Would US Airways buy Mesa?

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UPNAWAY

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Aug 17, 2005
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Something is up at Mesa, huge stock trading volume the last few days and they did not have a Conference call like they usually do after earnings. The Yahoo message board is full of speculation about a buyout.
Would US be a player? Why, why not? I am guessing if they where it would be a stock only deal no cash outlay.
Could Hawaii buy them to be a mainland feeder?

But to a bigger point we already have two wholly owned regionals, I am not sure why a company would go that route except for Scope limitations and possible tax benefits.

Has anyone heard anything at all that might lean to this happening?
 
But to a bigger point we already have two wholly owned regionals, I am not sure why a company would go that route except for Scope limitations and possible tax benefits.

Has anyone heard anything at all that might lean to this happening?

It wouldn't do anything to alter scope without contract changes, at least per the East contract and transition agreement. The language doesn't specify who can fly the bigger RJ's for Express, only that a certain number can be flown (see Repbulic's E175's for another Express operator of large RJ's).

Tax writeoffs are basicly worthless - there's enough NOL's left from "old" US plus the one's being added to last awhile so the company doesn't pay income tax.

Mesa is a mess financially - only the fee for departure contracts are keeping them afloat for now since everything else is losing money (well, excepting any EAS routes they have). The only positive about buying them that I can see is that they're cheap. The stock closed at 24 cents per share Friday. But on the other hand all you get if you buy them is debt and a bunch of leased or mortgaged airplanes, many of which are smaller RJ's that US doesn't need. Probably the most valuable thing Mesa has is an operating certificate.

Of course, put all that together and it may sound like a good idea to fiddle-de and fiddle-dumb...

Jim
 
Maybe Republic wants them. Since they have been on a shopping spree lately.
With all the problems that we have with MESA it would be nice for them to vacate
the system. Met with a young lady who used to work directly with Jonathan and
she said he was the most arrogrant fowl mouth individual she had ever met.
 
I agree...it's a Republic rummage sale buy!! Maybe the sandcastle is behind all of these Republic purchases. Didn't Republic want to use the smaller jets at Midwest..E190?? Frontier, Airbus and E-190 type A/C. Midwest moves a lot of people out of MKE and Frontier is a player at DEN...something to think about. Keep those minds wondering!! Thanks for listening...Enjoy your day...jetman out... B)
 
It might be cheaper to buy Mesa than to cancel the contracts with thm.

You by Mesa, then cancel the contracts with 'yourself' and then sell the operatinf cert.
 
It wouldn't do anything to alter scope without contract changes, at least per the East contract and transition agreement. The language doesn't specify who can fly the bigger RJ's for Express, only that a certain number can be flown (see Repbulic's E175's for another Express operator of large RJ's). Mesa is a mess financially - only the fee for departure contracts are keeping them afloat for now since everything else is losing money (well, excepting any EAS routes they have). The only positive about buying them that I can see is that they're cheap. The stock closed at 24 cents per share Friday. But on the other hand all you get if you buy them is debt and a bunch of leased or mortgaged airplanes, many of which are smaller RJ's that US doesn't need. Probably the most valuable thing Mesa has is an operating certificate.

Of course, put all that together and it may sound like a good idea to fiddle-de and fiddle-dumb...

Jim
I wonder how that press release would go.........


F. Forrest Gump (executive vice president US Airways) announced to day that US Airways will acquire MESA airlines. The US Airways executive team are also pleased to announce another BOHICA payout for current US Airways employees due to the acquisition of MESA. A 5% off coupon for Cold Stone Creamery and a TSA compliant trial size package of "Preparation H". Our employees should be able to get great value from this current BOHICA payout. "What the don't eat they can sit on".

Jonathan Ornstein has been named Executive Vice President of Draconian Labor Rules and Exploitation.

We are also happy to announce that ALL MESA pilots will remained employed. The company has agreed to the seniority list submitted by the MESA pilot group and RALPA Regional Airline Pilots Association.

