New Mesa Thread
04-24-2016, 09:07 AM
#5831
Gets Weekends Off
Joined APC: Nov 2015
Position: Freight 75/76 FO
Posts: 140
Lastly, you connect pay to pilots directly with the financial health and longevity of a company. Are you saying Mesa needs to have exceedingly high expenses on the labor side to be more competitive in selling it's service? In my experience companies with higher labor costs are always less competitive when compared to like alternatives. Can you share some examples of companies in the transportation industry adhering to your higher expense = more profitable business model? Republic perhaps?
04-24-2016, 09:58 AM
#5832
Gets Weekends Off
Joined APC: Feb 2016
Posts: 107
I see some of the points you are trying to make. But one could make the argument that not investing in labor is not a good sign when it comes to the longevity and productivity of a company. Although I have to admit that somehow it does not seem to be affecting Mesa right now, contrary to what logic says.
My take, they are filling classes because there is opportunity here and the hiring process is painless and done without HR complications. I've been very impressed with the caliber of people I've gotten to know in the last two EJet class. There is an interesting mix of professionals, former GA jet jocks, not a small number from other regionals, and some military. With a few exceptions they are all viewing Mesa as a stepping stone to bigger and better things. It sounds like the next class for the EJets will be even larger than the previous two. I got here on March 3, went to CTP and just finished systems. So far it's been a great experience for me. Staff and instructors have all been professional and enjoyable to work with.
04-24-2016, 12:20 PM
#5834
Gets Weekends Off
Joined APC: Jul 2006
Posts: 737
The interest rates aren't a secret, they were published.
4.75% for the first 171 million, 5.75% for the next 45 million, and 6.25% for the last 30 million. This covers the first 10 airplanes. We should be hearing soon for the last 8 jets.
4.75% for the first 171 million, 5.75% for the next 45 million, and 6.25% for the last 30 million. This covers the first 10 airplanes. We should be hearing soon for the last 8 jets.
04-24-2016, 12:29 PM
#5835
Gets Weekends Off
Joined APC: Feb 2015
Posts: 580
And who's gonna pay for the next round of airplanes?
04-25-2016, 05:58 AM
#5837
Line Holder
Joined APC: Nov 2015
Posts: 60
Hmmm, interesting theory: Buying airplanes to keep wages low for a fraction of a workforce.
I don't think a sane investor would have such a thought as it's a self-defeating business model. What a driver is paid is peanuts (even if they tripped wages) compared to the capital outlay and maintenance expenditures of a $30mm machine operating 15-20 hours a day. I think a better explanation is they are buying aircraft to grow the business and fulfill contractual obligations going out the next 8-10 years? Investor groups are there to make money with the least amount of risk and with the most stability. Investors look to take cash and reinvest, or increase the value with a long-term strategy. $600,000,000 dollars are not invested/obligated with the express purpose of sticking it to the pilot group.
I think the best takeaway from the aircraft purchases is that Mesa's investors are meeting current needs, are committed to a long-term growth strategy, and their clients are equally onboard. Perhaps they are setting the business up for sale, an IPO, acquisitions, organic market expansion, who knows. They do present Mesa as being the best value for the money and have set up a model through long-term contracts to do just that. As an employee you are always better to be with a company growing rather than shrinking.
Regarding previous comments; Mesa will be kaput in 2-3 years because it won't pay top wages to their pilots simply does not pass the logic test. But, if one is convinced Mesa is sinking they are foolish not to jump ship as quickly as possible. The only person looking out for your best interest is you.
I don't think a sane investor would have such a thought as it's a self-defeating business model. What a driver is paid is peanuts (even if they tripped wages) compared to the capital outlay and maintenance expenditures of a $30mm machine operating 15-20 hours a day. I think a better explanation is they are buying aircraft to grow the business and fulfill contractual obligations going out the next 8-10 years? Investor groups are there to make money with the least amount of risk and with the most stability. Investors look to take cash and reinvest, or increase the value with a long-term strategy. $600,000,000 dollars are not invested/obligated with the express purpose of sticking it to the pilot group.
I think the best takeaway from the aircraft purchases is that Mesa's investors are meeting current needs, are committed to a long-term growth strategy, and their clients are equally onboard. Perhaps they are setting the business up for sale, an IPO, acquisitions, organic market expansion, who knows. They do present Mesa as being the best value for the money and have set up a model through long-term contracts to do just that. As an employee you are always better to be with a company growing rather than shrinking.
Regarding previous comments; Mesa will be kaput in 2-3 years because it won't pay top wages to their pilots simply does not pass the logic test. But, if one is convinced Mesa is sinking they are foolish not to jump ship as quickly as possible. The only person looking out for your best interest is you.
04-25-2016, 06:33 AM
#5839
Line Holder
Joined APC: Jul 2015
Posts: 73
Trust me, most want out of this dump immediately. The last thing they're worried about is mesa's ongoing finances. 
04-25-2016, 06:45 AM
#5840
Gets Weekends Off
Joined APC: Nov 2015
Position: Freight 75/76 FO
Posts: 140
Ok guys, do you REALLY think that Mesa has more than 3-5 years of business left? The pilot shortage; the big airlines are force retiring 18000 pilots by 2022. The regionals only have 18000 pilots. You know for a smart writing guy, you lack simple common sense. No disrespect.
Just doing some morning brainstorming over coffee here... How about if the dynamics turn out as follows: Majors hire all regional pilots. The regionals can't hire because of the pilot shortage. The regionals become extinct.
Then the majors will to compensate some how for the extinct cheap labor that the regionals used to provide. They might stop service to a lot of true regional destinations (some regional flying might be brought back in house, but not all. Think of United paying over $100.00 an hour to two 737 pilots to take 23 pax from IAH to CLL). Ticket prices might also go up, and that will most likely result in an immediate decrease in leisure travel and non-essential business travel (decrease in demand). A lot of different things could happen. But the point is that I don't think that the majors are going to hire all regionals pilots and the regionals are simply going to become extinct. Without the cheap labor of the regionals, majors will have to pass on the cost of the more expensive labor to the public, and in turn the public most likely will fly less. As a result less pilots would be needed. No more pilot shortage.
Edit: My post is just for the sake of argument about the future of the regionals. I'm not trying to say that Mesa is a good airline to make a career. But our pay rates, and corporate culture clearly state that.
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