MESA to fly additional 50 RJ''s

OP
A

AM49AAA

Member
Aug 20, 2002
92
0
According to a recorded message (1-877-MESA-CEO) by MESA CEO John Orenstein, MESA has entered into an agreement to add another 50 RJ''s next year to to the U code above and beyond the 20 just announced. If Midway gets off the ground there is potential to add 100 RJ''s into the U system between thes two carriers in 03.
 

PHenry

Newbie
Nov 22, 2002
5
0
[P]Any agreement has to be approved by US Airways' Pilots and the bankruptcy court, no press releases on US Airways or Mesa about it[BR][BR]PHOENIX, Nov 8, 2002 /PRNewswire-FirstCall via COMTEX/ -- [/P]
[P]Mesa Air Group, Inc. (Nasdaq: MESA), today announced that the United States Bankruptcy Court has approved a motion filed by US Airways to continue the existing regional jet codeshare agreement with Mesa. The approval will also allow Mesa to add 20 50-seat regional jets to its existing US Airways Express fleet. All 20 additional regional jets are expected to be integrated into the US Airways Express network in 2003. [/P]
[P](Photo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065 ) [/P]
[P]We are pleased that the court recognized the importance of regional jets to US Airways' future, said Jonathan Ornstein, Mesa's Chairman and Chief Executive Officer. We appreciate the opportunity to further strengthen our partnership with US Airways. [/P]
[P]Mesa currently operates 126 aircraft with 919 daily system departures to 147 cities, 36 states, Canada and Mexico. It operates in the West and Midwest as America West Express, the Midwest and East as US Airways Express, in Denver as Frontier JetExpress, in Kansas City with Midwest Express Airlines and in New Mexico as Mesa Airlines. The Company, which was founded in New Mexico in 1982, has approximately 3,300 employees. Mesa is a member of Regional Aviation Partners. [/P]
[P]This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or expected. The Company does not intend to update these forward-looking statements prior to its next required filing with the Securities and Exchange Commission. [/P]
[P]For further information regarding this press release please contact Ms. Benet Wilson at 602-685-4018 or Benet.Wilson@mesa-air.com . [/P][BR]A little behind are ya?[BR][BR][BR][BR][SPAN class=t]US Airways and Mesa Air Group Reach Agreement to Expand US Airways Express Regional Jet Network[/SPAN][BR][SPAN class=tt]Friday October 18, 2:46 pm ET[/SPAN] [BR][BR][BR]
[DIV class=ar]ARLINGTON, Va., Oct. 18 /PRNewswire-FirstCall/ -- US Airways has reached an agreement with Mesa Air Group, Inc., to begin flying 20 additional 50-seat regional jets as part of the US Airways Express network, with the first of these aircraft to begin service in December 2002. All 20 of the regional jets will be integrated into the US Airways Express network during 2003.[BR][BR]As part of the agreement, which is subject to U.S. bankruptcy court approval, Mesa Air Group plans to participate in US Airways' Jets for Jobs program allowing some of this new regional jet flying to be done by furloughed US Airways pilots. [BR][BR]Mesa Airlines currently operates as a US Airways Express carrier, using a combination of regional jets and turbo-prop aircraft in 38 US Airways markets. Mesa Airlines, along with other subsidiaries of parent company Mesa Air Group, operate 32 regional jets and 41 turbo-prop aircraft as US Airways Express. [BR][BR]US Airways Express' three wholly-owned subsidiaries and seven affiliate carriers currently operate more than 2,000 flights daily, serving 161 destinations in the U.S., Canada and the Caribbean.[/DIV]
 

gilbertguy

Senior
Aug 29, 2002
368
0
[blockquote]
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On 11/23/2002 11:03:33 AM AM49AAA wrote:

According to a recorded message (1-877-MESA-CEO) by MESA CEO John Orenstein, MESA has entered into an agreement to add another 50 RJ's next year to to the U code above and beyond the 20 just announced. If Midway gets off the ground there is potential to add 100 RJ's into the U system between thes two carriers in 03.

How does this relate to the cutoff of talks about RJ's between Mgmt/ALPA earlier in week? Or is there no relationship to this?
 
