Mesa Exploring Chapter 11

[jimntx]

Is that an escape clause in the contract between MESA and US? Bankruptcy does not allow a corporation to cancel contracts or obligations willy-nilly.

Depends upon if you are the company in bankruptcy or not.The bankrupt corporation has to have the courts permission to cancel a contract. However, here the topic is Mesa being in bk, not LCC. I'm guessing that LCC could very well have a clause that allows them to cancel if the vendor goes into bk.
They are well aware of how vendors and debtors can be treated by a bankrupt company.

 

[luvthe9]

http://money.aol.com/news/articles/_a/mesa...5886x1200307248 Mesa cash crunch article 5/23/08

 

[oldiebutgoody]

If I recall correctly, the whole Mesa disaster was a scheme by JO and Dave Siegel to get around scope language by the labor groups at the major airlines. The entire "fee for departure" scheme has been the biggest fiasco the airlines have been involved in for years if not ever. It ruined the airlines, wrecked on-time service and cost airlines and their creditors and labor billions. Just look at the airlines- the successful ones, SWA, JBLU and others have nothing to do with these parasites.

I, for one, think it's about time these fee for departure airlines disappear forever. It will be better for the major carriers and airline customers as well.

Note: this is not to imply that there are not a lot of great employees at these carriers that deserve better. It's just that this is a scheme that needs to go away.

 

[USA320Pilot]

Most analysts believe one big solution to the airline's energy crisis is a reduction of ASM's.

If Mesa files for bankruptcy protection their 56 RJ’s and 6 turboprops dedicated to US Airways operations may be removed from the network.

Another RJ development is the company is actively seeking the LGA perimeter exemption and may be close to announcing a deal with the PANYNJ. Last Monday the company had new taxi line surveys completed for the B757 and EMB-190 aircraft. The EMB-190 is scheduled to fly one LGA-PIT flight per day (9:20 am) and the B757’s could fly 5 trips per day between LGA and PHX and LGA and LAS. If this occurs reports indicate the company would pull down 60 LGA RJ flights per day to reduce capacity and replace some of this flying with mainline aircraft.

And, it is my understanding that United has asked Air Wisconsin to bid on a new "fee for service" agreement, which could be designed to replace MESA's United Express 65 RJ and 10 turboprop aircraft.

If Mesa liquidates a combined US Airways and United would lose 121 RJ and 16 turboprops, provided the two business partners reach an agreement for another "corporate transaction".

Regards,

USA320Pilot

 

[SpinDoc]

Another RJ development is the company is actively seeking the LGA perimeter exemption and may be close to announcing a deal with the PANYNJ. Last Monday the company had new taxi line surveys completed for the B757 and EMB-190 aircraft. The EMB-190 is scheduled to fly one LGA-PIT flight per day (9:20 am) and the B757’s could fly 5 trips per day between LGA and PHX and LGA and LAS. If this occurs reports indicate the company would pull down 60 LGA RJ flights per day to reduce capacity and replace some of this flying with mainline aircraft.

This is an excellent proactive move on US part. The FAA has already decided to give out slots at LGA, EWR, and JFK by means of a lottery, and in the process, they will be reducing the number of slots available to minimize the ground delay programs that are in place on a daily basis.

I don't know who thought it was a good idea to cram thousands of 50 seat RJ flights into NY area airports every day and jam the airspace, but all carriers are guilty of doing it. I think US Airways finally understands that it is less costly to send fifteen 100-180 seat aircraft into these airports than it is to have 35 RJ's sitting on the ground at their departure point, taking up gate space, or sitting at a remote parking area with the engine/APU running (burning fuel) while waiting for ATC clearance.

Dare I say that the cost of fuel is making the Sandcastle rethink the RJ situation?

 

[USA320Pilot]

I forgot to add one point...Air Wisconsin has a large LGA presence and as part of the LGA RJ reduction/airport congestion relief plan this flying could be transfered to United Express to replace Mesa flying.

This would permit Air Wisconsin, US Airways, and United to remain good business partners and along with Mesa's unfortunate demise, the LGA mainline/RJ re-allocation, and potential merger dold reduce high cost capacity in the new combined network if a "corporate transaction" proceeds.

Regards,

USA320Pilot

 

[JetMonkey]

Hate to break it to you, but anyone that is thinking that Mesa's downfall would lead to anything other than a reduction in flying at US Airways need their head examined.

Quite simply, the E-190's and Republic can and will replace the CRJ-900's, and the 50 seat flying that Mesa operates for US Airways will simply go away.

The most likely area of "growth" for anyone from Mesa going under, might be with the Dash 8's, but even then there is no guarantee that it would come to Piedmont (instead of a cheaper vendor)...

No, Delta's getting rid of Mesa because they don't need them at all. US Airways needs Mesa to a smaller degree, but not to the point at which it will not take advantage of the golden opportunity to reduce it's RJ fleet.

The only chance Mesa has is that in BK protection, US Airways cannot shed them. IF Mesa is able to find financing for a restructuring (good luck with that in today's credit market), you might see a Mesa version of what happened at US Airways in the past, where Mesa itself sheds it's 50 seaters, obtains stiff concessions from it's labor, and retools itself to fly only the 900 (and possibly the DHC8) at even cheaper rates than they offer now.

Doubt it.

Well at least if E190's are used to replace some lost flying it will be flown by mainline. That's pure growth flying, something we haven't seen in a while. Especially out west.

 

[YVINTERN]

Absolutely and it would be nice to see the E190s out West.