What does the MESA deal mean to ExpressJet
12-03-2019, 05:25 AM
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What does the MESA deal mean to ExpressJet
So I read the press release below from Mesa about their new deal with United along with the addition of 20 new 175s that Mesa is buying. The question is, whats the guess on how United is going to deploy the 20 new 175s plus the 19 options that they ordered this summer? Where else can they pull flying from to make room for those 175s. I assumed and still believe that ExpressJet will get those airplanes but at whos cost?
PHOENIX, Dec. 03, 2019 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) announced today it will add 20 new Embraer E175 LL aircraft to its United Express fleet. The aircraft will be owned and financed by Mesa and be covered under a 12-year capacity purchase agreement. The E175 LL features 70 seats in a three-class configuration. Deliveries are scheduled to begin May 2020 and expected to be completed by the end of 2020.
The parties are also extending the contract for 42 E175s for an additional five years. The aircraft, which are owned by United, are now contracted through the end of 2024 with rights to extend through 2027. The 18 Mesa-owned E175s are contracted through 2028.
“We are pleased to increase the number of Embraer aircraft operating under our partnership with United to 80, making Mesa the largest E175 operator under the United Express banner,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “We are delighted that United has chosen to make us its fastest growing and largest operator of its premier regional jet. We would like to thank all of our hard working and dedicated people for making Mesa United’s airline of choice for regional growth.”
The transaction will result in Mesa’s United Express operation becoming all Embraer 175 aircraft with long-term contracts and, following the new deliveries, an average age of 3.7 years. The company also expects the shift to a single fleet type to improve utilization of crew and maintenance resources across its United Express system.
“We look forward to strengthening our partnership with United through this new long-term contract,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Mesa has been flying Embraer aircraft for nearly 30 years and we expect this transition to have a positive impact on our United Express operation.”
In connection with the deal, Mesa’s 20 Bombardier CRJ-700 aircraft will be leased to another United Express carrier for a term of seven years.
PHOENIX, Dec. 03, 2019 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) announced today it will add 20 new Embraer E175 LL aircraft to its United Express fleet. The aircraft will be owned and financed by Mesa and be covered under a 12-year capacity purchase agreement. The E175 LL features 70 seats in a three-class configuration. Deliveries are scheduled to begin May 2020 and expected to be completed by the end of 2020.
The parties are also extending the contract for 42 E175s for an additional five years. The aircraft, which are owned by United, are now contracted through the end of 2024 with rights to extend through 2027. The 18 Mesa-owned E175s are contracted through 2028.
“We are pleased to increase the number of Embraer aircraft operating under our partnership with United to 80, making Mesa the largest E175 operator under the United Express banner,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “We are delighted that United has chosen to make us its fastest growing and largest operator of its premier regional jet. We would like to thank all of our hard working and dedicated people for making Mesa United’s airline of choice for regional growth.”
The transaction will result in Mesa’s United Express operation becoming all Embraer 175 aircraft with long-term contracts and, following the new deliveries, an average age of 3.7 years. The company also expects the shift to a single fleet type to improve utilization of crew and maintenance resources across its United Express system.
“We look forward to strengthening our partnership with United through this new long-term contract,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Mesa has been flying Embraer aircraft for nearly 30 years and we expect this transition to have a positive impact on our United Express operation.”
In connection with the deal, Mesa’s 20 Bombardier CRJ-700 aircraft will be leased to another United Express carrier for a term of seven years.
12-03-2019, 06:47 AM
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The 700s we fly for united in IAD are being replaced with the new 175 LL jets. Mesa is buying them and will own them. No cost to United and I think that’s the key here. Mesa is also leading out the 700s (presumably to GoJet as 550s) for 7 years. Mesa pilots on the 700 in IAD will transition to the Ejet If they desire.
Originally Posted by Rotor2prop
So I read the press release below from Mesa about their new deal with United along with the addition of 20 new 175s that Mesa is buying. The question is, whats the guess on how United is going to deploy the 20 new 175s plus the 19 options that they ordered this summer? Where else can they pull flying from to make room for those 175s. I assumed and still believe that ExpressJet will get those airplanes but at whos cost?
PHOENIX, Dec. 03, 2019 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) announced today it will add 20 new Embraer E175 LL aircraft to its United Express fleet. The aircraft will be owned and financed by Mesa and be covered under a 12-year capacity purchase agreement. The E175 LL features 70 seats in a three-class configuration. Deliveries are scheduled to begin May 2020 and expected to be completed by the end of 2020.
The parties are also extending the contract for 42 E175s for an additional five years. The aircraft, which are owned by United, are now contracted through the end of 2024 with rights to extend through 2027. The 18 Mesa-owned E175s are contracted through 2028.
