Via company email, today:

 

Court Approves Mesa Air Group’s Plan of Reorganization Airline Set To Emerge From Chapter 11 A Strong, Competitive AirlineJanuary 20, 2011

PHOENIX – The U.S. Bankruptcy Court for the Southern District of New York today approved Mesa Air Group’s Plan of Reorganization, clearing the way for the airline’s emergence from Chapter 11.

“This is an exciting day for everyone at Mesa.” said Jonathan Ornstein, Mesa’s Chairman and Chief Executive Officer. “Achieving a turnaround of this magnitude in little more than 12 months would not have been possible without the hard work and dedication of Mesa’s employees and the focused execution of Mesa’s Plan of Reorganization by our management team led by Michael Lotz, President and Chief Financial Officer and Brian Gillman, the Company’s Executive Vice President and General Counsel. I’d also like to thank Paul Foley, our Chief Operating Officer, David Butler, our Senior VP of Human Resources and Gary Appling, our Senior VP of Maintenance & Engineering for their efforts on our underlying business during the restructuring.

We would also like to thank our restructuring advisors Pachulski Stang Ziehl & Jones LLP and Imperial Capital, and the others that have helped make this possible, including the support of our airline partners, customers and the communities we serve.”

Following a successful and efficient 12-month restructuring, Mesa restructured its operations and is set to emerge as a leading regional air carrier flying primarily larger 70 and 86 seat regional jet aircraft. Mesa’s creditors overwhelmingly supported the Plan of Reorganization, which also applies to the eleven wholly owned subsidiaries of Mesa that filed for Chapter 11 protection. Mesa and each of its subsidiaries are expected to emerge from Chapter 11 in February 2011.

Among the company’s restructuring accomplishments, Mesa:
Extended the term of is code-share agreement with US Airways, Inc. through September 2015;
Eliminated over 100 unnecessary aircraft leases and financings that contributed to the deleveraging of Mesa’s balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt;
Restructured aircraft leases and financings for Mesa’s fleet of CRJ 200 and Dash 8 aircraft resulting in flexibility and no long term lease exposure on the CRJ 200 50-seat regional jet aircraft;
Mesa will emerge as a private company and issue new notes, common stock, and warrants to its creditors.
“Mesa is now poised to enter its next chapter as a strong airline ready to compete in an ever changing industry. We are particularly proud of the fact that during our restructuring, Mesa achieved – and has consistently maintained – regional airline leading operational performance as reported by the U.S. Dept. of Transportation, including Mesa achieving the highest monthly On Time Performance of all regional airlines since May 2010. This strong operational performance is a tribute to the hard work and dedication of all of our employees and came during a time when many of our employees contributed to our financial savings through the taking of additional unpaid days off. This level of dedication and associated strong operational performance has provided a strong foundation upon which to return our airline to sustained profitability and future growth,” concluded Ornstein.

Mesa currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982.

 

Yeah, nowhere does JO mention that he managed this minor miracle on the backs of close to 500 furloughed pilots whose unemployment is running out while the "management" group all collect a fat bonus for leading the company into bankruptcy.

Class act all the way around.

 

Well, I guess J.O will still around the company. He problably have a pact with the devil or something.

 

IMHO they will become the new lean hungry "shark" in the regional pool, flush with investors cash and looking to gobble up other regionals so they can compete with the new Pinacle / Mesaba and / or Skywest.

Comair beware.

 

Fixed it for you

 

Are you hinting that Mesa may attempt to acquire Comair? Is that why RG went to Comair?

 

"GREED IS GOOD" JO owns an airline consulting firm for Mesa Airlines, which Mesa paid millions last year alone for their business. In bankruptcy court the judge asked JO how this works, you sit down ask a question then run to the other side of the desk and answer your own question. Priceless, what a great way to get that bonus the investors thought you should give up.

 

Further proof that there is absolutely zero accountability in corporate America. JO ran a company into the ground through stupid business decisions and screwed over creditors, leasers, and employees. He basically got a "do-over" for his mistakes and will get a fat bonus check as a result. People like him and the clowns at AIG should be put in jail for such gross incompetence. How else are we ever going to get through to these CEOs?

 

Could be. It wouldn't matter if they actually did, only if it is plausible enough to frighten Eagle ALPA into concessions.