Q3 Earnings Highlights (550, AA, DHL, & more)
08-10-2020, 07:47 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Apr 2020
Posts: 220
Q3 Earnings Highlights (550, AA, DHL, & more)
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...
08-11-2020, 05:31 AM
#4
Gets Weekends Off
Joined APC: Jan 2019
Posts: 1,130
We have eliminated all those costs and operate 100% CPA. As another clear example, Mesa structured its last pilot agreement and did not, and we have not, incorporated the sign-on or retention bonuses into the pay scale as most other carriers did.
08-11-2020, 06:09 AM
#5
Gets Weekends Off
Joined APC: Sep 2019
Posts: 1,538
Originally Posted by captive apple
So essentially you already took concessions, that is a positive.
08-11-2020, 09:17 AM
#6
Porco Rosso
Joined APC: Apr 2018
Posts: 2,522
Originally Posted by Seneca Pilot
The translation to english that you can understand is all the other carriers will suffer in the next contract negotiations if this thing drags on for a while.
08-11-2020, 10:52 AM
#8
Line Holder
Joined APC: Aug 2020
Posts: 85
Originally Posted by ZR29907
Lol...
3/4 of a Billion $$ in debt..
54% of pre-COVID flying with no furloughs?
you guys sure do live in some kind of fantasyland
3/4 of a Billion $$ in debt..
54% of pre-COVID flying with no furloughs?
you guys sure do live in some kind of fantasyland
08-11-2020, 11:45 AM
#9
Gets Weekends Off
Joined APC: Jul 2017
Position: CRJ9 CA
Posts: 4,083
Small corrections: The GAAP is deferred ACCOUNTING of revenue not deferred receipt.
There's a big balloon payment due on deferred debt Sept 30. This deferral is why we have 10 million "extra" cash now.
We DID NOT take concessions - that's IF we do they can avoid furloughs.
Andy Hughs is sick - with what we do not know.
There's a big balloon payment due on deferred debt Sept 30. This deferral is why we have 10 million "extra" cash now.
We DID NOT take concessions - that's IF we do they can avoid furloughs.
Andy Hughs is sick - with what we do not know.
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...
08-11-2020, 05:04 PM
#10
Gets Weekends Off
Joined APC: Dec 2005
Position: CRJ F/O
Posts: 239
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.
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