Q3 Earnings Highlights (550, AA, DHL, & more)
08-11-2020, 05:59 PM
#11
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Joined APC: Jul 2017
Position: CRJ9 CA
Posts: 4,083
Originally Posted by coodrough568
Wait. So no furloughs... but taking reduction in line guarantees??? So instead of setting 2-300 birds free to go make more working at Home Depot... y’all are screwing 1300 all together? Wow.
08-11-2020, 08:16 PM
#12
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Joined APC: Apr 2020
Posts: 220
I find it interesting how little people can read and no how things work.
First off, they never said concessions will be taken but the MEC is in discussions about possible options to avoid furloughs. The majority pilots at Mesa dont want concessions.
Second, Mesa pilot don’t get a say in this. Issues like this unfortunately is determined by the MEC its spelled out in the contract that way. It doesnt come to a pilot vote. Thats why when the did it the first time back in April no one got a vote. The MEC usually will vote the way the pilots want or can be voted out during elections. But Andy and his goons are in JOs pocket.
Third, the reduced work week was in reference to office jobs like HR. It takes more then pilot to make an airlines go.
Finally, as to the moron who doesnt understand how a business works, never taken an accounting class, doesnt understand how the stock market works, and lives in his moms basement. Companies caring millions of dollars of debt is normal. It accounts for loans of planes, leases of property, and cost of materials that can be 10-20yrs long. You buy 20 new ejets and tell me how much it will cost. Secondly, I never mentioned our assets on hand, which by the way out weighs our debt, considering Mesa owns most of there aircrafts include the ones that fly for AA. So Mesa could sell, lease, or reconfigure those planes however they want if AA flying does disappear. Now to address the statements made on the call itself. Even though future statement might not follow through and there is a warning on an earning call states this, you cant purposefully give false or misleading statements. There are Multi million dollar investment firms investing in companies. If you do falsely inform them you can be sued and delisted by the exchange. So saying things like we plan to not furlough or we plan to renew our AA contract might not occur. You cant purposefully say that unless you believe it to be true. If you know that its not and say it there are repercussions..
First off, they never said concessions will be taken but the MEC is in discussions about possible options to avoid furloughs. The majority pilots at Mesa dont want concessions.
Second, Mesa pilot don’t get a say in this. Issues like this unfortunately is determined by the MEC its spelled out in the contract that way. It doesnt come to a pilot vote. Thats why when the did it the first time back in April no one got a vote. The MEC usually will vote the way the pilots want or can be voted out during elections. But Andy and his goons are in JOs pocket.
Third, the reduced work week was in reference to office jobs like HR. It takes more then pilot to make an airlines go.
Finally, as to the moron who doesnt understand how a business works, never taken an accounting class, doesnt understand how the stock market works, and lives in his moms basement. Companies caring millions of dollars of debt is normal. It accounts for loans of planes, leases of property, and cost of materials that can be 10-20yrs long. You buy 20 new ejets and tell me how much it will cost. Secondly, I never mentioned our assets on hand, which by the way out weighs our debt, considering Mesa owns most of there aircrafts include the ones that fly for AA. So Mesa could sell, lease, or reconfigure those planes however they want if AA flying does disappear. Now to address the statements made on the call itself. Even though future statement might not follow through and there is a warning on an earning call states this, you cant purposefully give false or misleading statements. There are Multi million dollar investment firms investing in companies. If you do falsely inform them you can be sued and delisted by the exchange. So saying things like we plan to not furlough or we plan to renew our AA contract might not occur. You cant purposefully say that unless you believe it to be true. If you know that its not and say it there are repercussions..
08-12-2020, 02:49 AM
#15
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Joined APC: Apr 2016
Posts: 698
Originally Posted by point80
So seeing that a lot of people want to give out misinformation and create a panic these were the notes I took away from the Earnings Call today:
- Block hours are down YoY 70%, but Mesa is expecting a 87% increase in Q4 flying Quarter over Quarter bringing us up to 54% of pre-covid flying
- There will probably be No Employee Furloughs as the MEC is negotiating reduced weeks, reduction in crew minimums, and VLOA extensions.
