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Mesa's UAX Contract

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Old 09-27-2009 | 12:42 PM
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Originally Posted by travelnate
I don't believe the Mesa DH8 operation's costs are anywhere near that of a Q400. The Q4's acquisition costs are very high - these are $16 - $18 million dollar birds, whereas the YV Dash 8 Q200s are worth $7 million new.

As I understand it, the Dash 8 fleet is at a solid 12 - and there aren't any other planes that can effective service the PHX and DEN markets better.

I believe Commutair may be the only suitable option - and they're flying the "old" Horizon Q200s for Continental right now.
The aquisition costs are not passed to on to mainline, so it doesn't factor in. The Dash-8 is a maintenace hog and it's most of it's parts and components do not share commonality the Q. Dash parts are a pain in the butt to get except for the nuts and bolts type parts. I managed MAG's DASH and CRJ spares inventory. DASH mx is pretty costly and per the contracts, mx and materials costs are passed on to the mainline partner!
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Old 09-27-2009 | 01:09 PM
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Just curious because I have heard that Mesa will be furloughing a few hundred pilots, unfortunately, and I wonder if this is because they think they will lose the contract. Can Mesa hold on if they lose the UAX contract, at least the CRJ-200 part of it?
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Old 09-27-2009 | 01:22 PM
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Originally Posted by iPilot
So then Lynx would be competing against itself (Frontier vs United). I think that would be humorous to see Republic planes being used to compete with Frontier and Midwest (most likely at a deep loss) just to make them lose money on their own operation.
or united decides to get rid of the Dashes, and just works out a codeshare with RAH...screwing over the UAL pilots.
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Old 09-27-2009 | 02:19 PM
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Originally Posted by theHub
Can Mesa hold on if they lose the UAX contract, at least the CRJ-200 part of it?
It's been repeated many times that Mesa will file BK if UA cancels the contract. I'd be worried about the ERJ flying with Delta, that could really potentially end Mesa for good or at least make it into a relatively small CRj7/9 regional.
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Old 09-27-2009 | 02:27 PM
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Originally Posted by Purpleanga
It's been repeated many times that Mesa will file BK if UA cancels the contract. I'd be worried about the ERJ flying with Delta, that could really potentially end Mesa for good or at least make it into a relatively small regional.
well... they do have their Hawaii operations and did Go! in Hawaii report a profit out of all the MESA flying last quarter? So I would agree if they don't go out of business they will be a inter island airline in Hawaii.
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Old 09-27-2009 | 04:28 PM
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Originally Posted by Purpleanga
It's been repeated many times that Mesa will file BK if UA cancels the contract. I'd be worried about the ERJ flying with Delta, that could really potentially end Mesa for good or at least make it into a relatively small CRj7/9 regional.
Delta will pull that the second they file BK. If Delta had it their way the ERJ flying would have be over a long time ago.
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Old 09-27-2009 | 04:37 PM
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Correct me if I'm wrong but if UA decides not to renew, isn't Mesa left with a lot of leased airplanes with no home. This would force Mesa into BK, and leave all the contracts with other carriers up for cancellation.

Also, is JO and Mesa trying to avoid a Ch.7 BK since they have so many leased aircraft (no assets) and mounds of debt, which would not work well in a liquidation?
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Old 09-27-2009 | 04:38 PM
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Originally Posted by bradeku1008
Delta will pull that the second they file BK. If Delta had it their way the ERJ flying would have be over a long time ago.
Yep. The question is will other airlines do the same.
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Old 09-27-2009 | 04:40 PM
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Originally Posted by BSOuthisplace

Also, is JO and Mesa trying to avoid a Ch.7 BK since they have so many leased aircraft (no assets) and mounds of debt, which would not work well in a liquidation?
Exactly. This is one of the reasons why mesa has been trading below a dollar and why so many think the company is worthless. Does Mesa even have enough cash to get out of BK??
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Old 09-27-2009 | 04:43 PM
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Or mesa could offer to fly them at a loss for an extended cpa, stay in business and reorganize out of bankruptcy..... they are not dead yet and i doubt they are just going to roll over and die.
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