The previous posters are correct. Let's sum up the issues mesa is facing:
- $80M Judgement to Hawaiian (plus legal fees). They are appealing, but I think they will lose.
- A similar lawsuit from Aloha will be heard this spring. The merits of the case are similar, so I think mesa will lose that one too, with a similar judgement.
- US Airways CEO is rumored to have made public statements to the effect that mesa will not be granted a new contract when their's expires (in 2012 I believe).
- Massive pilot turnover, close to 50% in 2007. This is amplified by poor morale, management mistreatment of employees, and the fact that as more people leave the ones left behind have to work more to pick up the slack...further encouraging those pilots to quit.
- Loss of flying due to lack of flight crews. I don't have the details about DCI and Airways Express, but other regionals had to cover some mesa UAX flying in 2007. I'm not sure if mesa is going to get that flying back.
- Oil is up, stocks and the economy are down.
- Well over half of their jet fleet is 50 seaters.
- Mesa management is not held in the highest regard...the judge in the hawaiian lawsuit has directly indicated that he doesn't believe they are honest.
- Mesa is emphasizing branded-flying (Go!) and a startup regional in the People's Republic of China. Both are VERY problematic, high-risk ventures. I suspect they would be better served by focusing on their codeshare flying (which is how regionals make money).
It looks to me like a major confluence of circumstances is catching up with them all at once.
Is there anything good to say?
- They are ordering or contracting for more 700/900 aircraft, so they are not totally stagnating with the 50 seaters.
- There must be something else, but I can't think of it right now.