Mesa loses to Delta

From the little I can gather, it seems the court has upheld Delta's termination of Mesa's contract.


IF memory serves, if there is no contract, then Mesa can't claim said contract in bankrupcy... If that is the case, is Mesa done for? :dunno:
 
ctab5060X said:
If that is the case, is Mesa done for? :dunno:
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Mesa was going to lose the delta contract in 2012 anyways and was going to be stuck with a boat load of ERJs. They're in Bk, and they could probably unload all of them right now as a result of this ruling. It may not be all that bad for Mesa but they may be a 30-50 CRJ7/9 airline very soon...
 
Agreed with SOCAL. From everything I've read, I'd assume Mesa includes the 145's in the BK, unloads them, and becomes a strictly -700/-900 airline. This might benefit them (read- JO) in the long term. JO keeps milking the cow, the Mesa pilots continue to get screwed as more furloughs result. Just my opinion, nothing more.
 
Quite possible but I don't exactly trust messages on finance message boards that don't include the PACER decision files. Sure, Mesa is traded OTC now but that doesn't stop anyone from trying to manipulate the price.
 
PACER requires a membership to access. Somebody posted the decision as a google doc here.

The key bit is

The Clerk of Court is hereby INSTRUCTED to enter judgment in favor of Delta and against Plaintiffs, awarding Delta damages in the amount of $2,938,723.00.
SO ORDERED this 17th day of May, 2010 .
CLARENCE COOPER
SENIOR UNITED STATES DISTRICT JUDGE
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Only thing on DeltaNet so far is they're supporting the ATA lawsuit against the NMB ruling....not that that is a shocker.
 
It's all in who you know... ;)

Directly from PACER (sorry for the poor formating).

-------------------------------------------------

05/17/2010 Civil Case Terminated. (aaq) (Entered: 05/17/2010)

05/17/2010181 CLERK'S JUDGMENT in favor of defendant Delta Air Lines, Inc. against plaintiffs Mesa Air Group, Inc. and Freedom Airlines, Inc. for $2,938,723.00 in damages. (aaq)--Please refer to http://www.ca11.uscourts.gov to obtain an appeals jurisdiction checklist-- (Entered: 05/17/2010)

05/17/2010180 FINDINGS OF FACT AND CONCLUSIONS OF LAW: The Clerk is INSTRUCTED to enter judgment in favor of Delta and against Plaintiffs, awarding Delta damages in the amount of $2,938,723.00. Signed by Judge Clarence Cooper on 5/17/10. (aaq) (Entered: 05/17/2010)


-------------------------------------------------


UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION​


MESA AIR GROUP, INC. and FREEDOM
AIRLINES, INC.,​

Plaintiffs, ​

CIVIL ACTION FILE​

v. 1:08-cv-1334-CC​

DELTA AIR LINES, INC.,​

Defendant.​

J U D G M E N T​
This action having come before the court, Honorable Clarence Cooper, United States District Judge at a bench trial on the merits on April 20-23, 2010, pursuant to an agreement of the parties that the instant case proceed to trial notwithstanding Plaintiff’s bankruptcy filing, and the court having found in favor of Defendant, it is​


Ordered and Adjudged that judgment is hereby entered in favor of defendant Delta Air Lines, Inc. against plaintiffs Mesa Air Group, Inc. and Freedom Airlines, Inc. for damages In the amount of $2,938,723.00.


Dated at Atlanta, Georgia, this 17th day of May, 2010.​




JAMES N. HATTEN​

CLERK OF COURT​





By: Amanda Querrard​

Deputy Clerk​

Prepared, Filed and Entered​

in the Clerk's Office​

May 17, 2010​

James N. Hatten

Clerk of Court
By: s/Amanda Querrard​

Deputy Clerk
 
kellwolf said:
Only thing on DeltaNet so far is they're supporting the ATA lawsuit against the NMB ruling....not that that is a shocker.
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Delta doesn't usually update Deltanet after hours. It will be on there tomorrow. They did the same thing when they canceled the contract way back when. Didn't find out till the next day.

From the man himself

It is with extreme disappointment and a heavy heart that I share the following news with you. Earlier today we received notice that Judge Cooper in Atlanta had effectively reversed his earlier decision and ruled against us in the Delta litigation. Needless to say we are all very surprised that the judge determined Delta had the right to terminate our agreement solely on the basis that, in good faith and as good partners, we cancelled our flights at their request to make way for their flights during periods of irregular ops. We, the company and our people, are effectively being “punished” retroactively because we did what they asked us to do. I can tell you without equivocation that I was told directly by their Chief Operating Officer that cancellations we took at their request would not be held against us. This individual testified he said that as well. I am truly at a loss as to how this outcome is the intent of the law. Below you will find a press release that will be issued shortly.



We are in the process of evaluating our options and have not determined how this decision will impact the company. We will keep you fully informed as more information becomes available. In the mean time, we can only focus on those areas within our control by continuing to run a safe, on time airline in the service of our code share partners. I would like to thank each of you, and in particular our people at Freedom for your outstanding work through the very difficult environment we have experienced over the last two years. In spite of what we believe to be an incorrect decision by the Court, I remain as confident as ever that your professionalism and dedication will provide a strong foundation for the future and will serve as the basis for our return to success. As always feel free to contact me if you have any questions.



Most sincerely,



Jonathan
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If anyone wants the full Findings of Fact and Conclusions of Law, let me know. I have the full 78 page document.
 
Yup.

I have it as well, was planning on putting it on scrib tomorrow morning. . .but. . .ctab you may be able to do it quicker.
 
Honestly I have no idea how Delta won, that sets a large precedent for regional operators to NOT cancel flights at the request of the mainline partner. Actually the more I think about it, the more f'ed up it is that Delta won the second time.
 
It's not Delta's fault Mesa's lawyers didn't decide it was important enough to define what completion factor is.

It's important to remember that every service agreement is different, with different lawyers, and different standards for meeting performance goals and requirements.
 
I can tell you without equivocation that I was told directly by their Chief Operating Officer that cancellations we took at their request would not be held against us. This individual testified he said that as well.
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Like I said pretty messed up.
 
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