Mesa faces trouble after United ends flying pact; 50-seat RJs now a liability?
Comments 8 |
Recommend 3 11/9/2009 4:13:27 PM from
USA TODAY
Trouble could be looming for regional carrier Mesa Air Group following news that its contract to fly for United has been has not been renewed.
The Associated Press writes Mesa "said Friday that United Airlines did not extend an agreement under which Mesa operated 26 regional jets for the larger carrier. Mesa operates the CRJ-200 aircraft under a code-sharing agreement with United. Mesa said the deadline for extending the deal had passed, and it expects to exit from the service by the end of April 2010. According to Mesa's website, it currently operates 58 regional jets and 10 turboprop planes for United under the United Express brand."
Cranky Flier author Brett Snyder has perhaps
the most comprehensive post on the story, writing that United's move reflects that the market now has a glut of 50-seat regional jets operating for U.S. airlines, which had been acquiring them at a breakneck pace over the past 15 years. Now, Snyder writes, "it's just that there are too many of them out there, so they end up flying in really dumb markets where they don’t make any money. That's why airlines are racing to get rid of them as fast as they can." (
See the full Cranky Flier post for more details.)
As for Mesa,
AviationWeek notes besides United, Delta is also trying to scrap its regional contract with the company, though that effort is currently tied up in the court system.
AviationWeekwrites that it has "also has discovered that Mesa, in a note to employees detailing the loss of the two United contracts, said it had stopped ground training while it evaluates its fleet plan and staffing requirements."
The Cranky Flier notes
a second-quarter statement from Mesa in which the company warned the possible termination of the United leases constituted a severe risk. Snyder puts the language of the filing in layman's terms, writing that he thinks Mesa is saying it will be in trouble if it can’t find a new contract to operate the plans or if it cannot renegotiate other leases or raise more cash. "Things are not looking rosy for Mesa at all," Snyder concludes.
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Well maybe if Mesa was cheaper they could keep this flying. I am sure the employees could take a pay cut to keep their jobs. Mesa employees have had to do it before I am sure they could do it again.
