Mesa Air Group Files for Chapter 11 Bankruptcy

[meyers9163]

That's how I see it, too. At least on the DAL side of things. It's no secret that Daddy Delta is trying to reduce their 50 seat lift. This is pretty much a silver platter for that. What we'll likely see happen if Delta opts to exercise their contractual options is CMR picking up some lift out of CVG and some shuffling elsewhere. Honestly, if anyone sees a bump in flying, it's likely to be Comair. I know Pinnacle can barely handle what we have now with the staffing we've got. If Delta said "You're getting another 3000 block hours" we'd be HOSED from a staffing perspective.

DING DING DING. I see the flying that they are doing being eliminated in general with no one gaining... Just a net loss of pilot jobs. Delta is trying to get rid of flying and reduce seats, UAL and USairways the same. Plus the scopes issue with USairways and the number of Large RJ's this is a perfect way to get rid of some and not have to worry about the arbitration in which USairways will LOSE.

 

[NJA_Capt]

I think it’s sad how everyone is waiting for Mesa’s death so that maybe their regional airline can pick up some flying.

Yea, and Mesa employees were sad for all the employees they put out of work. As a former employee of one of the carriers that Mesa put out of business...buh bye.

But I'm not biased....I don't want any regional to pick up flying. I'd rather the mainlines pick up themselves.

 

[JDMcFly]

This is a long long long time coming.

Surprised this did not happen sooner.

 

[WacoFan]

Weird vibe over this. I imagine everyone is happy to see JO go down the tubes and hope that it is painful for him. So...happy for that. On the other hand, I am almost equally sure that nobody is overjoyed with that many pilots being on the street or the personal pain it will cause the affected employees. So, perhaps the very definition of bittersweet.

 

[meyers9163]

But I'm not biased....I don't want any regional to pick up flying. I'd rather the mainlines pick up themselves.

Well said! I'd love to see USairways keep the E190 and put them out West and recall all their pilots.... DAL/UAL to follow suit and keep the flying in house.... If nothing else keep it in house and put it on with a wholly own such as Mesaba, Comair, Compass..... Stop paying someone else to do the flying you can do cheaper in house....

 

[meyers9163]

Weird vibe over this. I imagine everyone is happy to see JO go down the tubes and hope that it is painful for him. So...happy for that. On the other hand, I am almost equally sure that nobody is overjoyed with that many pilots being on the street or the personal pain it will cause the affected employees. So, perhaps the very definition of bittersweet.

I think that's exactly the point.... People dont care what happens to another over paid CEO. But the people whom go down with the company I think we all care about, espepcially due to the shared careers/jobs...

 

[kellwolf]

I see a possible sale of 50 seat equipment to carriers looking to move up from existing less-than-50 seat airplanes.

ie, Eagle, Mesaba, Skywest, etc.

And by "Mesaba" you mean Delta. Honestly, I don't see Delta buying jack from Mesa unless it's to turn around and sell it for a profit. They've made no secrets that they want "large RJs" more than small RJs. They've underlined that by parking Saabs in alarming numbers. I just don't see them buying 135s, 145s or more -200s to replace the Saab when they can just as easily cut 50 seat flying and put an existing 50 seater on the Saab route, which is what they've been doing for months in MEM. Former 9E routes are now flown by -900s or 175s and they're moving Saab routes over to us.

I see companies like ASA/Skywest, Pinnacle, and ExpressJet in a bidding war over new flying that Mesa previously did. That includes USAir, United, and Delta. I see Republic moving in and beating whatever offer the previous carriers mentioned make by stepping on the necks of its employees- again. Skywest, probably, too, when I think about it. (Haven't they lost enough lately?)

I see Pinnacle trying the "give us this in a contract or we won't win the RFP" trick.....again. Management is still smarting from losing United to XJT.

 

[Trip7]

Well said! I'd love to see USairways keep the E190 and put them out West and recall all their pilots.... DAL/UAL to follow suit and keep the flying in house.... If nothing else keep it in house and put it on with a wholly own such as Mesaba, Comair, Compass..... Stop paying someone else to do the flying you can do cheaper in house....

