors will be begging for any business they can get wherever they can get it. After 9-11 Mesa got some of those ERJ's for a song.

They may have got them for a song after 9/11, but now they couldn't dump them for a mousefart.

The DAL/NWA merger will leave some dance partners available for UAL and U to replace Mesa.

J.O.'s screaming down the street in one of his motorcycles with bad barakes and is heading for a tree.

I LOVE it !

 

[Skippy]

lsu is number one usc is number 2 georigia number 3


notre lame is like 103

 

[Soverytired]

Speaking of cuts after 9/11, when I was there the rumor was that the braintrust approached ALPA and asked that crews be consolidated to a single room for overnights.

They said no (thank god). However, in BK, this simple contract provision may go by the wayside. Ugh!

I can see it now:

TV remote will be assigned by seniority order . . .

 

[flap operator]

Ask any Mesaba or Comair employees how long it took to get the concessions implemented. The company cannot unilaterally throw the contract out the window RIGHT AWAY. If the company wants concessions they have to negotiate them with the unions. If that doesn't work, like in the cases of Comair and Mesaba, they file an 1113.c case and take it to court. It was a long, tiring and drama filled process to get the concessions from labor. And even then, they spent more money litigating than they saved in our give backs. Unfortunately the law will actually require the unions to talk about concessions to the devil, I mean JO. It's not like things change overnight, but I don't think Mesa has near the staying power in Ch11 than Mesaba or Comair.

 

[USCtrojan]

Why yes it is, Go Irish

Such a nice picture, such a terrible choice in team.....your choice ;-). Good luck in 2008!

Trojan

 

[jim718181]

Anyone think that if Mesa goes away Aloha will start up passenger ops agian?

 

[brokedash]

Soverytired -tired
"Ask anyone who's ever worked at at BK airline . . . it always comes as a shock to the working stiff."

Shock? How, the wiriting is on the wall man. Do you think anyone at Skybus was saying the company will be fine? Do think people at Aloha where shocked to learn of the shutdown when they had a 10 day advanced notice? Do you think anyone at MAG is drinking the kool aid, besides perhaps JO and ML, that makes one think bankruptcy will not happen.

It's not a shock and I'm one of many currently in the regional biz where really nothing comes as a shock.

Okay, off that soap box.

MAG will enter bankruptcy and I feel it will happen sooner than later. We all know what type of beating the stock has been taking and the several million shares that are being dumped daily as MAG nose dives from being kicked off the index fund.

We are all aware of the litigation JO has become immersed in and how he will not win a majority of the suits, pehaps the Delta suit being the exception.

One question that largely remains unanswered is what Mesa's has avialable in the bank. They have to have something or they wouldn't be operating right now. At the end of the last quarter they had 80-90 mil at their disposal, considering operating cost, liabilities and other expenses, where are they at now?

MAG will not starve off Bankrupty, but the current amount of cash they have in the bank will directly relate to how much longer they can hold out. Only after crossing a certian threshold can they petition for bankruptcy.

Once the company enters Chap. 11, will they sustain the income to keep operating or will there contracts stay intact? Remember, the majors might say they despise Mesa, but they'll put up with them as long as Mesa offers the best price. If one contract is droped Mesa will downsize but upgrade equipment and carry on. If they lose more than one contract, JO better have a hail mary up his sleeve, or the rose colored glasses get knocked off and its GAME OVER.

Oh, and remember there will be at least a couple of other regionals circling Mesa like hawks waiting to force a move on JO in court that could see a court sanctioned sell off of the companies profitable assests to the competition.

Anyrate, JO will soon be entering shark infested waters, time will tell if his skin is thick enough to bat off attacks...

 

[Gr82Aviate]

Soverytired -tired
"Ask anyone who's ever worked at at BK airline . . . it always comes as a shock to the working stiff."

Shock? How, the wiriting is on the wall man. Do you think anyone at Skybus was saying the company will be fine? Do think people at Aloha where shocked to learn of the shutdown when they had a 10 day advanced notice? Do you think anyone at MAG is drinking the kool aid, besides perhaps JO and ML, that makes one think bankruptcy will not happen.

It's not a shock and I'm one of many currently in the regional biz where really nothing comes as a shock.

Okay, off that soap box.

MAG will enter bankruptcy and I feel it will happen sooner than later. We all know what type of beating the stock has been taking and the several million shares that are being dumped daily as MAG nose dives from being kicked off the index fund.

We are all aware of the litigation JO has become immersed in and how he will not win a majority of the suits, pehaps the Delta suit being the exception.

One question that largely remains unanswered is what Mesa's has avialable in the bank. They have to have something or they wouldn't be operating right now. At the end of the last quarter they had 80-90 mil at their disposal, considering operating cost, liabilities and other expenses, where are they at now?

MAG will not starve off Bankrupty, but the current amount of cash they have in the bank will directly relate to how much longer they can hold out. Only after crossing a certian threshold can they petition for bankruptcy.

Once the company enters Chap. 11, will they sustain the income to keep operating or will there contracts stay intact? Remember, the majors might say they despise Mesa, but they'll put up with them as long as Mesa offers the best price. If one contract is droped Mesa will downsize but upgrade equipment and carry on. If they lose more than one contract, JO better have a hail mary up his sleeve, or the rose colored glasses get knocked off and its GAME OVER.

Oh, and remember there will be at least a couple of other regionals circling Mesa like hawks waiting to force a move on JO in court that could see a court sanctioned sell off of the companies profitable assests to the competition.

Anyrate, JO will soon be entering shark infested waters, time will tell if his skin is thick enough to bat off attacks...

I don't believe snakeskin is very thick!imp:

 

[barondriver]

Here comes SkyWest again...

 

[dispatchguy]

Dont tease me....

 

[Soverytired]

Well, I suppose it's more accurate to say the actual DATE of BK and shutdown comes as a surprise to most.

But you're certainly right that all signs point to your gloomy scenario. When "key people" start bailing, WATCH OUT!

And since ZK left, most of the training department (so I hear), they need a new VP of Ops . . well, you get the picture.