Mesa Air Group Chapter 11 Info
05-18-2010 | 06:33 AM
#801
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The Judge reversed himself. Earlier he had stated Delta was in breach of an oral contract and that Delta was not credible. Then he ultimately decided that Delta could escape a contract, due at least in part, due to flight cancellations which Delta itself had requested.
Of course written contracts rule the day, but when the former COO comes in an testifies to a verbal modification, his story matches the allegations and Delta confesses to really sloppy management (creating an estoppel issue) I figured for sure Mesa had their case won.
Overall, only a small minority of plaintiffs ever win in Court. (Hence my excellent record) The Courts like the parties to work out their problems without intervention. The TRO gave Delta and Mesa time to work out their differences, but those differences turned out to be irreconcilable. IMHO, it first looked like an abusive husband, but then it turned out the wife was cheating on her billing to the tune of at least the 3 million. Divorce granted, Plaintiff, pay back the money you stole.
Of course written contracts rule the day, but when the former COO comes in an testifies to a verbal modification, his story matches the allegations and Delta confesses to really sloppy management (creating an estoppel issue) I figured for sure Mesa had their case won.
Overall, only a small minority of plaintiffs ever win in Court. (Hence my excellent record) The Courts like the parties to work out their problems without intervention. The TRO gave Delta and Mesa time to work out their differences, but those differences turned out to be irreconcilable. IMHO, it first looked like an abusive husband, but then it turned out the wife was cheating on her billing to the tune of at least the 3 million. Divorce granted, Plaintiff, pay back the money you stole.
I am gathering from your post that the Judge was angry that Mesa was overbilling (criminal) and threw out the injunction which effectively makes the appeal to be heard in July a moot point. Had Mesa not acted in this way it would have proceeded to trial. Is that about right?
05-18-2010 | 06:34 AM
#802
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There have been rumors at ASA for months of SkyWest having already made a backroom agreement with Mesa to purchase their assets. Something tells me that this ruling was not unexpected. I agree with whoever said that JO may be using this as an easy out. JO will liquidate and ride off into the sunset still a rich man. A thousand pilots will lose their jobs, or at least their seniority. Delta is emboldened to beat up the remaining regionals working for them. Bottom line: the workers are the only losers here, as usual.
05-18-2010 | 06:44 AM
#803
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
There have been rumors at ASA for months of SkyWest having already made a backroom agreement with Mesa to purchase their assets. Something tells me that this ruling was not unexpected. I agree with whoever said that JO may be using this as an easy out. JO will liquidate and ride off into the sunset still a rich man. A thousand pilots will lose their jobs, or at least their seniority. Delta is emboldened to beat up the remaining regionals working for them. Bottom line: the workers are the only losers here, as usual.
But if the BK process gets their financial house in order, and SGU can reach an advance arrangement with US to renew the 900 flying in 2012 it might make sense...
- Easy acquisition.
- They get one new partner out of the deal.
Possible hassles:
- ALPA integration with ASA?
- This will not happen if SGU cannot renew the 900 flying in advance (or unless they can find some other solid use for those 900's...perhaps UA/CAL scope relaxation?)
05-18-2010 | 06:57 AM
#804
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From: It's still a Guppy, just a bit longer.
05-18-2010 | 07:01 AM
#805
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From: e190
I hope the employees can be bought and merged with a new airline but with the company in bankruptcy they can amend their scope clause to just sell the airplanes without the crews.
This industry sucks. One regional will get all excited about more flying while the guy that used to do that flying is on un-employement. in 5 - 10 years the situation is reversed and the once excited guy is on unemployment and looking to get hired at yr 1 pay. This constant whipshaw affect and outsourcing is the end of this profession.
This industry sucks. One regional will get all excited about more flying while the guy that used to do that flying is on un-employement. in 5 - 10 years the situation is reversed and the once excited guy is on unemployment and looking to get hired at yr 1 pay. This constant whipshaw affect and outsourcing is the end of this profession.
05-18-2010 | 07:20 AM
#806
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Joined: Dec 2007
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From: Hot tub for now
I hope the employees can be bought and merged with a new airline but with the company in bankruptcy they can amend their scope clause to just sell the airplanes without the crews.
This industry sucks. One regional will get all excited about more flying while the guy that used to do that flying is on un-employement. in 5 - 10 years the situation is reversed and the once excited guy is on unemployment and looking to get hired at yr 1 pay. This constant whipshaw affect and outsourcing is the end of this profession.
This industry sucks. One regional will get all excited about more flying while the guy that used to do that flying is on un-employement. in 5 - 10 years the situation is reversed and the once excited guy is on unemployment and looking to get hired at yr 1 pay. This constant whipshaw affect and outsourcing is the end of this profession.
People went to Mesa for the short upgrade time and easy entry into the industry. Mesa had poor work rules/pay compared to other companies. Comair went on strike and had a contract that was worthy of our responsibility. [edit: remove flamebait]
Last edited by TonyWilliams; 05-19-2010 at 03:59 AM. Reason: remove flamebait
05-18-2010 | 08:11 AM
#807
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SKW has long held the attitude that they would not touch mag with a ten-foot pole...too hard to clean up the mess.
But if the BK process gets their financial house in order, and SGU can reach an advance arrangement with US to renew the 900 flying in 2012 it might make sense...
- Easy acquisition.
- They get one new partner out of the deal.
Possible hassles:
- ALPA integration with ASA?
- This will not happen if SGU cannot renew the 900 flying in advance (or unless they can find some other solid use for those 900's...perhaps UA/CAL scope relaxation?)
But if the BK process gets their financial house in order, and SGU can reach an advance arrangement with US to renew the 900 flying in 2012 it might make sense...
- Easy acquisition.
- They get one new partner out of the deal.
Possible hassles:
- ALPA integration with ASA?
- This will not happen if SGU cannot renew the 900 flying in advance (or unless they can find some other solid use for those 900's...perhaps UA/CAL scope relaxation?)
05-18-2010 | 12:13 PM
#808
On Reserve
Joined: Jul 2007
Posts: 20
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From: A320 FO
I seriously doubt SKW, Inc would buy Mesa as an airline because of the mess and the debt. Also, the airline would come with the pilots and a union headache. Most likely, if SKW gets involved, its a liquidation of the assets. And everything I'm hearing suggests that SKW has been involved for a while.
05-18-2010 | 02:56 PM
#809
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From: EMB 145 CPT
Keep in mind that the new UAL is now on the hook for lease payments on all 274 ERJ (actually, they own about a dozen). The first head lease doesn't expire on the first ERJ until 2014 and the 274th expires in 2022.
If that is the case, I hope a company other than SKW buy Mesa. Its a shame that companies see employees that are innocent of the decisions of their management's decision be treated with such disregard. I would love to have a company like XJT or any other regional that would welcome their employees, regardless of whether they are union or not.
I seriously doubt SKW, Inc would buy Mesa as an airline because of the mess and the debt. Also, the airline would come with the pilots and a union headache. Most likely, if SKW gets involved, its a liquidation of the assets. And everything I'm hearing suggests that SKW has been involved for a while.
05-18-2010 | 03:41 PM
#810
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I bet Mesa would have won if they didn't overbill Delta. Just goes to show you how another consequence of JO's criminal greediness is the wrecking of the company.
That is MAG managements most serious problem -- they have the planning ability and patience of a hungry dog. If they can make or save $1 now, then they don't see why it is important that that $1 might cost them $2 tomorrow.
That is MAG managements most serious problem -- they have the planning ability and patience of a hungry dog. If they can make or save $1 now, then they don't see why it is important that that $1 might cost them $2 tomorrow.
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