- The above will not be needed if Cares Act is extended
- Mesa is currently working with US Treasury for possible Care Act loan worth roughly $277 Million
- With Cares Act money Mesa will be passing on reductions and rates of weekly payments to partners until Sep 30th
- Mesa will be deferring $16million of partners payments under GAP to be paid at later dates
- Mesa removed 2 a/c from AA fleet in June, but had no effect bc they werent being flown anyways and were set to be removed in Jan 2021.
- Mesa is currently in talks with AA for contract extension and JO believes one will be done but at a smaller fleet size.
- If a deal can not be done 2 a/c will be removed per month over 23 months starting in Feb 2021
- Mesa currently has a hiring freeze but has built an application pool of 425 pilots
- During Q2 Mesa had no controllable cancellation and met all metrics for on-time departures for partners
- 20 EJETs to start deliever in Sep and continue until June 2021
- Under current CPA with UA there will be a 1 for 1 swap of EJET to 700, at which point the 700 will be leased to another UAX partner (GoJet) for 7 years.
- If UAX partner can not take delivery JO is in discussions with UA about flying 550s ourselves. Based on SkyWest earnings call saying GoJet had to return 3 leases bc of payment failure on lease, so this is a very possible scenario
- Mesa has reduced its debt QoQ by $24 million bring total debt to $764 million
-Mesa has increased its cash on hand QoQ from $52 million to $65 million
- Cargo contract with DHL start with two 737-400Fs in Sep (1 in Sep and 1 in Nov)
- On the 2 a/c Mesa will have a break even run rate, but JO would like the fleet to expand to 10 planes within 18months
- Mesa would expect future Cargo planes to be 800s
- Closing statement by JO, “We can seize opportunities in current environment”
If you have more to add please do so...
Hopefully this was helpful...
- Block hours are down YoY 70%, but Mesa is expecting a 87% increase in Q4 flying Quarter over Quarter bringing us up to 54% of pre-covid flying
- There will probably be No Employee Furloughs as the MEC is negotiating reduced weeks, reduction in crew minimums, and VLOA extensions.
- The above will not be needed if Cares Act is extended
- Mesa is currently working with US Treasury for possible Care Act loan worth roughly $277 Million
- With Cares Act money Mesa will be passing on reductions and rates of weekly payments to partners until Sep 30th
- Mesa will be deferring $16million of partners payments under GAP to be paid at later dates
- Mesa removed 2 a/c from AA fleet in June, but had no effect bc they werent being flown anyways and were set to be removed in Jan 2021.
- Mesa is currently in talks with AA for contract extension and JO believes one will be done but at a smaller fleet size.
- If a deal can not be done 2 a/c will be removed per month over 23 months starting in Feb 2021
- Mesa currently has a hiring freeze but has built an application pool of 425 pilots
- During Q2 Mesa had no controllable cancellation and met all metrics for on-time departures for partners
- 20 EJETs to start deliever in Sep and continue until June 2021
- Under current CPA with UA there will be a 1 for 1 swap of EJET to 700, at which point the 700 will be leased to another UAX partner (GoJet) for 7 years.
- If UAX partner can not take delivery JO is in discussions with UA about flying 550s ourselves. Based on SkyWest earnings call saying GoJet had to return 3 leases bc of payment failure on lease, so this is a very possible scenario
- Mesa has reduced its debt QoQ by $24 million bring total debt to $764 million
-Mesa has increased its cash on hand QoQ from $52 million to $65 million
- Cargo contract with DHL start with two 737-400Fs in Sep (1 in Sep and 1 in Nov)
- On the 2 a/c Mesa will have a break even run rate, but JO would like the fleet to expand to 10 planes within 18months
- Mesa would expect future Cargo planes to be 800s
- Closing statement by JO, “We can seize opportunities in current environment”
If you have more to add please do so...
Hopefully this was helpful...
-400’s. Those MX costs will eat you alive. Southern / AAWW dumped them and DHL found a Seagull to pick up the crumbs. Good luck. What happens post COVID ? DHL is a demanding company and has no problem handing out massive fines for not moving the jet.
08-12-2020, 05:43 AM
#16
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Joined APC: Apr 2020
Posts: 220
Originally Posted by OnFingers12345
Do you even read your own writing?