C

chipmunn

Guest
[FONT face=Times New Roman size=3][FONT size=2][FONT size=3]The next US bankruptcy Omnibus Hearing is scheduled for December 12 where additional RJ flying is expected to be authorized.[BR][BR]Mesa Airlines CEO Jonathan Ornstein told employees in his November 22 weekly recorded message, at 877-637-2236, Mesa has entered into an agreement to add 50 additional RJs to the US Airways Express network.[BR][BR]This will be principally financed by GECAS, formally announced before the stock market opens Monday and subject to Jets for Jobs. Ornstein said he is trying to wrap up the J4J issue and presumably this will complete the Freedom Air negotiation shortly.[BR][BR]This flying will be in addition to the 20 50-seat Mesa RJ expansion which will begin in December and the 32 CRJs Mesa currently operates for US Airways Express. This would give Mesa over 100 RJs flying in the network.[BR][BR]With Midway Airlines and the potential to add RJs at the current wholly owned airlines, US Airways could add over 100 RJs to the network next year. Ornstein also said he expected it would be difficult for UA to avoid bankruptcy and US would seek another round of concessions from its employees.[BR][BR]Chip[/FONT][BR][/FONT][/FONT]
 
Mesa Air Group Reports 4th Quarter Results and Letter of Intent With US Airways for 50 Additional Regional Jets

Monday November 25, 8:02 am ET

PHOENIX, Nov. 25 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA - News) today announced a fiscal fourth quarter net loss of $20.8 million on revenues of $132.2 million, or 64 cents per share. Including pro forma adjustments of $25.3 million, fourth quarter earnings would have been $4.4 million, or 14 cents per share on a diluted basis. This compares to a pro forma loss of $3.9 million on revenues of $121.2 million, or 12 cents per share for 2001. A net loss of $48.4 million, or $1.49 per share, was reported in the fourth quarter of 2001.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065 )

The year-to-date net loss was $9.3 million on revenues of $496.8 million, or 28 cents per share. Including pro forma adjustments of $26.1 million, year- to-date earnings would have been $16.8 million, or 50 cents per share on a diluted basis. This compares to pro forma earnings of $15.3 million on revenues of $523.4 million, or 47 cents per share on a diluted basis for fiscal 2001. The Company reported an after-tax loss of $48.1 million, or $1.50 per share in fiscal 2001.

During the fourth quarter, the Company continued its regional jet expansion by adding four ERJ 145 regional jets and two 64-seat CRJ700 aircraft to its fleet. Subsequent to quarter end, the two CRJ700 aircraft went into revenue service in October, and two additional 64-seat aircraft were delivered, bringing the number of regional jets in the fleet to 68.

In addition, the Company completed its previously announced 4.4 million share repurchase program and announced a new share repurchase program for an additional 2 million shares. Also during the quarter, flight attendants at Mesa Airlines, Inc., represented by the Association of Flight Attendants (AFA), overwhelmingly approved a new four-year contract.

Subsequent to year-end, the Company reached agreement with US Airways to expand their regional jet agreement by adding 20 50-seat regional jets to the existing fleet of 32 regional jet aircraft. The 20 additional regional jets are scheduled to be integrated into the US Airways Express network in 2003, subject to compliance with the 'jets-for-jobs' provisions of the US Airways pilot contract. The aircraft are expected to be provided from a combination of internal and external sources. The agreement, including the original 32 regional jets under contract, was ratified by the United States Bankruptcy Court on November 8, 2002. Additionally, on November 22nd the Company signed a letter of intent with US Airways to provide an additional 50 regional jets. The aircraft, which will also be subject to 'jets-for-jobs,' would be delivered beginning in mid to late-2003. The Company also agreed to issue US Airways 3 million warrants as part of its agreement to provide the additional 50 regional jets. As part of the US Airways bankruptcy restructuring, the Company also agreed to release its claim against $4.3 million in payments previously withheld by US Airways following the events of September 11, 2001.

On November 4, 2002, the Company's subsidiary CCAir ceased flying. CCAir currently has no plans to resume operations. As a result, the Company recorded an after-tax charge of $12.2 million to reflect the expected cost of shutting down the operation. During the quarter CCAir lost $3.1 million from operations on an after-tax basis.

During the quarter, the Company returned 12 of the 15 B1900D aircraft permitted under its agreement with Raytheon. As a result of unanticipated increases in the cost of meeting return conditions, an additional after-tax impairment charge of $2.0 million was recorded. The proceeds from the sale of these aircraft were used to offset debt secured by the aircraft and the Company's debt balance was reduced by $32.7 million. The remaining three aircraft are expected to be returned to Raytheon by the end of the fiscal second quarter. The Company also took an after-tax charge of $2.2 million to accrue for the future costs of returning two Shorts 360 aircraft that have been on a sublease to a European operator.

