Mesa Rumors
08-31-2009 | 06:20 AM
#52
Prime Minister/Moderator
Joined: Jan 2006
Posts: 45,233
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From: Engines Turn or People Swim
Yeah,that is true. In that case it would be more of a grey area. DAL will say that MAG had enough airplanes but did not maintain them properly (almost certainly true from my personal experience). MAG would argue the opposite, but I don't think they would win...they are a long-time 900 operator, they should know how many airplanes they need to do X amount of flying, they should not have taken a contract that did not include enough airframes.
08-31-2009 | 01:06 PM
#56
Gets Weekends Off
Joined: Apr 2007
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From: NOYDB
Seems like Delta offered to buy out Freedom's contract in April 08 before they sent out the cancellation notice. I guess they either didn't offer enough or JO gave the finger to RA and Delta as his answer.
08-31-2009 | 03:19 PM
#57
On Reserve
Joined: Aug 2008
Posts: 93
Likes: 3
From: MD-80 FO
Media reports outline Delta's disappointment with Mesa
--------------------------------------------------------------------------
August 31, 2009
Several media outlets are covering Delta’s lawsuit filed recently to discontinue its relationship with Delta Connection carrier Mesa Air Group and subsidiary Freedom Airlines.
The Associated Press, the Minneapolis Star-Tribune, the Atlanta Journal-Constitution and the Atlanta Business Chronicle all ran stories that outlined the dispute.
The Associated Press reported that Mesa Air Group Inc. said Friday it will fight Delta’s plan to end the contract. Delta filed suit Aug. 19, claiming Freedom breached the contract.
“After months of working in good faith to try to resolve a contractual billing dispute with Mesa, we unfortunately have been left with no choice but to ask a court to resolve Mesa’s refusal to honor its contract pricing guarantees,” said Delta spokeswoman Kristin Baur. “We expect Mesa and Freedom to keep their promises to Delta and our customers, and so far, they have refused to do so.”
This press release may add fuel to the rumor fire.
--------------------------------------------------------------------------
August 31, 2009
Several media outlets are covering Delta’s lawsuit filed recently to discontinue its relationship with Delta Connection carrier Mesa Air Group and subsidiary Freedom Airlines.
The Associated Press, the Minneapolis Star-Tribune, the Atlanta Journal-Constitution and the Atlanta Business Chronicle all ran stories that outlined the dispute.
The Associated Press reported that Mesa Air Group Inc. said Friday it will fight Delta’s plan to end the contract. Delta filed suit Aug. 19, claiming Freedom breached the contract.
“After months of working in good faith to try to resolve a contractual billing dispute with Mesa, we unfortunately have been left with no choice but to ask a court to resolve Mesa’s refusal to honor its contract pricing guarantees,” said Delta spokeswoman Kristin Baur. “We expect Mesa and Freedom to keep their promises to Delta and our customers, and so far, they have refused to do so.”
This press release may add fuel to the rumor fire.
09-01-2009 | 12:49 AM
#58
Gets Weekends Off
Joined: Feb 2009
Posts: 208
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Yeah,that is true. In that case it would be more of a grey area. DAL will say that MAG had enough airplanes but did not maintain them properly (almost certainly true from my personal experience). MAG would argue the opposite, but I don't think they would win...they are a long-time 900 operator, they should know how many airplanes they need to do X amount of flying, they should not have taken a contract that did not include enough airframes.
09-01-2009 | 02:40 PM
#59
Gets Weekends Off
Joined: Sep 2008
Posts: 180
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From: CRJ CA
Someone upthread commented that Delta wanted a "seamless" product vis-a-vis Freedom/DCI carriers. Uh-huh. I flew a 900 to ORD one night, and when we got to the Lima Gates, we asked if we could have the jetway instead of a remote gate since it was raining and we were the last flight of the night. I was told in no uncertain terms by the ops person on the radio that the jetway was for Mainline aircraft (b.s.) not us. We used that jetway at L10 about 1/3 to 1/2 of the times we were there, so I'm not sure what the fool was talking about, but the customers on the plane were wet Delta customers, who didn't care about his peculiar view of mainline v. DCI arrivals they were just wet.
09-02-2009 | 01:37 PM
#60
Che Guevara
Joined: Aug 2005
Posts: 6,408
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Just read this today. Did the case not already go to trial? I thought they won the injunction in march or something like that and recently won the trial.