08-12-2020, 09:19 AM
#17
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Joined APC: Jan 2019
Posts: 105
Originally Posted by point80
Haha... I just realized some of my grammatical errors from the post yesterday. Thats what I get for talking ****. I was in a rush and didnt proof read. I love the fact i used the wrong “know” in the first sentence. Dont let me live that one down. (palm => face)
08-12-2020, 02:06 PM
#18
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Joined APC: Feb 2019
Posts: 121
Originally Posted by boeingdvr
AA flying is done. Nothing convincing from MGMT to keep them.
-400’s. Those MX costs will eat you alive. Southern / AAWW dumped them and DHL found a Seagull to pick up the crumbs. Good luck. What happens post COVID ? DHL is a demanding company and has no problem handing out massive fines for not moving the jet.
-400’s. Those MX costs will eat you alive. Southern / AAWW dumped them and DHL found a Seagull to pick up the crumbs. Good luck. What happens post COVID ? DHL is a demanding company and has no problem handing out massive fines for not moving the jet.
Mesa isn’t maintaining the 734, so take some more uneducated shots at Mesa as a company, the pilot group or us as individual pilots. When people hate you this much you know you’re doing something right. See you on the other side of the virus and if Mesa doesn’t come out better than most I’ll be the first to eat your bird strike. And for the love of God do we have to call ourselves “drivers?” So embarrassing...
08-12-2020, 04:49 PM
#19
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Joined APC: Apr 2016
Posts: 698
Yes!
Originally Posted by normalperson
AA flying isn’t done.
Mesa isn’t maintaining the 734, so take some more uneducated shots at Mesa as a company, the pilot group or us as individual pilots. When people hate you this much you know you’re doing something right. See you on the other side of the virus and if Mesa doesn’t come out better than most I’ll be the first to eat your bird strike. And for the love of God do we have to call ourselves “drivers?” So embarrassing...
Mesa isn’t maintaining the 734, so take some more uneducated shots at Mesa as a company, the pilot group or us as individual pilots. When people hate you this much you know you’re doing something right. See you on the other side of the virus and if Mesa doesn’t come out better than most I’ll be the first to eat your bird strike. And for the love of God do we have to call ourselves “drivers?” So embarrassing...
Who said anything about hate ?
Last edited by boeingdvr; 08-12-2020 at 04:50 PM. Reason: .
08-12-2020, 04:55 PM
#20
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Joined APC: Apr 2016
Posts: 698
Yeah. No, if -- assuming that we take delivery of the 175, which we fully intend on doing at this point, to operate those aircraft, they would have to be operated as 50-seat aircraft under United current scope agreement with their pilots.
Michael Lindenberg -- Deutsche Bank -- Analyst
Okay. Okay, that's great. And then just lastly, when we think about how you're going to account for the DHL business, I think Jonathan, did you say you cover crews and do you think maintenance, did I hear that right, maintenance on 737s and then DHL picks up the aircraft fuel and the cargo revenues?
Jonathan G. Ornstein -- Chairman and Chief Executive Officer
That's correct. It's just a crew and maintenance, CMI, crew, maintenance and insurance contract.
Michael Lindenberg -- Deutsche Bank -- Analyst
I see. So, then does that -- like how do you -- OK, so you have some sort of revenue that offsets that. I don't know if it's going to be, it's going to be -- I don't know, maybe you're going to call it CPA revenue, but it will be tied to DHL. Maybe, it's all in a single line item.
Michael Lindenberg -- Deutsche Bank -- Analyst
Okay. Okay, that's great. And then just lastly, when we think about how you're going to account for the DHL business, I think Jonathan, did you say you cover crews and do you think maintenance, did I hear that right, maintenance on 737s and then DHL picks up the aircraft fuel and the cargo revenues?
Jonathan G. Ornstein -- Chairman and Chief Executive Officer
That's correct. It's just a crew and maintenance, CMI, crew, maintenance and insurance contract.
Michael Lindenberg -- Deutsche Bank -- Analyst
I see. So, then does that -- like how do you -- OK, so you have some sort of revenue that offsets that. I don't know if it's going to be, it's going to be -- I don't know, maybe you're going to call it CPA revenue, but it will be tied to DHL. Maybe, it's all in a single line item.
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