That makes everybody feel warm and fuzzy inside, but realistically that's not going to happen. The majors involved will shed the 50 seat flying as much as possible but keep the 700/900 flying.

 

[Firebird2XC]

Weird vibe over this. I imagine everyone is happy to see JO go down the tubes and hope that it is painful for him. So...happy for that. On the other hand, I am almost equally sure that nobody is overjoyed with that many pilots being on the street or the personal pain it will cause the affected employees. So, perhaps the very definition of bittersweet.

Aye, bittersweet.

Perhaps there's a lesson for us pilot types as well.

Maybe chasing rapid upgrades and sacrificing all else in search of turbine PIC time isn't so wise, after all.

 

[kellwolf]

Aye, bittersweet.

Perhaps there's a lesson for us pilot types as well.

Maybe chasing rapid upgrades and sacrificing all else in search of turbine PIC time isn't so wise, after all.

Nevermind the fact TPIC isn't worth much more than the paper (or electrons) it's printed on in the current environment. I topped 1000 TPIC the other day. When I blocked in, I wasn't met with confetti cannons or a brass band. I turned my phone on.....no phone calls from majors begging me to interview. I was so disappointed I had to go cry in the corner in the crew room.

 

[CamYZ125]

I guess I'm not convinced that this will be the end of Mesa, like many of you are implying.

And before I say why, let me say that it doesn't really affect me whether they stay or go. I'll still be out of a job either way.

I think Mesa will probably survive, although at a much smaller capacity than the company is now, or has been in recent years. Everyone is saying, 'but WHERE will they get financing?!?', but who says they NEED financing? Historically, Mesa has been a fairly profitable company. It really wasn't until they started throwing money at lost lawsuits and the independent operation in Hawaii that they really started to lose money.

The reason for the bankruptcy? They can't afford to pay the leases on so many parked airplanes that aren't providing revenue for them anymore. Solution, file bankruptcy and cut the leases. Now they're able to continue with the current, reduced, amount of flying and the costs that are associated. Who says they even NEED financing to continue operations?

Now I'm no economist, I don't have a degree in business, I know next to nothing about bankruptcy laws and proceedings, but I do see a lot of people who are convinced, and celebrating that the end of Mesa is near. Maybe it is. Maybe it isn't.

 

[S.T.Aviator]

January 06, 2010 11:20 AM Eastern Time
Mesa Air Group Receives Nasdaq Staff Delisting Notice


<!-- start story body -->PHOENIX--(BUSINESS WIRE)--On January 5, 2010, Mesa Air Group, Inc. (the “Company”) (Nasdaq: MESA) received a letter from The Nasdaq Stock Market (the “Exchange”) indicating the Staff’s determination that the Company’s securities will be delisted from the Exchange. This decision was reached by Nasdaq under Listing Rules 5101, 5110, 5110(b) and IM-5101-1 in view of the January 5, 2010 announcement by the Company of a voluntary filing by the Company for relief under Chapter 11 of the U.S. Bankruptcy Code. The Company does not intend to take any further action to appeal the Exchange’s decision. Accordingly, trading of the Company’s common stock will be suspended at the opening of business on January 14, 2010, and a Form 25-NSE will be filed with the Securities and Exchange Commission (“SEC”) which will remove the Company’s common stock from listing and registration on the Exchange.
The Company’s common stock will not be immediately eligible to trade on the OTC Bulletin Board or in the “Pink Sheets.” The Company’s common stock may become eligible if a market maker makes application to register in and quote such securities in accordance with SEC Rule 15c2-11 (a “Form 211”), and such application is cleared. Only a market maker, not the Company, may file a Form 211.
Mesa currently operates 130 aircraft with approximately 700 daily system departures to 127 cities, 41 states, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,500 employees.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this press release that are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could result in actual results differing materially from expected results and represent the Company's expectations and beliefs concerning future events based on information available to the Company as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Additional information regarding risk factors that may affect future performance at the Company are contained in the Company's SEC filing, including without limitation the Company's Form 10-K for its fiscal year ended September 30, 2008.
<!-- end story body -->

 

[Firebird2XC]

Nevermind the fact TPIC isn't worth much more than the paper (or electrons) it's printed on in the current environment. I topped 1000 TPIC the other day. When I blocked in, I wasn't met with confetti cannons or a brass band. I turned my phone on.....no phone calls from majors begging me to interview. I was so disappointed I had to go cry in the corner in the crew room.

