Mesa Obtains Us Airways Express Assets

[USA320Pilot]

Mesa Air Group Announces Successful Bid For The Acquisition of Midway Airlines Assets

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Chip comments: Today's Mesa Press Release said the agreement to obtain Midway's assets"included aircraft landing and/or takeoff slots at New York LaGuardia and Washington National airports," which had been operated by Midway under the US Airways Express marketing agreement. In addition, the Phoenix-based company said "the assets of Midway Airlines will be placed into service under long-term revenue-guarantee contracts with our airline partners." In my opinion, I believe Dave Siegel and Jonathon Ornstein worked together to obtain Midway's assets and these aircraft will operate under the new Mesa-US Airways December 1 agreement to add 7 50-seat RJs to the US Airways Express network.

Regards,

Chip

 

[Hope777]

Chip, I guess we lost out again. If I understood correctly, the Landing Slots secured our Loan to Midway? But I guess since the certificate is still valid, J.O. and MESA own them. So bottom line, we probably lost more then we made in the JI deal. Another smart investment with OUR money.

 

[AOG-N-IT]

Mesa Air Group Announces Successful Bid For The Acquisition of Midway Airlines Assets

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Chip comments: Today's Mesa Press Release said the agreement to obtain Midway's assets"included aircraft landing and/or takeoff slots at New York LaGuardia and Washington National airports," which had been operated by Midway under the US Airways Express marketing agreement. In addition, the Phoenix-based company said "the assets of Midway Airlines will be placed into service under long-term revenue-guarantee contracts with our airline partners." In my opinion, I believe Dave Siegel and Jonathon Ornstein worked together to obtain Midway's assets and these aircraft will operate under the new Mesa-US Airways December 1 agreement to add 7 50-seat RJs to the US Airways Express network.

Regards,

Chip

So what did U itself get for providing loans to Midway???

The way it looks...Mesa and Johnny O got it all.....and U just got JO deeper into our pockets.

Weren't those gate positions leveraged and tied to our loans to Midway?? WTF is going on here???


PS...can anyone other than myself see why we can't make money around here???

 

[USA320Pilot]

It appears this deal will permit US Airways can keep its 7 affiliate carrier RJ's in operation and the Arlington-based airline will improve its unrestricted cash balance by being re-paid its $8 billion in Midway DIP financing.

In addition, there will be no management impediment to begin operations with no transfer of the ALPA CBA (not good for ALPA and the pilot group), J4J will applied to the service, and US Airways will streamline its affiliate carriers with its preferred partner Mesa Air Group.

Regards,

Chip

 

[AOG-N-IT]

It appears this deal will permit US Airways can keep its 7 affiliate carrier RJ's in operation and the Arlington-based airline will improve its unrestricted cash balance by being re-paid its $8 billion in Midway DIP financing.

In addition, there will be no management impediment to begin operations with no transfer of the ALPA CBA (not good for ALPA and the pilot group), J4J will applied to the service, and US Airways will streamline its affiliate carriers with its preferred partner Mesa Air Group.

Regards,

Chip

8 Billion Captain???....I guess our worries are over then ? (LOL)

Lets see...U P1SSED Away 2 Billion in Concessions in one year...imagine the non-events your mis-quote will stimulate.

 

[USA320Pilot]

In a statement on December 1 US Airways said, "US Airways has reached a deal with Mesa Air Group to add three 50-seat regional jets to its existing revenue-guarantee agreement. The amendment, which is subject to US Airways’ Board of Directors approval, increases the number of 50-seat regional jets under contract with US Airways to 59. Mesa currently has 52 of the 50-seat regional jet aircraft in service with US Airways. The three new aircraft, which will be acquired on operating leases from third-party lessors, are expected to be placed into service in early 2004. The remaining four aircraft under the contract will be delivered in December 2003. These aircraft will go into service for ten years.

Today in a statement Mesa said, "The assets include Midway's operating certificate, six leased CRJ aircraft including Midway's right to three additional leased aircraft and two owned CRJ aircraft, all of Midway's CRJ spare parts and support equipmentaircraft landing and/or takeoff slots at New York LaGuardia and Washington National airports." The press release also said "The assets of Midway Airlines will be placed into service under long-term revenue-guarantee contracts with our airline partners."

