Originally Posted by
afterburn81
Yeah yeah yeah. I think you may be surprised one day that......well you’ll see.
Just curious. How much do you think Mesa is bleeding (just like every other airline) each day?
Im not saying Mesa isn't hurting like everyone else. Of course they are. But we have all seen a rise in pax over the last week. Based on projections travel should be back up 60-70% by year end. At those numbers most regionals will survive (might be a little smaller, though). CEOs dont make decisions based on today. They look 6 months down the road.
You have to realize that those 20 Ejets are replacing the crj700 fleet in Dulles. Those planes are scheduled to be leased to GoJet and converted to 550s. If Mesa doesnt take those planes then they cant lease them to GoJet to turn a profit and GoJet cant meet contract obligations to United. Also when United made the deal with Mesa to purchase them instead of UA there was a capacity clause requiring them to be used extensively in return.
Im not saying XJT will go under bc I do think they serve a niche with the 50 seaters and will be taking business from Air Wisconsin in ORD as the 200s are phased out.
I do however feel XJT will be hurting if they cant convince their shareholders to give up equity and take a loan (roughly $40 million) from the government for the Cares Act. Problem is how do you justify that for a company that has no assets, flying an airframe that UA already said they want to remove, and was purchased for only $60 million? XJT will survive but I expect they wont get government aid and will be much smaller.