“We are pleased to increase the number of Embraer aircraft operating under our partnership with United to 80, making Mesa the largest E175 operator under the United Express banner,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “We are delighted that United has chosen to make us its fastest growing and largest operator of its premier regional jet. We would like to thank all of our hard working and dedicated people for making Mesa United’s airline of choice for regional growth.”
The transaction will result in Mesa’s United Express operation becoming all Embraer 175 aircraft with long-term contracts and, following the new deliveries, an average age of 3.7 years. The company also expects the shift to a single fleet type to improve utilization of crew and maintenance resources across its United Express system.
“We look forward to strengthening our partnership with United through this new long-term contract,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Mesa has been flying Embraer aircraft for nearly 30 years and we expect this transition to have a positive impact on our United Express operation.”
In connection with the deal, Mesa’s 20 Bombardier CRJ-700 aircraft will be leased to another United Express carrier for a term of seven years.
PHOENIX, Dec. 03, 2019 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) announced today it will add 20 new Embraer E175 LL aircraft to its United Express fleet. The aircraft will be owned and financed by Mesa and be covered under a 12-year capacity purchase agreement. The E175 LL features 70 seats in a three-class configuration. Deliveries are scheduled to begin May 2020 and expected to be completed by the end of 2020.
The parties are also extending the contract for 42 E175s for an additional five years. The aircraft, which are owned by United, are now contracted through the end of 2024 with rights to extend through 2027. The 18 Mesa-owned E175s are contracted through 2028.
“We are pleased to increase the number of Embraer aircraft operating under our partnership with United to 80, making Mesa the largest E175 operator under the United Express banner,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “We are delighted that United has chosen to make us its fastest growing and largest operator of its premier regional jet. We would like to thank all of our hard working and dedicated people for making Mesa United’s airline of choice for regional growth.”
The transaction will result in Mesa’s United Express operation becoming all Embraer 175 aircraft with long-term contracts and, following the new deliveries, an average age of 3.7 years. The company also expects the shift to a single fleet type to improve utilization of crew and maintenance resources across its United Express system.
“We look forward to strengthening our partnership with United through this new long-term contract,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Mesa has been flying Embraer aircraft for nearly 30 years and we expect this transition to have a positive impact on our United Express operation.”
In connection with the deal, Mesa’s 20 Bombardier CRJ-700 aircraft will be leased to another United Express carrier for a term of seven years.
12-03-2019, 06:48 AM
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Originally Posted by dera
I can't wait to hear what Melit has to say about this and his "SkyWest was promised the next 175's" mantra.
12-03-2019, 07:13 AM
#6
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Originally Posted by pangolin
Doesn’t impact. Sky west is still promised the 76 seaters if any come on board. These are 70 seaters.
"The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise."
Now an opportunity arose, and Skywest didn't get it.
12-03-2019, 07:17 AM
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Originally Posted by pangolin
The 700s we fly for united in IAD are being replaced with the new 175 LL jets. Mesa is buying them and will own them. No cost to United and I think that’s the key here. Mesa is also leading out the 700s (presumably to GoJet as 550s) for 7 years. Mesa pilots on the 700 in IAD will transition to the Ejet If they desire.
So is Mesa buying the 20 jets from the United Embraer order that was placed in June or is this a different order placed by Mesa on its own?
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12-03-2019, 07:29 AM
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Originally Posted by pangolin
The 700s we fly for united in IAD are being replaced with the new 175 LL jets. Mesa is buying them and will own them. No cost to United and I think that’s the key here. Mesa is also leading out the 700s (presumably to GoJet as 550s) for 7 years. Mesa pilots on the 700 in IAD will transition to the Ejet If they desire.
https://simpleflying.com/united-airlines-e175-order/
12-03-2019, 07:50 AM
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Originally Posted by Rotor2prop
Thats what I'm getting at, United ordered 20 with 19 options this summer. Wheres the give room to be able to deploy those aircraft after this new deal with Mesas 700s?
https://simpleflying.com/united-airlines-e175-order/
https://simpleflying.com/united-airlines-e175-order/
The only other 700s left in the United Express system are the 19 at SkyWest, so if those were turned into 550s then there would be room for another 19 E175LL aircraft.
12-03-2019, 07:54 AM
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There’s no way we could have committed to more 175s at this time without eliminating more 145s.
Our training center is running full steam ahead. They’re at capacity.
Meanwhile, our pilots continue to leave for the majors and LCCs as quickly as we hire.
Movement is really good right now, but without growth of the seniority list, it’s gonna be hard to grow the fleet without giving up on the 145s. And commutair isn’t ready to take them.
Our training center is running full steam ahead. They’re at capacity.
Meanwhile, our pilots continue to leave for the majors and LCCs as quickly as we hire.
Movement is really good right now, but without growth of the seniority list, it’s gonna be hard to grow the fleet without giving up on the 145s. And commutair isn’t ready to take them.
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