Originally Posted by
Fly IFR
Take what SkyWest did with US Airways for example, they are operating at a loss of somewhere in the neighborhood of $60,000 a plane because of the money they have in the bank, just to get their foot in the door with US Airways. How in the world do you undercut Mesa, that's quite an accomplishment and a possible new low...
The only source for that statement is Jonathan Ornstein himself in his memo to employees deflecting blame for Mesa's poor performance to everyone but himself. SKYW currently has 704.7 MILLION in Cash and short-term investments on hand, which they certainly DID NOT accumulate by operating aircraft at a loss.
https://www.google.com/finance?q=NASDAQ:SKYW&fstype=ii#
A statement probably closer to the truth is that MESA would be losing 60k per A/C if they were to sign a contract at those rates because of his horribly mismanaged opertation (as is evidenced by the recent trip through the BK process).
BTW, why is JO still running MESA? So much for the best & brightest making their way to the top.
