Hey Ornstein, time to give it up... Yes, UAL and USAirways, your two biggest partners, are now faced with yet ANOTHER LCC in their backyard. This can't be good for them or YOU. Of course you can't see that 99% of all ACA employees DO NOT want to work for you. Of course you have no intention on providing low-cost service to Washington DC residents - you want to preserve UAL's and USAirway's pricing position in the region - right?
Why don't you go play golf with your buddy Lorenzo instead...
Mesa Pledges to Continue Efforts to Acquire Company and Replace Board
Wednesday November 19, 3:21 pm ET
Says Atlantic Coast is Attempting to Thwart Stockholders' Best Interests To consider value in light of new aircraft obligations and effect on Delta relationship
PHOENIX--(BUSINESS WIRE)--Nov. 19, 2003-- Mesa Air Group, Inc. (Nasdaq: MESA - News) today denounced the recent large aircraft order by Atlantic Coast Holdings, Inc. (Nasdaq: ACAI - News) as an abrogation of the stockholders' right to decide the future direction of the company.
ACA's binding aircraft MOU and related leasing commitments were announced last night despite the letter Mesa sent to ACA's board of directors last week advising them that such a move could further destroy stockholder value and be regarded as a deliberate attempt to frustrate the best interests and rights of ACA stockholders.
This aircraft commitment represents well over one billion dollars, or over two and a half times the market capitalization of the company prior to Mesa's offer. While we understand management's motives to enter into a binding agreement, we believe a far more prudent course of action would have been to allow the stockholders to exercise their rights and pass judgment on management's plan to morph into a low cost airline.
Mesa also notes, as disclosed in ACA's recent 10Q, this decision may compel Delta Air Lines to cancel the contract that ACA currently enjoys with them and which represents approximately 15% of ACA's revenue. In light of these disappointing corporate actions by ACA, Mesa is moving forward expeditiously with its consent solicitation to replace ACA's board with a new board who have stockholders' interests as their number one priority. Mesa also intends to proceed with its exchange offer, subject to considering the impact of these developments on the value of ACA and consequently its offer.
Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa said: "As stockholders, we are extremely disappointed but frankly, not surprised at ACA's announcement. This latest action, is one of several taken recently, to entrench themselves and frustrate stockholders' rights, even including using stockholders money to commence litigation to prevent a stockholder vote. Stockholders should have the inherent right to decide the future of the company for themselves, but ACA's board and management have recently appeared to have ignored this obligation. We commit today both as a major stockholder ourselves, and as a bidder for this company, to ensure ACA's current board and management are compelled to uphold this basic principle.
"Stockholders should ask why ACA is doing everything in their power to prevent this vote, when the market seems clear in its view. In July, when ACA clarified its deal with United was in jeopardy and then announced its new strategy, its stock dropped 43%. We are proceeding with our consent solicitation and remain fully committed to acquiring ACA and rescuing its stockholders from the business strategy its management team has embarked upon. Mesa will do all we can to protect the value of this company."
About Mesa
Mesa currently operates 150 aircraft with 938 daily system departures to 163 cities, 40 states, the District of Columbia, Canada, Mexico and the Bahamas. It operates in the West and Midwest as America West Express; the Midwest and East as US Airways Express; in Denver and the West as United Express; in Denver as Frontier JetExpress until December 31, 2003; in Kansas City with Midwest Express and in New Mexico and Texas as Mesa Airlines. The Company, which was founded in New Mexico in 1982, has approximately 4,000 employees. Mesa is a member of the Regional Airline Association and Regional Aviation Partners. News releases and other information about Mesa can be found at the company's web site at http://www.mesa-air.com.
Why don't you go play golf with your buddy Lorenzo instead...
Mesa Pledges to Continue Efforts to Acquire Company and Replace Board
Wednesday November 19, 3:21 pm ET
Says Atlantic Coast is Attempting to Thwart Stockholders' Best Interests To consider value in light of new aircraft obligations and effect on Delta relationship
PHOENIX--(BUSINESS WIRE)--Nov. 19, 2003-- Mesa Air Group, Inc. (Nasdaq: MESA - News) today denounced the recent large aircraft order by Atlantic Coast Holdings, Inc. (Nasdaq: ACAI - News) as an abrogation of the stockholders' right to decide the future direction of the company.
ACA's binding aircraft MOU and related leasing commitments were announced last night despite the letter Mesa sent to ACA's board of directors last week advising them that such a move could further destroy stockholder value and be regarded as a deliberate attempt to frustrate the best interests and rights of ACA stockholders.
This aircraft commitment represents well over one billion dollars, or over two and a half times the market capitalization of the company prior to Mesa's offer. While we understand management's motives to enter into a binding agreement, we believe a far more prudent course of action would have been to allow the stockholders to exercise their rights and pass judgment on management's plan to morph into a low cost airline.
Mesa also notes, as disclosed in ACA's recent 10Q, this decision may compel Delta Air Lines to cancel the contract that ACA currently enjoys with them and which represents approximately 15% of ACA's revenue. In light of these disappointing corporate actions by ACA, Mesa is moving forward expeditiously with its consent solicitation to replace ACA's board with a new board who have stockholders' interests as their number one priority. Mesa also intends to proceed with its exchange offer, subject to considering the impact of these developments on the value of ACA and consequently its offer.
Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa said: "As stockholders, we are extremely disappointed but frankly, not surprised at ACA's announcement. This latest action, is one of several taken recently, to entrench themselves and frustrate stockholders' rights, even including using stockholders money to commence litigation to prevent a stockholder vote. Stockholders should have the inherent right to decide the future of the company for themselves, but ACA's board and management have recently appeared to have ignored this obligation. We commit today both as a major stockholder ourselves, and as a bidder for this company, to ensure ACA's current board and management are compelled to uphold this basic principle.
"Stockholders should ask why ACA is doing everything in their power to prevent this vote, when the market seems clear in its view. In July, when ACA clarified its deal with United was in jeopardy and then announced its new strategy, its stock dropped 43%. We are proceeding with our consent solicitation and remain fully committed to acquiring ACA and rescuing its stockholders from the business strategy its management team has embarked upon. Mesa will do all we can to protect the value of this company."
About Mesa
Mesa currently operates 150 aircraft with 938 daily system departures to 163 cities, 40 states, the District of Columbia, Canada, Mexico and the Bahamas. It operates in the West and Midwest as America West Express; the Midwest and East as US Airways Express; in Denver and the West as United Express; in Denver as Frontier JetExpress until December 31, 2003; in Kansas City with Midwest Express and in New Mexico and Texas as Mesa Airlines. The Company, which was founded in New Mexico in 1982, has approximately 4,000 employees. Mesa is a member of the Regional Airline Association and Regional Aviation Partners. News releases and other information about Mesa can be found at the company's web site at http://www.mesa-air.com.
