Mesa Vs. Delta

[Jet_Dreamer]

Hopefully it means JO will be dragged onto a public square and beaten senseless with a tow bar. The airline liquidated and every pilot branded with an "M" on their forehead if Mesa, a "F" if freedom and "G" if GoJet.

Your hate is very distrurbing, don't come asking to ride on my jumpseat!

 

[AftCG182]

Your hate is very distrurbing, don't come asking to ride on my jumpseat!

Originally I was going to post in defense of my co-worker. He's a good guy who's intelligent, opinionated, and a bit on the animated/passionate side.

Instead, I'd like to post my heartfelt sympathy to those affected by the news in the following post. Regardless of who's to blame, good luck to everyone affected.

It's aviation guys, you'll work through this...

 

[A-V-8]

Hopefully it means JO will be dragged onto a public square and beaten senseless with a tow bar.

It is with extreme disappointment and a heavy heart that I share the following news with you. Earlier today we received notice that Judge Cooper in Atlanta had effectively reversed his earlier decision and ruled against us in the Delta litigation. Needless to say we are all very surprised that the judge determined Delta had the right to terminate our agreement solely on the basis that, in good faith and as good partners, we cancelled our flights at their request to make way for their flights during periods of irregular ops. We, the company and our people, are effectively being “punished” retroactively because we did what they asked us to do. I can tell you without equivocation that I was told directly by their Chief Operating Officer that cancellations we took at their request would not be held against us. This individual testified he said that as well. I am truly at a loss as to how this outcome is the intent of the law. Below you will find a press release that will be issued shortly.

We are in the process of evaluating our options and have not determined how this decision will impact the company. We will keep you fully informed as more information becomes available. In the mean time, we can only focus on those areas within our control by continuing to run a safe, on time airline in the service of our code share partners. I would like to thank each of you, and in particular our people at Freedom for your outstanding work through the very difficult environment we have experienced over the last two years. In spite of what we believe to be an incorrect decision by the Court, I remain as confident as ever that your professionalism and dedication will provide a strong foundation for the future and will serve as the basis for our return to success.As always feel free to contact me if you have any questions.

Most sincerely,

Jonathan

Mesa Air Group, Inc. Comments on Recent Court Proceedings
PHOENIX, May 17, 2010 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA) announced today that the United States District Court for the Northern District of Georgia ruled against the Company’s subsidiary Freedom Airlines in its efforts to prevent Delta Air Lines from terminating its agreement covering 22 regional jet aircraft. The litigation stemmed from Delta’s termination of the Freedom Airlines agreement based upon flights canceled at Delta’s request, during periods of operational irregularity (bad weather and ATC delays) at JFK in order to make way for Delta’s larger jets, which were then retroactively held against Freedom for purposes of calculating its minimum flight completion factor. Based upon this retroactive calculation, the Court had issued a preliminary injunction in June 2008 prohibiting Delta from terminating the agreement. In reaching its decision today, the Court reversed its prior preliminary injunction preventing Delta from terminating the agreement. The Company is in the process of reviewing the Order and evaluating options going forward. Mesa has not yet reviewed its options for appeal.
"We are extremely disappointed by the District Court’s decision. We have at all times sought to act as a good partner and work with Delta as a member of Delta Connection. Unfortunately Freedom’s willingness to proactively cancel flights in JFK at Delta’s request for the benefit of Delta was held against Freedom and was used as the sole basis to terminate our contract. It is disheartening that our Company and people will be punished retroactively for tacking actions in good faith at Delta’s direction,” said Jonathan Ornstein, Chairman and Chief Executive of Mesa Air Group.

"We are greatly concerned for our approximately 500 employees who will be significantly impacted as a result of this decision, despite their hard work and commitment which has placed Freedom’s operation at or near the top of the Delta Connection portfolio over the last year. The loss of these jobs, particularly under these circumstances is extremely disappointing. I would like to thank all of the employees at Freedom for the outstanding job they have done over the last two years under extremely difficult circumstances," continued Mr. Ornstein.


