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CoATP

Well-known member
Joined
Oct 25, 2005
Posts
476
Heard United has issued an RFP for flying. Deets? Who could be out and where?

p.s. Let me be the first: Mesa Sucks
 
I've got a buddy at Mesa (heaven help him) who says they spent the engine overhaul allowance that United was giving them on other things. He says there are several RJ engines due for overhaul in the near future but the money is gone. This might be it.
 
Anyone know how many/type of planes they're looking for?
 
I can tell you this with certainty. 27 Mesa CRJ’s 200 are currently in renegotiation. Mesa sent Paul Foley out to IAD to try to improve our on time performance in IAD. We (Mesa) compete with Trans States for dead last every day for D+0. Mesa unlike in the past is currently making genuine efforts to improve on D+0. Now with that being said our 700 D+0 rate is as good as or better than any carrier out of IAD. We operate the 2nd highest % of 50 seat jets out of IAD. Us and Trans States competing for last on D+0 every day. Think about it!

Our contract is up some time next year. United has to give us 6 months notice of their intentions. The date is either October 2nd or 3rd. Whatever 6 months after that is could be the date that many of you here have salivated over for years. Of course Paul Foley is saying it will be to restructure not liquidate. (His expertise is as a BK attorney.) Currently we have 12 ERJ’s and 10 CRJ’s parked and collecting dust. $100,000 a month each. Chopping those off of the books in BK is a huge part of the plan. Now that being said, Paul Foley told me personally that J.O. has said he thinks that we have never been in better shape. We have more leverage than ever. In the current economic environment if we send those planes to the desert the holdings company gets jack squat. If they renegotiate the leases on our jets for say $65,000 a month then United may actually want more of them not less. You have to admit regardless of what you think of J.O. as a CEO that the current economic environment is where he shines. The last time this happened he grew Mesa to the largest U.S regional.

According to Paul Foley United is not terribly unhappy with Mesa. Our controllable completion is 100% or near it every day. They want us on time and we do to because each delay cost us money (around $500). All carriers get bonuses based on D+0. Some of the flying that we do such as ORD to Lansing Michigan is very profitable for United. It is a short flight but a long drive. United probably doesn’t want to get rid of all of the 50 seat jet flying but they probably do want to replace some of it with 700’s and cut some of it off and replace it with turbo props.

I have heard rumors regarding the situation at Mesa. Everything from Republic will shut down Frontier in DEN in exchange for all United Express flying to United has already dumped Republic because they now own Frontier and J.O. has already traveled to South America to ink the E170 financing deal to be Republics total replacement.

The truth ultimately probably lies somewhere in between with United renewing the contract with modifications, Mesa declaring BK and restructuring by canceling leases on the jets that we don’t need any more.

For those of you “I hope Mesa liquidates” chest thumpers: Consider the fact that the people who are willing to spend their careers at Mesa will be jobless it that happens. Do you really want 1000 Pilots with 121 experience in the free market right now that are willing to work for a substandard carrier when the airlines start to hire again? Trust me you don’t want Mesa to liquidate right now!
 
I can tell you this with certainty. 27 Mesa CRJ’s 200 are currently in renegotiation. Mesa sent Paul Foley out to IAD to try to improve our on time performance in IAD. We (Mesa) compete with Trans States for dead last every day for D+0. Mesa unlike in the past is currently making genuine efforts to improve on D+0. Now with that being said our 700 D+0 rate is as good as or better than any carrier out of IAD. We operate the 2nd highest % of 50 seat jets out of IAD. Us and Trans States competing for last on D+0 every day. Think about it!

Our contract is up some time next year. United has to give us 6 months notice of their intentions. The date is either October 2nd or 3rd. Whatever 6 months after that is could be the date that many of you here have salivated over for years. Of course Paul Foley is saying it will be to restructure not liquidate. (His expertise is as a BK attorney.) Currently we have 12 ERJ’s and 10 CRJ’s parked and collecting dust. $100,000 a month each. Chopping those off of the books in BK is a huge part of the plan. Now that being said, Paul Foley told me personally that J.O. has said he thinks that we have never been in better shape. We have more leverage than ever. In the current economic environment if we send those planes to the desert the holdings company gets jack squat. If they renegotiate the leases on our jets for say $65,000 a month then United may actually want more of them not less. You have to admit regardless of what you think of J.O. as a CEO that the current economic environment is where he shines. The last time this happened he grew Mesa to the largest U.S regional.

According to Paul Foley United is not terribly unhappy with Mesa. Our controllable completion is 100% or near it every day. They want us on time and we do to because each delay cost us money (around $500). All carriers get bonuses based on D+0. Some of the flying that we do such as ORD to Lansing Michigan is very profitable for United. It is a short flight but a long drive. United probably doesn’t want to get rid of all of the 50 seat jet flying but they probably do want to replace some of it with 700’s and cut some of it off and replace it with turbo props.

I have heard rumors regarding the situation at Mesa. Everything from Republic will shut down Frontier in DEN in exchange for all United Express flying to United has already dumped Republic because they now own Frontier and J.O. has already traveled to South America to ink the E170 financing deal to be Republics total replacement.

