Mesa's Future
01-28-2008, 10:44 AM
#11
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Originally Posted by stinsonjr
Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
01-28-2008, 10:49 AM
#12
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Originally Posted by stinsonjr
Regional Question:
When mainline carriers contract with a regional to provide feed, are there specific reasons that the mainline carrier can void the contract? My thinking is that like certain financial instruments, if xyz goes below abc then you cash us out. Do the mainline carriers state "if your balance sheet looks a certain way, and your potential liabilities exceed your net worth, we can void the contract and go with another regiona in better financial shape"? Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
When mainline carriers contract with a regional to provide feed, are there specific reasons that the mainline carrier can void the contract? My thinking is that like certain financial instruments, if xyz goes below abc then you cash us out. Do the mainline carriers state "if your balance sheet looks a certain way, and your potential liabilities exceed your net worth, we can void the contract and go with another regiona in better financial shape"? Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
I know there are specific operational performance requirements, and there might be financial items also.
The bigger issue with finances is the FAA...121 airlines must maintain adequate financial reserves or the Fed will pull their ticket. The reasons are obvious...a broke airline is not likley to do Mx correctly, and may take other operational shortcuts.
I suspect that mesa has aleady qualified for contrat termination on operational performance issues with UAL (and maybe Airways) based on the fact that other regionals had to cover their UAL flying last year. But it would be hard to fire any large regional right now...no one else can take on a sudden large amount of flying due to pilot shortages.
01-28-2008, 11:04 AM
#13
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Joined APC: Dec 2005
Position: 7ER B...whatever that means.
Posts: 3,967
Originally Posted by stinsonjr
Regional Question:
When mainline carriers contract with a regional to provide feed, are there specific reasons that the mainline carrier can void the contract? My thinking is that like certain financial instruments, if xyz goes below abc then you cash us out. Do the mainline carriers state "if your balance sheet looks a certain way, and your potential liabilities exceed your net worth, we can void the contract and go with another regiona in better financial shape"? Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
When mainline carriers contract with a regional to provide feed, are there specific reasons that the mainline carrier can void the contract? My thinking is that like certain financial instruments, if xyz goes below abc then you cash us out. Do the mainline carriers state "if your balance sheet looks a certain way, and your potential liabilities exceed your net worth, we can void the contract and go with another regiona in better financial shape"? Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
01-28-2008, 11:06 AM
#14
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Joined APC: Dec 2005
Position: 7ER B...whatever that means.
Posts: 3,967
Originally Posted by rickair7777
I know there are specific operational performance requirements, and there might be financial items also.
The bigger issue with finances is the FAA...121 airlines must maintain adequate financial reserves or the Fed will pull their ticket. The reasons are obvious...a broke airline is not likley to do Mx correctly, and may take other operational shortcuts.
I suspect that mesa has aleady qualified for contrat termination on operational performance issues with UAL (and maybe Airways) based on the fact that other regionals had to cover their UAL flying last year. But it would be hard to fire any large regional right now...no one else can take on a sudden large amount of flying due to pilot shortages.
The bigger issue with finances is the FAA...121 airlines must maintain adequate financial reserves or the Fed will pull their ticket. The reasons are obvious...a broke airline is not likley to do Mx correctly, and may take other operational shortcuts.
I suspect that mesa has aleady qualified for contrat termination on operational performance issues with UAL (and maybe Airways) based on the fact that other regionals had to cover their UAL flying last year. But it would be hard to fire any large regional right now...no one else can take on a sudden large amount of flying due to pilot shortages.
01-28-2008, 11:08 AM
#15
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Posts: 39,488
Originally Posted by freezingflyboy
CAL has the option to pull another 52 airplanes from their CPA with XJT in January of 2009 I believe.
01-28-2008, 11:13 AM
#16
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Position: B6 CA
Posts: 582
Originally Posted by H46Bubba
Have they gotten any of those Delta -900's? I heard someone say they saw a couple sitting over on the line in CLT. They were supposed to start flying them back in August.
01-28-2008, 11:28 AM
#17
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Joined APC: Mar 2006
Position: SkyWest Capt.
Posts: 2,963
Originally Posted by stinsonjr
Regional Question:
When mainline carriers contract with a regional to provide feed, are there specific reasons that the mainline carrier can void the contract? My thinking is that like certain financial instruments, if xyz goes below abc then you cash us out. Do the mainline carriers state "if your balance sheet looks a certain way, and your potential liabilities exceed your net worth, we can void the contract and go with another regiona in better financial shape"? Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
When mainline carriers contract with a regional to provide feed, are there specific reasons that the mainline carrier can void the contract? My thinking is that like certain financial instruments, if xyz goes below abc then you cash us out. Do the mainline carriers state "if your balance sheet looks a certain way, and your potential liabilities exceed your net worth, we can void the contract and go with another regiona in better financial shape"? Similiar to a loan convenant with a bank - does this exist in the regional world, and if so, I wonder if Mesa's balance sheet is getting close to triggers?
01-28-2008, 11:56 AM
#20
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Joined APC: Dec 2005
Position: 7ER B...whatever that means.
Posts: 3,967
Originally Posted by rickair7777
I had heard that. I suppose they might do it if they want to eliminate 50-seat flying.
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