flycrj200

Either way , it’s a worthless stock of a worthless company.

DeadHead

So if DAL does lose how much longer is the contract with Mesa?
Will there be any other fiscal penalties on DAL's behalf?

ToiletDuck

Depends on how they set things up. I don't know the underlying financial situation at Mesa other than it sucks but I know companies have purchased other companies without having to handle all their debts ie Bank of America and Countrywide.

Now this could be different because they are financial institutions and them holding debt could be different than an airline holding debt being owed to a bank.

rickair7777

Special deals were made with the restructuring of the financial industry. You are right that holding debt is different from having debt yourself.

Anyone who bought mesa would acquire their debt also. It's possible that if liquidation was imminent a buyer could make a deal with the people to whom mesa owes money. Something like: "If you forgive 50% of the debt, we will buy MAG and continue to pay off the remainder. If you refuse, we will let them liquidate and you get little or nothing"

I'm not sure any other airline would WANT to buy mesa...there is a lot of baggage, including the DAL contract in jeopardy and Airways contract expiring in 2012. Probably safer to let them fail, then bid on the pieces. For example SKW has a bid on their UAL flying, and FAA approval to train their RJ pilots in a shortened differences course which just covers the differences between SKW and mesa operations.

ToiletDuck

Special deals have been made but BAC bought countrywide before this recession hit. BAC was just very smart in the way they went about it. Now their acquisition of Merrill is a different story.

ToiletDuck

If I can't get our company to make a Houston base then maybe I can get them to make a PHX one. Stay away! I'd rather see new Ejets out there over some crusty beat down CRJs anyway. I stepped in one for the first time the other day and was AMAZED at how bad they looked.

rickair7777

E-Jets are nice, and as long as fuel is cheap they are a better value for the customer. That was my only long-term concern with working for SKW...bombardier products.

ERJ Driver

The other option I heard about was that if MAG wins, JO could accept a settlement from DAL and use the money to buy a new motorcycle and whatever else...

ComairFO

I would not be surprised if Plan B for Delta is to pay Mesa to stay away. JO gets his golden parachute (his MESA stock is worth less than cow dung now), his employees get screwed, and Delta ultimately gets what they want.

ComairFO

I believe the contract runs through 2012. Not sure about fiscal penalties.