Trouble at Mesa??????

[storminpilot]

http://biz.yahoo.com/prnews/041001/laf038a_1.html

Press ReleaseSource: Mesa Air Group, Inc.


Announces Mesa Air Group Senior Management Salary Reduction
Friday October 1, 8:01 am ET

PHOENIX, Oct. 1 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA - News) announced today that its senior management will reduce their salaries by 23%, adjusted proportionately for its US Airways code share revenues and credit such savings to US Airways in support of its restructuring efforts. In addition, Mesa will ask its US Airways Express employees, on a voluntary basis, to agree to a deferral of up to 23% of their salaries. All deferrals will be credited to US Airways and repaid upon US Airways emergence from bankruptcy. In addition, at such time any employee who elects to participate will also receive a bonus equal to 20% of their deferral.




"We strongly support the efforts being made by US Airways to return to long-term profitability," said Jonathan Ornstein, Mesa Air Group's Chairman and Chief Executive Officer. "In addition, we very much appreciate the sacrifices being made by all US Airways' employees to help their company and we intend to stand shoulder to shoulder with them during this difficult period."



Mesa, with projected 2005 revenues in excess of $1 billion, currently operates 180 aircraft with over 1,000 daily system departures to 181 cities, 41 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 West and Midwest as United Express; in Kansas City with Midwest Airlines and in New Mexico and Texas as Mesa Airlines. The Company, which was founded in New Mexico in 1980, has approximately 4,400 employees. Mesa is a member of Regional Aviation Partners and the Regional Aviation Association.



This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or expected. The Company does not intend to update these forward-looking statements prior to its next filing with the Securities and Exchange Commission.

<LI>

For further information regarding this press release please contact Linda Larsen at 602-685-4126 or [email protected]

 

[J32driver]

If I were a MESA employee, I'd want to know what happens to the 23% I gave up when UAIR liquidates. Do I get it back? Do I get it back plus the additional 20%? OR.... Am I just now furloughed with 23% less money than I would have had if I'd kept my F reaking money in my F reaking pocket!!!!

 

[jetnut]

doesn't that mean you would have to pay $23.00 a hour to fly there

 

[BoilerUP]

I hear tons of east-coast Mesa pilots laughing right about now.

VOLUNTARILY give up 23% of their pay??? Yougottabekiddinme...

 

[FlyingDawg]

You mistakenly put this tread under regionals. I think you meant to put it under YGBSM treads.

 

[jobear]

I can see the eyes of the Mesa accountants now $.$ and the eyes of the Mesa pilots 0.0

Honestly J-LO can't pass up the chance to stick it to ya.
What would the pay be for a beech FO? $14 and change

Jobear

 

[lowecur]

Well now ain't that interesting.

Let's see what happens at Chautauqua. My guess is JO has been told by Lakefield that they are the first to go if the judge grants a reduction in the mainline fleet - "no need for the feed." The only way they would be given consideration would be if the rates could be reduced. Lots of luck.

However, Lakefield doesn't want to piss off Chautauqua because he may need their 170's at some point down the line.

 

[Beantown]

Ok, how about some facts in this discussion:



1. This has nothing to do with Mesa being in trouble. Mesa is trying to reduce it costs so that they can pass on the savings to US Airways. Remember that we have a cost plus contract with them. All cost savings go directly to U. With U being around 35% of Mesa revenue it would only make sense to try and do everything they can to help cut costs and save them cash while in B.K.



2. This is not new at Mesa. A similar deal was offered after 9/11. It is not offered to any of the unionized employees so the pilots and FA's are not allowed (not that we would want to) to participate. That said, those that played JO's game after 9/11 have made out handsomely. It's kinda like gambling. If you think U will make it out if B.K and you can afford the decrease in pay short term then you stand to make a nice chunk in the long run. If you think U has very little chance of making out of BK (me) then you can say thanks but no thanks. No big deal. -Bean

 

[Catbird]

Beanhead-"If you think U will make it out if B.K and you can afford the decrease in pay short term then you stand to make a nice chunk in the long run"

Why place your money with the SEC convicted stock trader Ornstein"? If you believe that U will escape chapter 7 invest the 23% you have kept in your pocket yourself. If anyone believes in Mr. Beanheads financial expertise I have a few Qcean view lots for sale in Oklahoma, one will cost you 10k or 24k for two.

 

[wscrj]

Reading comprehension...

Catbird, reread the post from Beantown again. He says, quite clearly, that he would not give up the pay.

JO tried this after 9/11. The Union made it clear that if JO wanted to reduce wages, he would have to do it through the Neg. Cmmte. This ticked JO off, and to one up the Union he has gone out of his way to make sure that the few employees that did take the cut have made the money back and then some. Of course, back when our contract stipulated a raise for 4 consequtive profitable quarters, we had 4 years of 3 profit/1 loss. This is the nature of the beast that runs Mesa.

What is troubling is the complete lack of a contingency plan in the (probable) event of a US BK. Wall Street has taken notice of the lack of a plan and has punished the stock,

 

[Fallingbrick]

"What is troubling is the complete lack of a contingency plan in the (probable) event of a US BK."

Exactly!

 

[Beantown]

Beanhead-"If you think U will make it out if B.K and you can afford the decrease in pay short term then you stand to make a nice chunk in the long run"

Why place your money with the SEC convicted stock trader Ornstein"? If you believe that U will escape chapter 7 invest the 23% you have kept in your pocket yourself. If anyone believes in Mr. Beanheads financial expertise I have a few Qcean view lots for sale in Oklahoma, one will cost you 10k or 24k for two.

Catbird, Why such anger? I just explained the facts as they are. I'm sorry if you don't like them and you feel that you need to go off and make a personal attack on me. What ever makes you happy.

The fact is who ever CHOOSES to get involved in this has a chance to make 20% profit if U makes it. That is a fact. This isn't being stuffed down anyone's throat (maybe upper Managements but who cares). As I said above, If I had the choice and I don't, I would keep the money.

If you have any further problems with me feel free to PM me and we can deal with them face to face. See ya. Bean