Pilots on the list will immediately be able to immediately hold Positions on the A330 INTL on the merged seniority roster. Their class dates will be based solely on current attrition rates or how fast the current pilot group dies off. Any delay is due to technical issues since the A330 training modules have not been released for MS Flight SIM - the company is now looking for additional training centers in India, Nicaragua, and the Philippines that utilize XBOX or ATARI technology."


Flight Attendants will be eliminated our New "A train" configuration for the "A(ir) BUS",
Aside from luxurious bench seating in Envoy Class we will begin offering offering SRO CLASS (standing room only) in economy - each will be provided with their own Imitation Leather stabilization strap.....to keep after the flight ......for an additional $15.00.

The Mesa name will be retired. And US Airways will be changing our name to "Mesa Grande by US Airways" :lol:

Just Imagine.......

One thing for sure - if it results in Jonathan Ornstein becoming a victim of the current economy by being put out on the street....It can't be too bad a scenario.

Unfortunately we already have his clones running this operation. :lol:
 
I agree...it's a Republic rummage sale buy!! Maybe the sandcastle is behind all of these Republic purchases. Didn't Republic want to use the smaller jets at Midwest..E190?? Frontier, Airbus and E-190 type A/C. Midwest moves a lot of people out of MKE and Frontier is a player at DEN...something to think about. Keep those minds wondering!! Thanks for listening...Enjoy your day...jetman out... B)
Well I'm glad somebody finally said it! Something has to be up, Republic has now purchased Midwest and Frontier (coupled with Lynx) and is beginning a codeshare with the 2, even now saying that some A319's are going to be sent to MKE (they're going to have one heck of a mix of planes flying for Midwest, E135's, 145's, 170's, 190's, and now A319's and all that for such a small airline)!!

All of this going on and meanwhile UA, US, and DL ( all of whom have pretty big contract's with Republic Airways) have not a word to say!! Just seems odd to me that now we (UA, US, DL) have this express carrier who is being paid to fly our routes with near mainline sized airplanes no less and the 3 majors have nothing to say about how they are now competing against us. Not only being contracted (and paid) to fly our routes but competing as well... just doesnt jive for some reason... AT ALL!!!
 
They announced a profit lasts quarter. That's why the stock is up. Stop this takeover speculation and read the press releases.
 
I think the silence from US, UA & DL means the answer to your question is likely no.

Bob:

You are quite right when it comes to US lift provided by Repugnant and their subsidiaries. Not too long ago, in a far away bankruptcy court, Repugnant provided financing to bring US Airways out of bankruptcy in return for a long term contract to provide US Express lift. Heck, they even took possession of 20 E170's and the MidAtlantic operating certificate as part of the deal. While there may be some boilerplate drafted at that time that addresses Repugnant directly competing with US on certain routes, I would guess it does not include any unforeseen future aquisitions that fall into the fold.

IMHO, Republic, US Airways, and Air Tran all have something up their sleeves and I think it may be to merge all 3 units into Republic while retaining the US Airways name and operating it as a subsidiary of Republic Air Holdings. Just a WAG, but there is a lot of positioning going on in LGA and DCA as of late, and it would make sense, particularly if Air Tran is looking for a way to reduce their exposure (cash bleed) to a newly revitalized NorDelt in Atlanta (CLT/DCA would pretty much rival ATL in size and scope).

As to the topic at hand, US needs to just hold the line on Mesa because they will find a way to go out of business all by themselves giving US relief on their Mesa Express contracts.
 
They announced a profit lasts quarter. That's why the stock is up. Stop this takeover speculation and read the press releases.


You could not be more wrong. Their profit was a one-time item.
Their outlook was extremely negative and pessimistic.
The earnings came out Tuesday morning. This run up and huge volume did not start until Thursday afternoon!

Maybe you should read a bit more before criticizing others!
:down:
 
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