US Airways Reductions with Mesa

JaceTheAce

JaceTheAce

Well-Known Member
What's this about the possibility of US Airways eliminating Mesa's Dash operation?

http://www.aviationnews.net/?do=headline&news_ID=163255

Mesa said capacity reductions, which are planned to begin this month, could continue. Mesa said it has received notice that US Airways will reduce one CRJ-200 in January 2009, one CRJ-200 in July 2009 and one CRJ-200 in January 2010. "We anticipate that US Airways will continue to further reduce the number of covered aircraft in accordance with the agreement. In addition, US Airways may eliminate the Dash-8 aircraft upon 180 days prior written notice," Mesa said in a filing with the Securities and Exchange Commission.
Mesa said that as of Sept. 30, 2008, it operated 38 CRJ-900, 11 CRJ-200, and six Dash-8 aircraft for US Airways.
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Another article about reductions:
http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKN1338197120090113
 
Trust me, the folks in Tempe wouldn't mind dumping Mesa like a bad habit, but thinks they will weather the storm.
 
You know what? Mesa or not, it's a labor selection and regardless of what everyone says about timely departures, quality of service, and bad contracts, as long as it's the best financial alternative, then the company is gonna stick with it. If switching to a different company is too expensive, then they're not going to switch. ANYBODY could be dumped like a bad habit if the company thinks conditions warrant. Sorry, but pipe dreams have little to do with the other company or it's employees or their actions. It's all about the money.
 
falconvalley said:
You know what? Mesa or not, it's a labor selection and regardless of what everyone says about timely departures, quality of service, and bad contracts, as long as it's the best financial alternative, then the company is gonna stick with it. If switching to a different company is too expensive, then they're not going to switch. ANYBODY could be dumped like a bad habit if the company thinks conditions warrant. Sorry, but pipe dreams have little to do with the other company or it's employees or their actions. It's all about the money.
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You're right.

And. . .the best financial decision for US Airways might be to reinvest any further resources into a company that isn't likely to be in some form of bankruptcy by years end. Further, it might be reallocating any present resources to companies that are not as likely to be under significant financial stress.

Best financial decisions being what they are these days. . .It's all about money.
 
Best financial decisions being what they are these days. . .It's all about money they can put in the bank.
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:yeahthat:

On second thought, banks are not that safe these days also. :banghead:
 
Lemmie get this straight...we're discussing the reduction of THREE aircraft over the next 12 months? And this is thread worthy why exactly? I fail to see the point...Out of 55 aircraft they are merely seeing their share of the capacity reductions..jeez...as if this was a shock!

C'mon Jace my friend...wouldn't talking about the newest Pilot Dependability Program revision have been a topic of more substance?:p
 
I think what was also slightly news worthy was MAG's acknowledgment that US Airways may remove the Dash 8 aircraft fleet with a 180 day notice.
 
surreal1221 said:
I think what was also slightly news worthy was MAG's acknowledgment that US Airways may remove the Dash 8 aircraft fleet with a 180 day notice.
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A side bar topic but worthy of discussion for sure...Sorry Jace, just pickin on ya.

It's my understanding that mainline has been steadily reducing the Dash 8 flying out west over the last few years due to them just not being competitive against Horizon's Q400 domination of the western TP airline market. So this is certainly believable.
 
Of better interest is US Air lost $500 million in the 4th Q of 2008, a little more than half was a writedown due to bad fuel hedges. Man, I hope they are hedging now.

They ended 2008 with $2 billion in cash so that gives them about 1.5 years at their current loss rate to stay solvent.
 
wheelsup said:
Of better interest is US Air lost $500 million in the 4th Q of 2008, a little more than half was a writedown due to bad fuel hedges. Man, I hope they are hedging now.

They ended 2008 with $2 billion in cash so that gives them about 1.5 years at their current loss rate to stay solvent.
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They will be in the black next year.....
 
Maybe, maybe not..mainline..unfortunately hedged earlier this year at substantially more expensive prices then current market rate. That may very well kill any hope of black numbers for 09"
 
RightSeatGirl said:
Maybe, maybe not..mainline..unfortunately hedged earlier this year at substantially more expensive prices then current market rate. That may very well kill any hope of black numbers for 09"
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Did you not listen to the state of the airline today? If you did YOU would have heard Parker say none of our fuel is currently hedged. :) So next arguement?
 
If I'm not mistaken, we're hedged at $100/bbl through end of Q1, are we not? Hopefully we're writing new contracts at current prices that will kick in before the spring/summer gouging starts up...


The Pilot Dependability Program....I just read through it more carefully and, I've been playing with fire this week. I've been down with the flu, but elected not to call out sick (occurrence) figuring I wouldn't get called (didn't), but if called would inform them I was sick....not a good idea.
 
meyers9163 said:
Did you not listen to the state of the airline today? If you did YOU would have heard Parker say none of our fuel is currently hedged. :) So next arguement?
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WTF not? It's the lowest it's been in years, and the risk of it dropping is significantly lower than the risk of it increasing. This is why airlines don't make money!! :banghead:
 
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