Sorry for not posting what you want to read but I don't think J.O. deserves the bad rap for this one.

The airline liquidated and every pilot branded with an "M" on their forehead if Mesa, a "F" if freedom and "G" if GoJet.

You may want to consider seeing a mental health professional regarding your rage. I am not certain but I think you could actually be charged with verbal assault for this. You cannot advocate violence against another person. Regardless of whether it is or is not legal it is uncalled for.

 

[Fltlvls]

Furloughs and more airframes to get rid of during bankruptcy. They will probably continue to operate unfortunately

True regarding furloughs and parking ERJs..The other unfortunate part will be for the other regionals when Mesa exits bankruptcy with negotiated lease rates that are half of what everyone else is paying and they can undercut the crap out of anyone when it comes to renewing their remaining contracts unless someone comes in with very deep pockets to pony up. Just guessing

 

[glasspilot]

Okay, maybe not the branded foreheads, after all we are all naive when applying to a regional.

But JO tried a hostile takeover of MY airline! For that I think I get a little discretion. Plus, Mesa charges $50 just to interview. Plus they run Freedom to whipsaw Mesa. Plus plus plus.

Again, I do step back from the branded foreheads. Not the tow bar, just the foreheads.

(thanks aftcg)

 

[asayankee]

True regarding furloughs and parking ERJs..The other unfortunate part will be for the other regionals when Mesa exits bankruptcy with negotiated lease rates that are half of what everyone else is paying and they can undercut the crap out of anyone when it comes to renewing their remaining contracts unless someone comes in with very deep pockets to pony up. Just guessing

Or perhaps....the creditors could decide that they could get more money through liquidation and thus force Mesa out of business

Or...one of the regionals with lots of cash could make an offer to the creditors saying "we'll give you $XXX on the dollar for the assets"

Remember...it's not JO, it's not the board of directors, it's not the judge, it's not even the shareholders, it's the creditors who drive the bankruptcy process. For the most part whatever makes them the most "whole" is what is important.

 

[A-V-8]

Plus they run Freedom to whipsaw Mesa.

No. They started it (Freedom) for that reason. That flying was bought and seniority was integrated with the worst contract in the industry. Note in my original post that I am not standing up for everything they have done. I just don’t think you can throw this one in J.O.s face. That's all

I was in transition to Freedom until 1545 PHX time today. I am and have been a dues paying member since day 1.

Note that the situation that exists at Tran States does not exist at Mesa.

 

[DoinTime]

True regarding furloughs and parking ERJs..The other unfortunate part will be for the other regionals when Mesa exits bankruptcy with negotiated lease rates that are half of what everyone else is paying and they can undercut the crap out of anyone when it comes to renewing their remaining contracts unless someone comes in with very deep pockets to pony up. Just guessing

Its not looking like there will be any contracts left to renew here pretty soon. If Mesa sheds most of their leases throughout the rest of this bankruptcy they won't emerge any more competitive than they were going in. None of their current service partners seem at all interested in doing business with them and unfortunately, thats most of the industry.

 

[ultrarunner]

Or perhaps....the creditors could decide that they could get more money through liquidation and thus force Mesa out of business....


...it's the creditors who drive the bankruptcy process. For the most part whatever makes them the most "whole" is what is important.

As it should be. Since they put up the money in the beginning!

But too many folks loose sight of that fact. They think it's ALL about the employee....

Too many folks doing the grunt work are in the dark about who made that job happen in the first place....

And in the end when management hasn't done it's job, the creditors come a calling! As they should!

 

[Fltlvls]

Or perhaps....the creditors could decide that they could get more money through liquidation and thus force Mesa out of business

Or...one of the regionals with lots of cash could make an offer to the creditors saying "we'll give you $XXX on the dollar for the assets"

Remember...it's not JO, it's not the board of directors, it's not the judge, it's not even the shareholders, it's the creditors who drive the bankruptcy process. For the most part whatever makes them the most "whole" is what is important.

Not likely.