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Quote:

Originally Posted by stinsonjr (Post 308979)

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 don't know for sure, but I doubt that contracts between regionals and mainline contain such covenants. However, the financial condition of a regional may influence their ability to acheive other contractual metrics (such as dispatch reliability and on-time performance).

Quote:

Originally Posted by stinsonjr (Post 308979)

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?

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.

Quote:

Originally Posted by stinsonjr (Post 308979)

I'm fairly certain most contracts with mainline carriers use performance thresholds as their benchmark for what constitutes unsatisfactory performance or breach of contract.

Quote:

Originally Posted by rickair7777 (Post 308997)

CAL has the option to pull another 52 airplanes from their CPA with XJT in January of 2009 I believe.

Quote:

Originally Posted by freezingflyboy (Post 309011)

CAL has the option to pull another 52 airplanes from their CPA with XJT in January of 2009 I believe.

I had heard that. I suppose they might do it if they want to eliminate 50-seat flying.

Quote:

Originally Posted by H46Bubba (Post 308948)

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.

Pretty sure those are up here in JFK flying under the Freedom name.

Quote:

Originally Posted by stinsonjr (Post 308979)

Mesa had to pay UAL $30M, for missing 07 performance numbers, last Jan and will probably have to do this Jan for 07.

Quote:

Originally Posted by JetJock16 (Post 309031)

Mesa had to pay UAL $30M, for missing 07 performance numbers, last Jan and will probably have to do this Jan for 07.

And didn't United only profit $20 Mil last year? Wow...

Quote:

Originally Posted by ExperimentalAB (Post 309062)

And didn't United only profit $20 Mil last year? Wow...

Thanks Mesa! :D

Quote:

Originally Posted by rickair7777 (Post 309012)

I had heard that. I suppose they might do it if they want to eliminate 50-seat flying.

Assuming 50-seat flying doesn't disappear completely in the next 2 years and CAL decides to release those airplanes, I wouldn't be surprised if those airplanes find their way into an agreement with UAL, USAir or Delta.