Originally Posted by
cornerpocket
…at contracted rates Mesa couldn’t make money on.
There’s no cost efficiencies through streamlining being realized here. Republic is effectively buying Mesa and supplanting Mesa operations with Republic operations at all levels.
UAL invests heavily in both. My guess is UAL got tired of floating Mesa financially and told Mesa and Republic to “figure it out”.
Republic will probably fly Mesa’s contracts to termination and get a chance to rebid on them when they come due.
Mesa is going to get a 10 year CPA agreement with this deal supporting United flying according to the rueters article.
"Republic will continue to operate flights for American Airlines (AAL.O), opens new tab, Delta Air Lines (DAL.N), opens new tab, and United Airlines (UAL.O), opens new tab under the existing capacity purchase agreements (CPA), while Mesa will support United Airlines under a new 10-year CPA, as a result of this deal, the companies said."