Do they staff the 70/90 the same as the 50s in terms of number of crews per aircraft?

Does anyone know if the comair pool will be dissolved if/when they start furloughs? I'm in it now and i'm trying to decide if i want to go somewhere like airnet but they have a one year contract worth about 8 grand i think. i'd still like to fly at comair but i can't sit around and wait forever. i only ask because i heard that air wisky got rid of the poolies with their recent furloughing. any input would be greatly appreciated

Don't know for sure, but if they do start a furlough, what need would there be for a pool? Maybe you can call Art Wanzo and just ask him. Someone posted on this thread that if they do furlough, it is expected to be short, maybe 3 months tops.

I'm sure some of the Comair folks can fill you in. Whatever you decide, make a WELL INFORMED decision.

I am kind of in the same boat. I e-mailed art wanzo a couple of weeks ago just to kind of get an update to see what I should do and he said that classes aren't scheduled as of now(which I am not shocked). So who knows. It all went downhill in a few days, it could turn around or the crap could get deeper.. time will tell. Nothing would really shock me at this point.

Check your PMs. Thanks.

PRESS RELEASE


Delta Cancels Freedom CRJ-900 Delta Connection Agreement
August 5, 2008 6:00 a.m.

PHOENIX, Aug. 5 /PRNewswire-FirstCall/ -- Mesa Air Group Inc. (Nasdaq: MESA) today announced that on August 1, 2008, Mesa received notification from Delta that it is terminating Freedom's CRJ-900 Delta Connection agreement, once again alleging Freedom failed to maintain specified operational performance, as outlined in the contract.


(Logo: Newscom Search)
Mesa strongly disputes these allegations and intends to vigorously defend its contractual rights. Mesa believes the cancellation was driven by Delta's stated intention to reduce capacity and its inability to reduce aircraft at its wholly-owned Comair subsidiary without incurring significant ongoing expense.

Freedom currently operates seven CRJ-900 regional jets for Delta Connection, with a further seven aircraft scheduled to enter service by May 2009. The Company subleases the Aircraft from Delta for $1 per month per aircraft and these aircraft will be returned to Delta in connection with this termination with no further financial obligation to Mesa.

This latest action by Delta is at least the fourth instance in recent months in which Delta has taken unilateral and disputed action against its regional airline partners. This contract cancellation is not dissimilar to Delta's recent action against Freedom in respect to the ERJ-145 Connection Agreement, which resulted in Mesa winning a preliminary injunction, in the Federal Court in Atlanta, enjoining Delta from terminating that contract.

"For many years Delta has built a reputation of working closely with its regional airline partners in a spirit of co-operation and good faith," said Mesa Air Group Chairman and CEO, Jonathan Ornstein. "We are disappointed to see Delta now appears to have chosen a different approach with its regional airline partners. We appreciate the difficulties faced by Delta and remain willing to work cooperatively in the mutual best interests of both companies," Mr. Ornstein added.

Mesa currently operates 180 aircraft with over 800 daily system departures to 124 cities, 38 states, the District of Columbia, Canada, the Bahamas and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go!. In June 2006 Mesa launched inter-island Hawaiian service as go! This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 5,000 employees and was awarded Regional Airline of the Year by Air Transport World magazine in 1992 and 2005. Mesa is a member of the Regional Airline Association and Regional Aviation Partners.


Mesa Air Low Cost Airline - Go Hawaii Airline Flights

SOURCE Mesa Air Group Inc.
/CONTACT: Brian S. Gillman, EVP & General Counsel of Mesa Air Group Inc., +1-602-685-4052, [email protected]

/Web site: Mesa Air Low Cost Airline - Go Hawaii Airline Flights

Current analyst report MESA part I
 

(Excerpted from a national ratings firm's report dated July 21, 2008)

The future for regional carrier Mesa Air Group looks bleak, as the ill effects of both contract restructuring and a potentially devastating lawsuit mount.


.... Mesa has many troubles looming. First, the firm recently escaped an attempt by Delta to terminate its contract (16% of total revenue) because of poor performance. Second, US Airways has been reducing Mesa's capacity with no guarantee for a contract renewal. Even if US Airways renews the contract early next decade, we suspect it will come at substantially lower contractual reimbursement rates. Last, the firm is amid a second lawsuit for unscrupulous activity relating to its Hawaiian go! operations. If the firm has to post bond at the conclusion of the Aloha case for an amount similar to the $90 million it had to post as a result of its dispute with Hawaiian Holdingsit may have serious trouble continuing as a going concern.

We've reduced our fair value estimate to $0.40 per share from $0.50, after increasing the probability of financial distress. We believe the continued economic softening will further strain Mesa's already weak financial position. We estimate (after stripping out marketable security sales) the firm burned through roughly $48 million in cash during the first half of the year.

We further estimate Mesa has roughly $104 million in unrestricted cash. By any standards, this is inadequate to satisfy its $149 million in debt payments maturing during the year. Although Mesa is trying to sell its Air Midwest operations (book value $31 million), we question if a buyer of such unattractive assets exists. Moreover, if Delta is victorious in its appeal, the costs incurred could be fatal for Mesa. Although Mesa already received shareholder approval to issue more equity, we believe this will only provide a temporary solution. Even if the firm escapes its financial turmoil, we don't suspect a bright future. .....(continued next post)

Mesa analyst report part II
 

Escaping bankruptcy is the biggest hurdle currently facing Mesa. Even if the firm is able to avoid financial distress, it still faces substantial uncertainties. Because Mesa receives monthly payment streams from its code-sharing partners, counterparty risk is a huge danger to Mesa's existence. With sky-high fuel prices and domestic passenger demand abating, there is no guarantee its code-sharing partners can survive outside of Chapter 11. Therefore, a financial collapse of its partners could be life-threatening for Mesa. Additional hazards include potential contract restructuring and costly legal battles.

..... Last fall, the firm fired its former CEO George Murnane III for deleting computer files that revealed that Mesa had garnered an unfair advantage against its interisland competitors in Hawaii. Although Murnane appeared to act in isolation, this dishonest act causes us to, at the very least, question the integrity of management. (airdog note: Mesa claimed Murnane was just deleting pornography and "accidently" deleted the files.)Furthermore, the most recent decision to continue Hawaiian service despite enormous losses might be the final blow for a firm nearing financial distress. These two reasons--the dishonest act and its continued Hawaiian service--provide the basis for the poor Stewardship Grade we assign to Mesa.

....During the last three years, Mesa's operating margins fell from 12.4% to a negative 5.7%, as the firm's Hawaiian operations continue to produce steep losses. As wage pressures intensify and industry cutbacks mount, we expect future profitability to suffer.

As a result of its capital expansion, Mesa boasts a debt/capital ratio of 0.93. To make matters worse, the firm recently paid roughly $52 million in a legal settlement to Hawaiian, leaving the firm what we believe to be an insufficient $104 million in unrestricted cash.

so whats the final nail in the coffin? is it already in, or do we need to wait for all of freedom to go away?

Interesting. So in the end, the only thing that Mesa accomplished with their go! operation was just the biggest mass layoffs in the history of Hawaii back on March 31, 2008. Nice.