Funny how things change, ain't it?

Perhaps now is the time to realize that

A) You may in fact be at the so-called 'regional' airline you currently work for for a very, very long time. Accepting less now because of the 'up and out' mentality may horribly backfire.

B) Rapid upgrade, and the high employee turnover or company expansion that it requires, may in fact come with a heavy price.

 

[tonyw]

but who says they NEED financing? Historically, Mesa has been a fairly profitable company. It really wasn't until they started throwing money at lost lawsuits and the independent operation in Hawaii that they really started to lose money.

Who says GM or Chrysler NEEDS financing? Historically, they were very profitable companies. It wasn't until recently when gas prices went up and their money making large trucks went down the tubes that they really started to lose money.

Companies need liquidity in order to continue to operate. Mesa has very little or they wouldn't have filed for chapter 11. Thus, they will need to get financing from someone. The capital markets, while not in as bad shape as they were back in the fall of 2008, are a long way from loose.

 

[StrykerINF]

this is probably a stupid question since I'm not as aviation business savvy as a lot of you guys. What determining factors do companies go by to liquidate or try to save? Several airlines have filed for chapter 11 restructured and came back strong.. others like ATA were liquidated? Any insight?

 

[galvestonaggie]

Word on the street is that Larry Kellner is starting some type of financinal holding company that is "supposidlty" ment to faciliate a merger of some form between CAL and United, apparently United has a train load of dept coming due at years end and the rumor is that Kellners group will buy up this debt and effectly take control of United. Now in the process doing so it's also RUMORED that Kellners group will infuse some capital into XJT who will then make a bid for Masa. Any thoughts on this??

 

[Soul Brotha']

CMR couldn't pick up any extra flying. We are so understaffed we can barely do our current flying. That is the way Mngt wants it. DL asked our CEO to pick up extra flying in ATL this month and we couldn't. We furloughed way too many guys/gals. Our Mngt thinks DL flying is too uncertain. They don't want to bring in any furloghs and train them, only to furlough them agian in 6 months. We have the planes just not the crews to staff them. As far as mainline taking over those routes, keep dreaming. Who needs an MD-88/737 going from CVG-DSM/TUL/SYR/ROC etc.? I want to see it, but mngt doesn't see it. I think this 50 seat feed is going bye, bye.​

 

[kellwolf]

CMR couldn't pick up any extra flying. We are so understaffed we can barely do our current flying. That is the way Mngt wants it. DL asked our CEO to pick up extra flying in ATL this month and we couldn't. We furloughed way too many guys/gals. Our Mngt thinks DL flying is too uncertain. They don't want to bring in any furloghs and train them, only to furlough them agian in 6 months. We have the planes just not the crews to staff them. As far as mainline taking over those routes, keep dreaming. Who needs an MD-88/737 going from CVG-DSM/TUL/SYR/ROC etc.? I want to see it, but mngt doesn't see it. I think this 50 seat feed is going bye, bye.​

If that ATL flying was GSO, SGF, TYS and DSM, I can tell ya who jumped all over it like a crack .....

 

[jtrain609]

That makes everybody feel warm and fuzzy inside, but realistically that's not going to happen. The majors involved will shed the 50 seat flying as much as possible but keep the 700/900 flying.

Except Continental, which can't because of, and say it with me folks, "SCOPE!"

 

[Hootie]

Well said! I'd love to see USairways keep the E190 and put them out West and recall all their pilots.... DAL/UAL to follow suit and keep the flying in house.

Totally, couldn't agree more. If all the majors took all the flying back we would all be much better off.

.... If nothing else keep it in house and put it on with a wholly own such as Mesaba, Comair, Compass..... Stop paying someone else to do the flying you can do cheaper in house

Thats like saying the pimp should purchase his ho's, that way he can benefit from not having to pay them as long as they are fed and housed because they are part of "the family". If the major partners only did their flying through their "wholly owned" that would eventually turn into a greater ponzi scheme than what it already is.