Purpleanga

This is just pointless arguing becuase it doesn't matter who's case it is Friday but tell me. How did Delta conspire to mess with Mesa's completion factor in 07/08 and then when the bottom fell in 08 they decided to use that to fire Mesa. Are you saying that Delta had powers to see the future that in 08 and 09 they're going to have to reduce capacity??? The fact is that Mesa is one of the worst airlines that I have seen as far as Xlleations and completion factors. UA,Airways, you name it. This is just legal BS where the Mesa lawyers have obviously gotten very good practice from the other dozens of legal actions taken towards this airline. Good luck guys. Either way Mesa will not liquidate because of losing this flying unless they really have no money stashed away.

DENpilot

No, I'm not saying DL conspired and purposely canceled flights to do this. They did that anyway to get their planes out. However, when cap needed to be reduced, this was a way of doing it.

Purpleanga

The fact that an airline wants to get rid of a whole regional, not just one or two airplanes, not even a dozen but ALL of the 34 ERJs and the however many CRJ900 and actually give those to someone else, there is obviously a problem.

Cactusone

Here's the synopsis from Mesa's perspective:


On March 28, 2008, Delta notified us of its intent to terminate the Amended DCA among Delta, the Company, and the Company's wholly-owned subsidiary, Freedom Airlines alleging failure to maintain a specified completion rate with respect to its ERJ-145 Delta Connection flights during three months of the six-month period ended February 2008. The Amended DCA includes, among other arrangements, our agreement to operate up to 34 model ERJ-145 regional jets leased by us and operated utilizing Delta's name. During the second quarter 2007, we reached an agreement with Delta to add six ERJ aircraft for an initial term of two years. These aircraft are scheduled to be removed in March 2009. The parties currently have a disagreement regarding the effectiveness of a notice issued by Mesa to extend the terms of these aircraft for an additional one year term at reduced compensation in accordance with the terms of the amendment. Failure to resolve this issue in the Company's favor could have a material adverse impact on our financial condition or results of operation.

In fiscal 2008, the Amended DCA accounted for approximately 15.0% of our total revenues for fiscal 2008. Delta seeks to terminate the Amended DCA as a result of Freedom Airlines' alleged failure to maintain a specified completion rate with respect to its ERJ-145 Delta Connection flights prior to April 2008.

On April 7, 2008, we filed a complaint against Delta seeking declaratory and injunctive relief and specific performance by Delta of its obligations under the Amended DCA. On May 9, 2008, we filed a motion for a preliminary injunction in the United States District Court for the Northern District of Georgia (the "District Court") against Delta to enjoin its attempted termination of the Amended DCA. A three day evidentiary hearing was concluded on May 29, 2008 with the District Court ruling in our favor and issuing a preliminary injunction against Delta. The preliminary injunction prohibits Delta from terminating the Amended DCA based on Freedom Airlines' completion rate prior to April 2008, pending a final trial at a date to be determined by the District Court.

The effect of this ruling is to prohibit Delta from terminating the Amended DCA covering the ERJ-145 aircraft operated by Freedom Airlines, based on Freedom Airlines' completion rate prior to April 2008, pending a final trial at a date to be determined by the District Court.

On June 27, 2008, Delta filed a notice of appeal with the 11 th Circuit Court of Appeals (the "Court of Appeals") and on July 15, 2008, Delta filed a motion requesting that the appeal be heard on an expedited basis. The Company responded to Delta's motion in accordance with the applicable rules and the Court of Appeals., after reviewing the filings, denied Delta's request. Delta and the Company have fully briefed the issue on appeal and oral arguments in the 11 th Circuit Court of Appeals have been scheduled for January 30, 2009

If the District Court or Court of Appeals ultimately rules in favor of Delta and allows the termination of the Amended DCA we believe we will be unable to redeploy the ERJ-145s in a timely manner, or at the lease rates we receive under the Amended DCA in the event of any redeployment of such aircraft. In addition to losing approximately $20 million per month in revenue or approximately $960 million over the next four years), we estimate that we will incur leasing costs, labor and other costs totaling approximately $250 to $300 million over the next four years. As a result, our cash flows from operations and our available working capital will be insufficient to meet these cash requirements. In the absence of obtaining additional capital through equity or debt financings, asset sales, consensual restructuring of debt and lease terms and /or similar measure, we will be unable to meet our financial obligations and may need to seek protection under applicable United States reorganization laws in order to avoid or delay actions by our lessors, creditors and code-share partners, which will have a material adverse effect on our ability to continue as a going concern.

ToiletDuck

Ok you found it. I never did so I'll say it I was wrong in believing that DAL hadn't filed an appeal yet and was waiting till after the court hearing. Now that that's out of the way what else changes? Nothing. If for some reason you sought victory in proving DAL made the appeal already then congratulations. It's just a small blip on the radar in the grand scheme of things. I'll drink one to the demise of that place. Down with JO and down with Joe Cespedes.

ToiletDuck

If you ran an airline and had to cut regional feed where would you start? The best performing or worse performing? We'll have to wait and see but I doubt the numbers were doctored. If you're providing a good service then you're providing a good service. If you're not then you're not. If mesa has less than a 95% completion factor in any 3 of 6 months then it's bye bye.

CRJPlt

Yes, I sought victory in not only proving DAL filed an appeal and that is what the case is about, its on DAL to show the evidence against Mesa's case, but more to show that people on here don't have a flipping clue what they are talking about. Everybody comes on to this site uneducated about certain issues and spouts off out of their behind without any educated information. Please don't sit and bash another company without the correct facts...

asj410

As a member of the Aloha ohana, to answer your question, it's somewhere in the neighborhood of 700-800 of the original 1,900 employees of Aloha. I'll keep my mouth shut on my opinions of JO and Mesa...

Luv2Rotate

Down goes Mesa, down goes Mesa. DAL will retain the right to cease the contract. Oh, its pandemonium.

logic1

You havent seen ASA then have you?