Is it actually proven that DL CAN cancel Mesa's contract if they file chapter 11?

Or is it assumed..does anyone have knowledge of whether or not this is a legitimate possibility?

 

Somewhere here (or FI, I don't know) there is another thread that discussed the basis for the second lawsuit that Delta was using to get out of the Mesa/Freedom agreements. I can't find it but what I remember are three issues that Delta felt that Mesa was under performing on. First was the number of staff per aircraft. Second was spare aircraft. The third was that the ASA required a certain amount of money in the bank. With all the recent things happening at Mesa lately I would think the first two issues to Delta's suit don't exist anymore. However, if there is a cash reserve requirement in the Air Services Agreement - no one would disagree that Mesa is in real trouble.

I think Mesa is in real jeopardy to lose the Delta flying this time. And having Paul Foley involved in your company now only tells me he is there as a closer. I can't point to any positive things he did at Mesaba since I've been here, no new aircraft when all the other regionals were hiring and expanding like crazy. The stickers on crew bags said it all.

OK he did sign the MAIR letter but that can be argued that it didn't help the airline so much as our pilot group. Thanks Paul!

 

It is standard boilerplate in regional feed contracts. I'm not sure those contracts are required public disclosure items per the SEC though.

 

 

Oh man that sux. It looks like I will be joining you pilots shortly. Although I do not know when that day will happen as of yet.

 

ASA's are published in the SEC filings, some of the financial details are removed. Yes, every delta ASA with a regional has a bankruptcy opt out clause.

 

How many pilots is Mesa furloughing in December? Are there anymore scheduled in early 2010?

 

I have been told that with any bankruptcy all contracts are in jeapardy and this works both ways.

By this I mean, if you as an individual file bankruptcy... you can cancel your cell phone contract that you still have a year to go on. BUT, the cell phone company can also cancel your contract and demand that you pay in cash upfront for service (no credit).

This is also true when a company files BK. When delta filed bankruptcy years ago, everyone associated the bankruptcy with cancelled or "re-negotiated" contracts for aircraft leases, labor contracts, etc.

What was not very publicized was that Delta had some very good contracts at several outstations for fuel which the outstation FBO took the opportunity to cancel and force Delta to pay more per gallon and only on a cash basis (no credit).

If Mesa files bankruptcy, it doesn't matter what the contract says to either party. Either side can use the laws of bankruptcy to cancel the contract and (a) walk away having nothing to do with each other or (b) renegotiate a new contract.

A Mesa bancruptcy would mean mainline partners walking away from Mesa feed or negotiating a new (lower) fee for departure. Both are bad scenarious for Mesa.... but JO could concede to a lower negotiated contract and then apply for an 1113 and simply lower labor costs even deeper to balance the companies finances.

 

It was originally 24 pilots in Dec. They furloughed 58 now... and yeah, god only knows how many more in January... It's looking really ugly, I honestly don't know how the company is going to survive.. I feel for all of us that are affected, however, losing this POS company could only help the regionals in general and I pray it does and good things start to happen for this industry...

 

Does anyone know what kind of notice they need to give before they furlough you? I haven't received anything yet but after these Dec. furloughs I'm sure I'm next on the chopping block with only about 90 people below me.