During the quarter, the Company's financial results were negatively impacted by lower than expected revenue in its prorate business at Frontier JetExpress and US Airways Express. In addition, the Company incurred higher than expected engine maintenance expenses due to problems related to unexpected component failures, resulting in the premature removal and overhaul of these jet engines. The Company has addressed this issue with one of the engine manufacturers and has reached a memorandum of understanding which will mitigate the problem going forward. The Company has also begun discussions with the other engine manufacturer in an attempt to reach a similar agreement. The Company also incurred certain incremental expenses related to the start-up of its Freedom Airlines subsidiary.

This quarter marked initial service of our larger regional jets and we look forward to a significant expansion of our flying capacity in the coming months, said Jonathan Ornstein, Mesa's CEO and Chairman. We are also delighted with our new agreement with US Airways and anticipate the opportunity to contribute to their successful restructuring.

We continued to make significant strides despite the many challenges facing the industry. We are disappointed in our turboprop operations, and in particular CCAir, which in spite of great efforts by its employees and the company was unable to turn around in the current environment. We intend, however, to offer jobs to all of CCAir's former employees and would like to thank them for their hard work and dedication over the years. Mesa's operating statistics for the three months ended September 30, 2002

Percent
2002 2001 Change

Passengers 1,385,303 1,164,113 19.0%
Available Seat Miles (000s) 957,243 813,308 17.7%
Revenue passenger miles
(000s) 562,485 448,385 25.4%
Load Factor % 58.8 55.1 3.7%
Yield (cents) 23.5 26.7 -12.0%
Revenue per ASM (cents) 13.8 14.7 -6.1%
Operating Cost per ASM (cents) * 13.5 24.3 -44.4%
Stage length (miles) 313.0 260.2 20.3%

* Excluding one-time items


Mesa's operating statistics for the year ended September 30, 2002

Percent
2002 2001 Change

Passengers 5,118,839 4,789,180 6.9%
Available Seat Miles (000s) 3,459,427 3,289,216 5.2%
Revenue passenger miles
(000s) 1,986,164 1,796,058 10.6%
Load Factor % 57.4 54.6 2.8%
Yield (cents) 25.0 28.8 -13.2%
Revenue per ASM (cents) 14.4 15.9 -9.4%
Operating Cost per ASM (cents) * 13.6 18.1 -24.9%
Stage length (miles) 298.1 268.3 11.1%

* Excluding one-time items


MESA AIR GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended
September 30, September 30,
2002 2001
Operating revenues:
Passenger $128,352 $117,447
Freight and other 3,826 3,785
Total operating revenues 132,178 121,232
Operating expenses:
Flight operations 71,949 69,182
Maintenance 31,889 28,675
Aircraft and traffic servicing 12,260 11,931
Promotion and sales 2,695 4,516
General and administrative 11,916 23,789
Depreciation and amortization 2,898 3,369
Impairment of long-lived assets 26,675 58,113
Total operating expenses 160,282 199,575
Operating loss (28,104) (78,343)
Other income (expense):
Interest expense (443) (2,624)
Interest income -- 567
Other income (expense) (3,130) 8,479
Total other income (expense) (3,573) 6,422
Loss before income taxes and
minority interest (31,677) (71,921)
Income tax benefit (10,804) (23,515)
Loss before minority interest (20,873) (48,406)
Minority interest 58 --

Net loss $(20,815) $(48,406)

Loss per common share:
Basic $(0.64) $(1.49)
Diluted $(0.64) $(1.49)


PRO FORMA:

Net loss $(20,815) $(48,406)
Impairment of aircraft held for sale
and other charges, after tax 16,459 36,200
Net loss of CCAir, before impairment
and after tax 3,143 --
Investment loss, after tax 1,822 3,500
US Airways claim release, after tax 2,653 --
Allowance for uncollectible receivables,
after tax -- 8,800
Government grant, after tax -- (8,900)
Tax valuation allowance and change in
effective tax rate 1,234 4,900
Minority interest (58) --
Pro forma net income (loss) $4,438 $(3,906)

Income (loss) per common share:
Basic $0.14 $(0.12)
Diluted $0.14 $(0.12)


MESA AIR GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)