Meanwhile, US Airways said today, "We took no position in the Midway sale, but Mesa is a valuable partner and we will begin immediate discussions about their interest in operating the Midway regional jets as US Airways Express.â€￾

Chip comments: Where are the seven December 1 US Airways Express Mesa RJs coming from, why were the 50-seat fleet types not announced by the companies, and why did US Airways announce today that the Arlington-based airline would "begin immediate discussions" with Mesa if Mesa already said the Midway assets would be flown with "long-term revenue-guarantee contracts with our airline partners?"

Regards,

Chip

 

[the turtle]

ok Chip, I'll bite...

Mesa only placed into operation 32 of 36 ERJ's from it's initial year 2000 order. The remaining four are being delivered now. In fact, two are sitting in CLT as we speak, 857&858MJ. 859 & 860 will be here by end of December. Thats four. The other three are leased Kendal CRJ's from Australia which will be in service by end of Jan. 4+3=7.

THE TURTLE guesses that some of Midway's CRJ will go into USAir system and some back to Denver, for United. Mesa has flown these Midway CRJ's before, under wet leases, in our Frontier operation.

My question: will Mesa sell the Midway slots, or run them under codeshare?

 

[USA320Pilot]

Turtle:

Yesterday the AP reported if the bankruptcy court approves the sale of Midway's asset to Mesa, Mesa could begin flying a carrier based at Raleigh-Durham International Airport as early as January, said former Midway chief executive officer Bob Ferguson, who was acting as an adviser to bankruptcy trustee Joseph Callaway.

Therefore, I suspect the former Midway flying will be folded into Mesa flying offering the same service that Midway provided to US Airways Express. In fact, the AP said, "the Mesa-owned carrier likely would hire heavily from Midway's former pilots, mechanics and flight attendants, Mesa consultant Edward Wegel testified Wednesday."

Chip comments: I continue to believe Dave Siegel, Jonathan Ornstein, and Bob Ferguson worked together behind the scenes to complete this deal.

Regards,

Chip

 

[N628AU]

Turtle:

Yesterday the AP reported if the bankruptcy court approves the sale of Midway's asset to Mesa, Mesa could begin flying a carrier based at Raleigh-Durham International Airport as early as January, said former Midway chief executive officer Bob Ferguson, who was acting as an adviser to bankruptcy trustee Joseph Callaway.

Therefore, I suspect the former Midway flying will be folded into Mesa flying offering the same service that Midway provided to US Airways Express. In fact, the AP said, "the Mesa-owned carrier likely would hire heavily from Midway's former pilots, mechanics and flight attendants, Mesa consultant Edward Wegel testified Wednesday."

Chip comments: I continue to believe Dave Siegel, Jonathan Ornstein, and Bob Ferguson worked together behind the scenes to complete this deal.

Regards,

Chip

Mesa owned carrier? Is Mesa really going to operate yet another, separate carrier? With the history of WestAir, CCAir, and others, would it not be better just to operate it all in one place from the beginning.

Also, I wonder just how many CRJ spare parts Midway had. If it is any sizeable amount (doubtful), that may be helpful for Mesa.

 

[AOG-N-IT]

Turtle:

Yesterday the AP reported if the bankruptcy court approves the sale of Midway's asset to Mesa, Mesa could begin flying a carrier based at Raleigh-Durham International Airport as early as January, said former Midway chief executive officer Bob Ferguson, who was acting as an adviser to bankruptcy trustee Joseph Callaway.

Therefore, I suspect the former Midway flying will be folded into Mesa flying offering the same service that Midway provided to US Airways Express. In fact, the AP said, "the Mesa-owned carrier likely would hire heavily from Midway's former pilots, mechanics and flight attendants, Mesa consultant Edward Wegel testified Wednesday."

Chip comments: I continue to believe Dave Siegel, Jonathan Ornstein, and Bob Ferguson worked together behind the scenes to complete this deal.

Regards,

Chip

Mesa owned carrier? Is Mesa really going to operate yet another, separate carrier? With the history of WestAir, CCAir, and others, would it not be better just to operate it all in one place from the beginning.

Also, I wonder just how many CRJ spare parts Midway had. If it is any sizeable amount (doubtful), that may be helpful for Mesa.

Don't count on a lot of parts coming out of Midway at all

A person that both N628AU and I use to deal with at mainline...and now works on the ground floor at MDA was involved with the inventory of Midways assets after we forked over the DIP money .

