Originally Posted by
seafeye
What i can see happening is that the companies (GE, Bombardier, Emb)that own the CRJ's/ERJ's are going to be forced to renegotiate the leases at a reduced rate. This is bad news for everyone because it will allow Mesa management to once again undercut everyone else. What does this mean to a non-mesa pilot? Where do you think your managment is going to look when they need to cut costs and match Mesa?
Chapter 11 will help Mesa lower their costs and make everyone else more expensive.
Does GE, Bombardier, Emb have to renegotiate? No, but really what choice will they have. Get some payment for the 50 seaters or no payment at all. I don't expect Mesa to shrink its size to levels that others say only because the 50 seaters aren't going anywhere.
What we can hope for is that the creditors have other takers for the airplanes and force Mesa into Chapter 7. But I don't see that happening.
No major wants those 50-seaters (especially if they are operated by mesa). Even if mesa gets a significant reduction in lease payments, where are they going to get the income? DL and UA have already terminated their 50 seat flying, there's only a handful left at US.
If the same people also hold the 900 and 700 leases, they would probably prefer to kill mesa and get their big RJ's back...those still have market value.