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Wow! Never saw this coming....

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Well-known member
Nov 17, 2002
Mesa Air Files for Bankruptcy

By Ted Reed 01/05/10 - 11:08 AM EST
Stock quotes in this article: MESA , LCC , DAL , UAUA

PHOENIX (TheStreet) -- Mesa Air(MESA Quote) finally succumbed to bankruptcy on Tuesday, after trading as a bankruptcy candidate for the past 20 months.

In April 2008, shares traded as high as $2.51, before falling to 44 cents. They have not traded above $1 since then. Since September, they have not traded above 30 cents a share. CEO Jonathan Ornstein said the company eliminated more than $160 million in debt during the past two years through negotiations with lessors, creditors and others, but it was not enough.
"We are nonetheless faced with an untenable financial situation resulting primarily from our continued lease obligations on aircraft excess to our current requirements," Ornstein said, in a prepared statement.
The Chapter 11 filing in bankruptcy court in New York will enable Mesa to eliminate excess aircraft, realign its business to the marketplace and " will give us the opportunity to reach a more timely conclusion in the litigation with Delta Air Lines in which Mesa is currently seeking damages in excess of $70 million," he said.
Mesa said it will continue to operate normally, operating regional aircraft for US Airways(LCC Quote); Delta(DAL Quote) and United(UAUA Quote). Additionally, Mesa's go!-Mokulele joint venture, an independent Hawaiian inter-island operation, is not included in the filing and will continue to operate its full flight schedule.
Mesa has about 3,500 employees and operates 130 aircraft with approximately 700 daily departures to 127 cities in 41 states, Canada and Mexico.
Wishing that was liquidation...
Never saw it coming?

With a fleet size of 130, Mesa has about 52 planes parked and not being used, and it plans to retire 25 more aircraft that are not needed to service its customers, the company said in court papers.

I think the writing was on the wall.
more proof having the LOWEST paid pilots with some of the worst working conditions does not help the bottom line.....fancy that! wonder if the EMPLOYEE moral plays any roll in this???? Hmmmm......
This is the perfect example of making a pizza so cheap nobody will eat it. The pilots will be better off if they go Ch. 7 and someone else starts over. Mesa truly sucks.

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