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Old 11-28-2008 | 07:10 PM
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The Duke
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Originally Posted by BURflyer
What? Is that why Mesa formed the BK committee when they found the ERJ flying was going to be pulled?? Delta suit has the potential to not only cripple the company but liquidate it.
I don't know much about the Delta suit, but any sort of suit on Delta's part is probably just posturing. The claim is that we didn't meet certain performance parameters set forth by Delta in codesharing contract...breach of contract, hence Delta's ability to cancel the codeshare agreement. Convenient for Delta because w/ the merger, as other threads have indicated here on APC, Delta is looking to get rid of some codeshare partners. Mesa's claim is that Delta mandated some of the cancelations and the the performance numbers re: cancelations aren't accurate.

Evidently the judge overseeing all of this felt Mesa had a "compelling" argument and granted the injunction in favor of Mesa. In other words, if heard in a court of law, Mesa's case would stand a chance. I would think a settlement may be in both parties best interest. Delta feels it doesn't need Mesa, there's no use doing business w/ someone you don't like. Fork over some settlement cash and be done w/ it. Mesa needs the money right now, we've already lost a substantial amount of flying w/ Delta...both parties walk away from the table at least somewhat satisfied.

Either way, it will be interesting to see what happens. W/ this Aloha development, I would think just about anything is possible at this point.
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