Mesa Air files bankruptcy

[Tipfeather]

There are some posting on this forum that are either guilty of wishful thinking or deliberately spreading misinformation and I would question their credibility. Here are some facts related to the Mesa bankruptcy proceedings.

FACT #1: Mesa's contract with US Airways expires on June 30, 2012 with an optional two year extension.

FACT #2: Mesa requested no "Debtor in Posession" (DIP) financing during bankruptcy.

FACT #3: US Airways CEO Doug Parker stated that in the short term he expects "no changes" to Mesa's US Airways Express operations and that he sees nothing other than the "status quo". He stated that, while not guaranteed, in the long term the bankruptcy may provide "leverage" and an opportunity to renegotiate future agreements with Mesa.

FACT #4: Mesa received approval of all critical motions at its “first-dayâ€￾ hearing in the United States Bankruptcy Court for the Southern District of New York "covering its obligations to employees, suppliers and customers, business operations, tax matters, cash management, fuel procurement, and case management" during the reorganization.

tipfeather

 

[SparrowHawk]

There are some posting on this forum that are either guilty of wishful thinking or deliberately spreading misinformation and I would question their credibility. Here are some facts related to the Mesa bankruptcy proceedings.

Perhaps wishful thinking on my part, as I'm no fan of Mesa on any level. Thing is I'd like to see 3700 people keep their jobs, even if it is working for an a-hole like JO.

FACT #1: Mesa's contract with US Airways expires on June 30, 2012 with an optional two year extension.

The option would be at US Airways discretion so regardless of actual time frame US is still in the cat bird seat negotiations wise.

FACT #2: Mesa requested no "Debtor in Posession" (DIP) financing during bankruptcy. Neither did US Airways in their 2nd BK! Want to know why? no one would lend to them. Not even with Lakefield jangling his credibility and his rolodex and frankly when it come to financial acumen, JO couldn't carry Lakefield's jock strap.

FACT #3: US Airways CEO Doug Parker stated that in the short term he expects "no changes" to Mesa's US Airways Express operations and that he sees nothing other than the "status quo". He stated that, while not guaranteed, in the long term the bankruptcy may provide "leverage" and an opportunity to renegotiate future agreements with Mesa.

A well crafted statement designed to ensure customer confidence not in Mesa but US Airways. Secondly he put them on notice that if they survive US expects a sweetheart deal to renew and that to DP's credit is good business. IMO the ONLY way/reason to do business with the Abortion known as Mesa is at a rock bottom price. I think either Dougie gets his price and trust me he already has a range in mind or the contract with Mesa is circling the drain. DP needs Mesa until he can get new lift lined up as leverage, one that happens he's putting the gun to JO's head. I just hope he pulls the metaphorical trigger.

FACT #4: Mesa received approval of all critical motions at its “first-dayâ€￾ hearing in the United States Bankruptcy Court for the Southern District of New York "covering its obligations to employees, suppliers and customers, business operations, tax matters, cash management, fuel procurement, and case management" during the reorganization.

So what? So did US in both BK's and they were knocking on heavens door the entire time. Granting first day motions is pretty standard stuff

 

[Tipfeather]

Just mythbusting a little.

Tipfeather