A pretty good summary of JO's latest conference call on the subject (from mesalounge.com):
Here's the skinny:
Conference opened with some cheezy music that was reminicent of a 1970 porno-flick . . . not that I have any idea what that sounds like!
DELTA FLYING:
Mesa will be operating up to 30 50-seat jet for 12 years. However, MESA WILL BE PAYING FOR SOME OR ALL OF THE LEASE COSTS FOR THE DELTA DONIER-328'S. This cost has been "priced-in" to the costs, so Mesa will still make a profit, and may turn out to be a benifit if Mesa can sub-lease these planes either to US vendors or to China operators.
JO repeatedly stated that these assumed lease costs will disappear IF Delta declares bankruptcy. Assume what you will about why he felt this point needed to be repeated at least 3 times. . .
CRJ or ERJ to Delta? Well, first he said CRJ (buzz,buzz, buzz for 5 sec), then EMPATICALLY said that "The ERJ will go to Delta, the CRJ will go to United". (followed by 30 sec pause, and you get the impression that his boys are jumping up to tell him to shut up) Followed by, well, that hasn't been decided yet, but the agreements with United and Delta provide for either aircraft to go to either airline.
Aircraft to start going online in Delta this fall or early next year.
UNITED:
Dash-8's were given a 2 year extension on the United contract, so that flying is safe for at least 2 years.
30 50-seaters to fly with United on a 5 year contract. This will NOT require affirmation by the bankruptcy judge, as this is considered "normal course of business" for Mesa's already re-affirmed contract with United.
Terms with United for this flying are at better rates (for United) than exisiting business. I.E., Mesa is taking a haircut.
AMERICA WEST:
Current business will not be affected by a merger between U and AmWest. Mesa currently will fly 38 CRJ 900's for Cactus. Scope would allow Mesa to fly up to 55 900's, but either 1.) Mesa dosen't want to have additional exposure to Cactus or 2.) America West dosen't want additional 900's (take your pick which). Sounded like Mesa is trying to fly additional 900's for America West, but the merger is putting a cramp on it.
As an aside, our Cost per seat mile on the 900 is less than America West's current narrow bodies.
MISC stuff:
It's gonna cost between 8-10 million bucks to re-train pilots and re-paint all the Delta and United aircraft.
1900's at U are mostly EAS, and would likely do business with a merged U-AmWest airline.
Assumption is the Mesa will lose ALL CRJ/ERJ flying for USAir. However, if Mesa gets 30/30 for Delta/United, Mesa will have a net increase of ONE CRJ 50 seater.
And the password for the conference is still FREEDOM. Links to the website to listen to this VERY interesting conference is on the official company website.
(apologies for the length of this post -- do your own homework next time!)