Twelve Months Ended
September 30, September 30,
2002 2001
Operating revenues:
Passenger $480,826 $508,518
Freight and other 15,957 14,860
Total operating revenues 496,783 523,378
Operating expenses:
Flight operations 262,501 270,802
Maintenance 100,037 100,302
Aircraft and traffic servicing 46,057 53,246
Promotion and sales 12,548 22,233
General and administrative 44,256 52,904
Depreciation and amortization 10,931 13,680
Impairment of long-lived assets 26,675 80,853
Total operating expenses 503,005 594,020
Operating loss (6,222) (70,642)
Other income (expense):
Interest expense (5,440) (13,469)
Interest income 1,542 1,822
Other income (expense) (3,404) 10,914
Total other expense (7,302) (733)
Loss before income taxes and
minority interest (13,524) (71,375)
Income tax benefit (3,632) (23,299)
Loss before minority interest (9,892) (48,076)
Minority interest 583 --

Net loss $(9,309) $(48,076)

Loss per common share:
Basic $(0.28) $(1.50)
Diluted $(0.28) $(1.50)


PRO FORMA:

Net loss $(9,309) $(48,076)
Impairment of aircraft held for sale
and other charges, after tax 16,459 49,957
Net loss of CCAir, before impairment
and after tax 3,143
Investment income, after tax 1,668 4,973
US Airways claim release, after tax 2,653 --
Allowance for uncollectible receivables,
after tax -- 8,800
Legal settlement, after tax 1,728 --
Government grant, after tax -- (8,900)
Tax valuation allowance and change in
effective rate 1,077 8,585
Minority interest (583) --
Pro forma net income $16,837 $15,339

Income per common share:
Basic $0.51 $0.48
Diluted $0.50 $0.47




As of September 30, 2002, the Company's cash and marketable securities were approximately $54.4 million.

Mesa currently operates 124 aircraft with 889 daily system departures to 147 cities, 37 states, Canada and Mexico. It operates in the West and Midwest as America West Express, the Midwest and East as US Airways Express, in Denver as Frontier JetExpress, in Kansas City with Midwest Express and in New Mexico as Mesa Airlines. The Company, which was founded in New Mexico in 1982, has approximately 3,000 employees. Mesa is a member of Regional Aviation Partners.

This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. These statements, in addition to statements made in conjunction with the words expect, anticipate, intend, plan, believe, seek, estimate, and similar expressions, are forward-looking statements within the meaning of the Safe Harbor provision of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements relate to future events or the future financial performance of Mesa and only reflect Management's expectations and estimates. The following is a list of factors, among others, that could cause actual results to differ materially from the forward-looking statements: changing business conditions in certain market segments and industries; changes in Mesa's code sharing relationships; the ability of US Airways to successfully reorganize and emerge from bankruptcy; the inability of either America West or US Airways to pay its obligations under the code share agreements; the ability of Mesa to successfully retire portions of its turboprop fleet; the unavailability of, or inability to secure upon acceptable terms, financing necessary to purchase aircraft we have ordered: an increase in competition along the routes Mesa operates or plans to operate; delays in completion by the manufacturer of the ordered and yet-to-be delivered aircraft; changes in general and regional economic conditions; changes in fuel price; the increased cost and reduced availability of insurance; Mesa's relationship with employees and the terms of future collective bargaining agreements; the impact of current and future laws: additional terrorist attacks; Congressional investigations, and governmental regulations affecting the airline industry and Mesa's operations; bureaucratic delays; amendments to existing legislation; consumers unwilling to incur greater costs for flights; unfavorable resolution of negotiations with municipalities for the leasing of facilities; and risks associated with litigation outcomes. One or more of these or other factors may cause Mesa's actual results to differ materially from any forward-looking statement. Mesa is not undertaking any obligation to update any forward -looking statements contained in this press release.

For further information regarding this press release please contact Peter Murnane at 602-685-4010 or Peter.Murnane@Mesa-Air.Com
 
C

chipmunn

Guest
Mesa Adds Jets

ARLINGTON (theHub.com) - US Airways has signed a preliminary agreement with Mesa Air Group under which Mesa would fly an additional 50 new regional jets as US Airways Express. The aircraft would be a mix of 70-seat and 50-seat RJs. Adding the 70-seat aircraft would require a change in the scope provision of US Airways' contract with the Air Line Pilots Association and negotiations are under way on that issue. The change, however, would allow a more rapid introduction of the larger RJs into the US Airways Express system. This would allow the company to reap the revenue benefits of the RJs sooner than waiting to deploy them at the MidAtlantic Airways subsidiary when US Airways is able to finance the aircraft following its emergence from bankruptcy.

In addition, Mesa's pilot union would have to agree to the Jets for Jobs provision that would place US Airways' furloughed pilots into at least 50 percent of the positions created by the new aircraft, which would be delivered in mid-to late-2003.
 

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