Delta Air Lines Inc. has filed a new lawsuit in its continued attempt to break a contract with Delta Connection partner Mesa Air Group Inc.
Mesa, parent of Connection carrier Freedom Airlines, said Friday that Delta filed suit in federal court seeking declaratory judgment to terminate the contract based on “material breach by Freedom,” according to a Securities and Exchange Commission filing.
Over the past 18 months, Delta has had a series of disputes with other Delta Connection partners, some of which have been resolved.
The suit, filed Aug. 19, is the latest salvo in a contractual battle between Delta and Mesa.
“After months of working in good faith to try to resolve a contractual billing dispute with Mesa, we unfortunately have been left with no choice but to ask a court to resolve Mesa’s refusal to honor its contract pricing guarantees," Delta spokeswoman Kristin Baur said in a e-mail. " We expect Mesa and Freedom to keep their promises to Delta and our customers, and so far, they have refused to do so.”
In April 2008, after Delta tried to buy Mesa out of its contract, and Mesa declined, Delta sent a letter to Mesa terminating the contract saying Mesa’s percentage of flight cancellations exceeded contractual limits, counting so-called coordinated cancellations, according to court documents. Mesa won a preliminary injunction to stop Delta from cutting ties, and the U.S. Court of Appeals for the 11th Circuit affirmed a preliminary injunction last month.
The case is expected to go to trial later this year.
Mesa has said it will be forced into bankruptcy if Delta is allowed to revoke the contract.
Airline analysts have said Delta, especially since its merger last year with Northwest Airlines, has agreements with contract carriers to fly too many regional jets. Regional jets are typically cost effective at oil prices below $50 per barrel.
In the run up of fuel prices in early- to mid- 2008, Delta started exploring its options to reduce its number of contract carriers. Delta tried to terminate contracts with Mesa Air Group and Pinnacle Airlines Inc last year. Delta and ExpressJet Holdings Inc. mutually ended their contract in 2008.
“The alleged material breach relates to Delta's efforts to impose certain cost reductions on Freedom,” Phoenix, Ariz.-based Mesa said in its Friday SEC filing. “Freedom believes that Delta's claims are wholly without merit and are a direct effort by Delta to circumvent the injunction prohibiting Delta from terminating Freedom's Connection Agreement, which was recently upheld by the 11th Circuit Court of Appeals.”
Mesa, parent of Connection carrier Freedom Airlines, said Friday that Delta filed suit in federal court seeking declaratory judgment to terminate the contract based on “material breach by Freedom,” according to a Securities and Exchange Commission filing.
Over the past 18 months, Delta has had a series of disputes with other Delta Connection partners, some of which have been resolved.
The suit, filed Aug. 19, is the latest salvo in a contractual battle between Delta and Mesa.
“After months of working in good faith to try to resolve a contractual billing dispute with Mesa, we unfortunately have been left with no choice but to ask a court to resolve Mesa’s refusal to honor its contract pricing guarantees," Delta spokeswoman Kristin Baur said in a e-mail. " We expect Mesa and Freedom to keep their promises to Delta and our customers, and so far, they have refused to do so.”
In April 2008, after Delta tried to buy Mesa out of its contract, and Mesa declined, Delta sent a letter to Mesa terminating the contract saying Mesa’s percentage of flight cancellations exceeded contractual limits, counting so-called coordinated cancellations, according to court documents. Mesa won a preliminary injunction to stop Delta from cutting ties, and the U.S. Court of Appeals for the 11th Circuit affirmed a preliminary injunction last month.
The case is expected to go to trial later this year.
Mesa has said it will be forced into bankruptcy if Delta is allowed to revoke the contract.
Airline analysts have said Delta, especially since its merger last year with Northwest Airlines, has agreements with contract carriers to fly too many regional jets. Regional jets are typically cost effective at oil prices below $50 per barrel.
In the run up of fuel prices in early- to mid- 2008, Delta started exploring its options to reduce its number of contract carriers. Delta tried to terminate contracts with Mesa Air Group and Pinnacle Airlines Inc last year. Delta and ExpressJet Holdings Inc. mutually ended their contract in 2008.
“The alleged material breach relates to Delta's efforts to impose certain cost reductions on Freedom,” Phoenix, Ariz.-based Mesa said in its Friday SEC filing. “Freedom believes that Delta's claims are wholly without merit and are a direct effort by Delta to circumvent the injunction prohibiting Delta from terminating Freedom's Connection Agreement, which was recently upheld by the 11th Circuit Court of Appeals.”
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