Mesa 700 furloughs?

Oh this is more than rumor. My contacts still at MAG at the "Crystal Palace" are singing the same song. UA has pretty much told MAG that they are opting not to renew MAG's 26 CRJ2 and 10 Dash 8 aircraft.
 
Perhaps, while ominous for many pilots and I certainly don't like seeing people on the street... perhaps the seat capacity reduction in the industry will shake loose some of the worst companies, or get them to shape up.

Seems like value for your money, not just the cheapest feed, is the direction a few companies are going.

Maybe this will all be part of some sort of 'perfect storm' series of industry changes with carriers competing to provide the best quality feed, and not just the cheapest.
 
I don't think Paul Foley would drive all the way from the crystal palace to the training center for any reason, much less to talk to a class of recurrent pilots -- so I dont hold a lot of stock in this rumor. May very well be true though. Would definitely mean BK.
 
Firebird2XC said:
Seems like value for your money, not just the cheapest feed, is the direction a few companies are going.

Maybe this will all be part of some sort of 'perfect storm' series of industry changes with carriers competing to provide the best quality feed, and not just the cheapest.
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Just like the good 'ole days!

RD
 
Also, I'd like to point out. . .

Late summer of 08 through the fall a certain few of us were explaining that some furloughs were coming to ASA. Yet, it was cast aside as unsubstantiated rumor by some of our very own members. . .why. . .because they perhaps felt their own head would be on the chopping block - no furlough clause or not. And that they'd rather "Deal with it when it happens." Of course they did, no one likes to plan for the unfortunate future.

Now I find it somewhat comical that someone seems to be putting a certain amount of certainty into the rumor of another company's (a competitor indeed) potential for having to furlough a great deal of pilots.

Just a friendly observation. ;)
 
I think the only way it could happen is if Mesa declared BK, then UA could withdraw from CPA. It makes sense in the sense that Mesa hasn't been able to obtain financing for new 700s, which UA wants.
 
Firebird2XC said:
Perhaps, while ominous for many pilots and I certainly don't like seeing people on the street... perhaps the seat capacity reduction in the industry will shake loose some of the worst companies, or get them to shape up.

Seems like value for your money, not just the cheapest feed, is the direction a few companies are going.

Maybe this will all be part of some sort of 'perfect storm' series of industry changes with carriers competing to provide the best quality feed, and not just the cheapest.
Click to expand...
I have to hope that you're right.

Sorry to anyone who might lose their job. But if my loss and their loss leads to better jobs to go back to, at least there has been a silver lining to the story.
 
From Mesa's last 10Q filed in May.

Also, under our United agreement, 26 CRJ-200s and 10 Dash-8s can be terminated early by United in April 2010, upon six months prior notice. We have not received notice from United regarding its intentions with respect to its CRJ-200 and Dash-8 fleet. The 26 CRJ-200 and 10 Dash-8 aircraft represent approximately 19% of the Company's revenues. Although we have early return rights for 8 CRJ-200 aircraft flying for United, we have substantial aircraft lease obligations beyond April 2010 on the remaining fleet. If United ecercises its early termination option for the CRJ-200 and/or Dash-8 aircraft, we would be unlikely to place these aircraft in revenue-generating service in a timely manner or sublease these aircraft at the lease reimbursement rates in the United code-share agreement. In the absence of obtaining additional capital through equity or debt financings, asset sales, consensual restructuring the aircraft lease terms and/or similar measures, continuing our agreement with United, or placing the aircraft with another carrier, our cash flows from operations and available working capital will be insufficient to meet our obligations.
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SpiraMirabilis said:
I think the only way it could happen is if Mesa declared BK, then UA could withdraw from CPA. It makes sense in the sense that Mesa hasn't been able to obtain financing for new 700s, which UA wants.
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Colgan will operate Q400's for them- and the race to the bottom continues. Mark my word.
 
SmitteyB said:
Colgan will operate Q400's for them- and the race to the bottom continues. Mark my word.
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Not if the pay and work rules in the upcoming CBA are representative of the equipment and Colgan's position to exploit this new market that's opening up.

:beer:
 
I doesn't matter what Paul Foley said or OJ for that matter. UA will opt out of the 26 50 seaters and that is a fact. AA,CAL,Delta,UA are all trying to get rid of unnecessary 50 seat flying. They've been waiting for the date on the contract to opt out for about a year and a half. Sooner or later mesa will lose at least 26 airplanes. Don't know about the dash 8s as they're probably dirt cheap to operate. 700 more pilots on the street only worsens things.
 
Keep in mind that *if* they go into BK, several other CPA are eligible for termination. The US -west flying (and maybe the CLT -900s I don't know) are subject to MAG not being in BK. We could see a ripple effect throughout their contracts.

Not a pretty thing for sure.
 
SmitteyB said:
Colgan will operate Q400's for them- and the race to the bottom continues. Mark my word.
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I could see it. Might also explain why the company is so hard up for the union to agree to all pilots being cross trained on the 200 and the 900 all of a sudden. Sucks for the Mesa guys. Of course, if it happens, United might just let the flying go altogether to reduce capacity. All I know is, if management wants everyone dual qualed over here, they're gonna have to give up a LOT to get it.
 
kellwolf said:
I could see it. Might also explain why the company is so hard up for the union to agree to all pilots being cross trained on the 200 and the 900 all of a sudden. Sucks for the Mesa guys. Of course, if it happens, United might just let the flying go altogether to reduce capacity. All I know is, if management wants everyone dual qualed over here, they're gonna have to give up a LOT to get it.
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What's the word on compensation if that were to happen.

But, most importantly, let's hope not.
 
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