He told me face to face in PIT that Midways inventory was in a shambles...and they couldn't account for almost 50% of their listed property in regards to Acft spares.

Having property on the books is a far cry from having parts on the shelf...I'm sure the post DIP assistance didn't do a heck of a lot to change this either.

 

[the turtle]

Turtle:

Yesterday the AP reported if the bankruptcy court approves the sale of Midway's asset to Mesa, Mesa could begin flying a carrier based at Raleigh-Durham International Airport as early as January, said former Midway chief executive officer Bob Ferguson, who was acting as an adviser to bankruptcy trustee Joseph Callaway.

Therefore, I suspect the former Midway flying will be folded into Mesa flying offering the same service that Midway provided to US Airways Express. In fact, the AP said, "the Mesa-owned carrier likely would hire heavily from Midway's former pilots, mechanics and flight attendants, Mesa consultant Edward Wegel testified Wednesday."

Chip comments: I continue to believe Dave Siegel, Jonathan Ornstein, and Bob Ferguson worked together behind the scenes to complete this deal.

Regards,

Chip

Chip,

Respectfully,

I seriously doubt Mesa will have anything to do with Midway's operating cert, Ferguson, or it's employees. Orenstein operates on the slimest of margins...having another carrier fly for U is inefficent. JO learned that lesson with CCAir, and Freedom, which is being folded back within Mesa to save costs. Central control in PHX is his game.

Also from that article:

But Mesa's Lotz said in a telephone interview from Phoenix after the hearing that no decision had been made about keeping the headquarters in Morrisville, restarting flights or hiring Ferguson.

Lotz said the main attraction of the assets were Midway's regional jets, which are increasingly being used by airlines because declining demand makes it difficult to fill large jetliners. But airlines are having trouble financing regional jet acquisitions because of industry turmoil. Midway's planes already have financing.

As part of the purchase, Mesa will assume about $90 million in debt on the airlines.

"We're one of the larger operators of regional jets, so we have a need for regional jets," Lotz said.

 

[Twicebaked]

Although I do feel bad that Midway liquidated, but that is what they DID LIQUIDATE. The pilots are trying to block the sale of the assests because Mesa won't honor their contract???? They don't have to. The company is gone. There are NO contracts for a company that doesn't exist. It doesn't matter what they might have said, they are gone.

Again, I feel horrible, but that is a losing battle. If US liquidates our contracts are gone. Our contracts wouldn't be honored either. If we are bought by another company with the same unions..yes, different unions..probably not, but liquidation..definately won't honor anything. US would, at that point, no longer exist. Midway wasn't bought as an operating company it was sold as assets (parts).

Good luck with that one guys...your gonna lose.

 

[jack mama]

AOG,
Why do you think US Airways loses out if Mesa picks up the slots and flying from Midway?

 

[flyin2low]

"Why do you think US Airways loses out if Mesa picks up the slots and flying from Midway? "

Just look at United and ACA's problem in IAD.

 

[AOG-N-IT]

AOG,
Why do you think US Airways loses out if Mesa picks up the slots and flying from Midway?

jack mama,

At first I saw our DIP investment as a sound strategic blocking move to keep other carriers from obtaining JI's slots in DCA...thus protecting our position there.

We also got a small boost in RJ flying that JI contributed to the U operation as well.

In this scenario all we are getting is the return of the 8 Million we provided JI in DIP funding , Yet I have seen or heard nothing about the simple issues of interest or profits on that money.

We have also given this deal to Mesa on a silver platter....and I fear greater involvement with Mesa beyond a possible repeat situation of the ACA / UA debacle.

Jonathan Orstein is on record for wishing to own a "major airline"...and I fear that MESA's stock situation being sound , could create a scenario at some point where JO will make a hostile move on U itself , like he is attempting with ACA at present.

Mesa is also not a wholly owned...and it's profiting all the while U sinks deeper in the muck and mire. What would happen if this greater dependence on Mesa lapsed into a situation like what is happening between ACA and UA?

I fear a loss of control of an already precarious destiny we are on....and I greatly fear the motives of Mesa's CEO.....I have seen what he's capable of in regards to what happended to my former US affiliate CCAir. I do not like what I'm seeing at all.