The truth ultimately probably lies somewhere in between with United renewing the contract with modifications, Mesa declaring BK and restructuring by canceling leases on the jets that we don’t need any more.

For those of you “I hope Mesa liquidates” chest thumpers: Consider the fact that the people who are willing to spend their careers at Mesa will be jobless it that happens. Do you really want 1000 Pilots with 121 experience in the free market right now that are willing to work for a substandard carrier when the airlines start to hire again? Trust me you don’t want Mesa to liquidate right now!

PF say anything about more furloughs in BK?
 
Also don't a lot of mainline carries have something in their contract to be able to dump the regional contract if they go Ch 11? I've heard that Delta does.
 
I can tell you this with certainty. 27 Mesa CRJ’s 200 are currently in renegotiation. Mesa sent Paul Foley out to IAD to try to improve our on time performance in IAD. We (Mesa) compete with Trans States for dead last every day for D+0. Mesa unlike in the past is currently making genuine efforts to improve on D+0. Now with that being said our 700 D+0 rate is as good as or better than any carrier out of IAD. We operate the 2nd highest % of 50 seat jets out of IAD. Us and Trans States competing for last on D+0 every day. Think about it!

Our contract is up some time next year. United has to give us 6 months notice of their intentions. The date is either October 2nd or 3rd. Whatever 6 months after that is could be the date that many of you here have salivated over for years. Of course Paul Foley is saying it will be to restructure not liquidate. (His expertise is as a BK attorney.) Currently we have 12 ERJ’s and 10 CRJ’s parked and collecting dust. $100,000 a month each. Chopping those off of the books in BK is a huge part of the plan. Now that being said, Paul Foley told me personally that J.O. has said he thinks that we have never been in better shape. We have more leverage than ever. In the current economic environment if we send those planes to the desert the holdings company gets jack squat. If they renegotiate the leases on our jets for say $65,000 a month then United may actually want more of them not less. You have to admit regardless of what you think of J.O. as a CEO that the current economic environment is where he shines. The last time this happened he grew Mesa to the largest U.S regional.

According to Paul Foley United is not terribly unhappy with Mesa. Our controllable completion is 100% or near it every day. They want us on time and we do to because each delay cost us money (around $500). All carriers get bonuses based on D+0. Some of the flying that we do such as ORD to Lansing Michigan is very profitable for United. It is a short flight but a long drive. United probably doesn’t want to get rid of all of the 50 seat jet flying but they probably do want to replace some of it with 700’s and cut some of it off and replace it with turbo props.

I have heard rumors regarding the situation at Mesa. Everything from Republic will shut down Frontier in DEN in exchange for all United Express flying to United has already dumped Republic because they now own Frontier and J.O. has already traveled to South America to ink the E170 financing deal to be Republics total replacement.

The truth ultimately probably lies somewhere in between with United renewing the contract with modifications, Mesa declaring BK and restructuring by canceling leases on the jets that we don’t need any more.

For those of you “I hope Mesa liquidates” chest thumpers: Consider the fact that the people who are willing to spend their careers at Mesa will be jobless it that happens. Do you really want 1000 Pilots with 121 experience in the free market right now that are willing to work for a substandard carrier when the airlines start to hire again? Trust me you don’t want Mesa to liquidate right now!

The fact is that United very well might want more 70 seaters and less 50 seaters. If Mesa is truely in dire straights before a "restructuring", then the banks will surely know that, and they will not offer financing on any aircraft to expand the fleet. While JO has excelled in the past in these thin times, they have never delt with a credit enviornment like this one. Banks want collateral for purchases, and Mesa doesn't have any. Not trying to piss on your parade, but it is what it is. I can see Mesa restructuring, but they have no cash and little incentive for DIP financing. If anything, I can see Mesa getting purchased right after they rejected the leases on your above aircraft, but I don't know. A filing puts your bread and butter flying, US Airways, up in the air, and without that Mesa might not be viable.
 
The fact is that United very well might want more 70 seaters and less 50 seaters. If Mesa is truely in dire straights before a "restructuring", then the banks will surely know that, and they will not offer financing on any aircraft to expand the fleet. While JO has excelled in the past in these thin times, they have never delt with a credit enviornment like this one. Banks want collateral for purchases, and Mesa doesn't have any. Not trying to piss on your parade, but it is what it is. I can see Mesa restructuring, but they have no cash and little incentive for DIP financing. If anything, I can see Mesa getting purchased right after they rejected the leases on your above aircraft, but I don't know. A filing puts your bread and butter flying, US Airways, up in the air, and without that Mesa might not be viable.

All great points. Delta will dump Mesa the second they file BK. Mesa has already stated this would put them in Ch. 11 situation overnight. Along with that is that every Mainline Partner Mesa has will want to either, terminate, or renogotiate rates. If Mesa can cheap themselves out again because of lesser lease rates, perhaps they can keep a Mainline partner or 2....But I doubt it. I may be wrong, but as far as I know, NO airline has ever shrunk to profitability.

Trojan
 

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