https://viewfromthewing.com/rumor-me...ional-service/

 

And there goes the new pay rates with no snap back. Ch11 restructuring.

 

This forum is full of CEO’s, bankruptcy lawyers, and CPA gurus. Oh, and I forgot RLA contract lawyers for ALPA. Good to know.

 

You forgot to add historians as well. I guess you’ve never heard of bankruptcy contracts and administration.

 

Didn't Mesa just receive 50 million from United for the 700's? Not sure how much Mesa owes the bank on the 900's, but I thought they were mostly paid for.

I can't figure out the benefit of bankruptcy for Mesa...

 

The benefit is to get out of the AA flying and rip up the the contract to their benefit.

 

Bankruptcy courts extremely rarely let management groups abrogate contracts and impose arbitrary pay rates. Mesa tried in our Bankruptcy in 2010 and the court said no. Mesa even tried to claim Force Majeure and it didn’t work. There has only been one airline contract abrogated in bankruptcy in the last 30+ years (AA in 2012) and in that time very few present carriers didn’t file…some more than once.

 

This is a internet hack. He’s a travel blogger. He’s not a airline financial analyst or even a industry insider. Just a guy throwing something against the wall to see if it will stick. None of the financial media have said anything about Mesa since this hack piece came out.

No credible industry/financial analyst would call bankruptcy Chapter 22 as a joke because it was the second time in Chapter 11 for a carrier. He obviously forgot (more likely never knew) US Air/ways filed twice. Bankruptcy isn’t a joke and should never be alluded to as such. Just another internet troll looking for 15 minutes of fame. Consider the source before you make foolish statements about Mesa’s financial health.

 

You can find out for sure at sec.edgar/gov and do a search of company filings for Mesa. This is the database of all US public companies filings with the SEC. Mesa disclosed on Oct 5, 2022 in an 8K filing the following:



Item 1.01. Entry into a Material Definitive Agreement.



On September 27, 2022, Mesa Air Group, Inc. (the “Company”), its wholly owned subsidiary, Mesa Airlines (“Mesa”), and United Airlines, Inc. (“United”) entered into an Aircraft Purchase Agreement (the “Purchase Agreement”), which provides for the sale of 18 CRJ-700 aircraft owned by Mesa to United. The Company expects the net proceeds from the sale of such aircraft will be approximately $50,000,000.



The Purchase Agreement provides that each aircraft will be delivered “as is, where is” subject to and with the benefit of a related lease agreement. Under the terms of the Purchase Agreement, the Company is providing customary representations and warranties for a transaction of this type including authorization, no conflicts, validity of agreement, regulatory matters, good and marketable title, airworthiness, no liens, aircraft records, manufacturer warranties, and no brokers’ fees. United has agreed to deposit a specified sum per aircraft with FAA counsel, to be applied toward the purchase of each aircraft. The closing of the sale of each aircraft is subject to certain customary closing conditions, including the execution of mutually acceptable sale and lease assignment and assumption documentation, and United’s satisfactory inspection of the aircraft. The Purchase Agreement provides for a downward adjustment in the purchase price based on a formula set forth therein if the closing date in respect of an aircraft occurs after January 31, 2023.

The foregoing descriptions of the Purchase Agreement and the transactions contemplated thereby do not purport to be complete and are qualified in their entirety by reference to the full text of the Purchase Agreement, which will be filed as an exhibit to the Company’s Form 10-K for the fiscal year ended September 30, 2022.

 

If your 700 million in debt and not making a profit, then your company is likely heading to bankruptcy. You don’t need to be an accountant to figure that out.


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