DL Cuts All Freedom ERJ's
 

Reported today by Ornstein himself, and in an article on Deltanet, DL is terminating Freedom's DCI contract for 50 seat flying, citing inadequate completion factor as grounds for termination.

CRJ-900 flying in JFK remains intact.

MCO flying as of May 1 operated partially by ASA.

Awesome!!!! BTW...more info in the Majors forum.

interesting

Karma is a b*tch!!

For Mesa pilots (current or considering), this is even more reason to jump ship. Mesa is a sinking ship. UAL has been replacing their flying with TSA and temporarily with XJT. Delta is replacing them in MCO, and now in JFK too (that's about 30-35 aircraft). US Air's Doug Parker is going to drop Mesa as soon as their contract is up. They are selling Air Midwest. GO is losing tons of money. Get out while you still can (and others are hiring).

man ya'll are fast. someone beat me to it. do ya'll think they are gonna take those rjs over to hawaii and pick up the slack for aloha airlines? just wondering.

I wouldn't be surprised at this point, although I certainly hope not. It would seem like a horrible idea to increase capacity in the one operation in MAG that bleeds money. I believe the DL flying was some of the most profitable for MAG; it would behoove them to make sure those airplanes find homes that make money.

Of course, I hope they just park the things and the pilots move on to greener pastures.

Sorry Mesa guys, but that’s what you get for messing with the Hawaiian’s payback it a bi----sh
and I'm talking about the people of Hawaii...................For what Mesa did to Aloha

You mean Aloha, right? I agree with you btw...

or do you mean Hawaiians as in population?

Whats wrong with your face flycrj200? =P

I have a few friends in the Mesa system. They are freaking right now. Felt like a jerk, but I had to break out the "I told you so." Such is this crazy industry we all love.

Mesa Air Says To Fight Efforts To Terminate Contract - Update [MESA]

4/1/2008 9:36:36 PM Tuesday, Mesa Air Group, Inc. (MESA) announced that on March 28, Delta Air Lines, Inc. (DAL) notified the company of its intent to terminate the Delta Connection Agreement among Delta, Mesa Air and Mesa's wholly owned subsidiary, Freedom Airlines, Inc. dated as of May 3, 2005.

The Phoenix-based Mesa said Delta seeks to terminate the Connection Agreement as a result of Freedom's alleged failure to maintain a specified completion rate with respect to its ERJ-145 Delta Connection flights during three months of the six-month period September 2007 through February 2008.

The alleged failure to maintain the specified completion rate in the contract is due to Delta's own request of Mesa to remove flights to benefit Delta's overall operation and/or to accommodate Delta mainline flights.

The notice issued by Delta is accompanied by a proposed temporary agreement pursuant to which Freedom would continue to provide Delta Connection services while the parties discuss the terms of a transition agreement.

These flights, among others, have always been taken out of Freedom's performance calculations in the past and Delta acted consistent with this practice and has paid Mesa both its base margin and its incentive margin after crediting Mesa for the Delta mandated schedule changes and /or cancellations.

Mesa denied there is any basis for terminating the Connection Agreement and said it intended to defend its rights there under. Mesa said though it appreciates Delta's desire to reduce capacity, doing so unilaterally in violation of their was not acceptable to it. There was no indication at any time from anyone at Delta that there was a potential issue and the notice comes as a total surprise to Mesa.

Mesa Air Group Chairman and CEO, Jonathan Ornstein said,” We are confident that Delta's actions are not supported by the terms of the Connection Agreement, that we have complied with all of our obligations under that agreement, and that Delta's effort to terminate the agreement will not be upheld in a court of law."

MESA rose $0.02 or 0.85% and traded at $2.37.


http://www.rttnews.com/sp/breakingne.../2008&item=198


Curious if this is Delta's RJ reduction, or if they will look for a replacement that isn't a criminal bottom feeding company.

Stevie Wonder could have seen this coming.

I don't know why, but that one REALLY cracks me up:D

I hope those planes don't end up in the Islands or China.

JO's house of cards is falling and I couldn't be happier.

because we all know mesa wouldn't violate a contract, nor break the law....heck, we even know they'd let their people take the vacation that they've earned....right...............

I only hope that when JO goes to China his experience is similar to that of Jack Bauer.....

Hopefully it the beginning of the end.


Mesa challenges Delta's efforts to terminate contract


http://just4airlines.com/j4_pix/logos/mesa.jpg

April 1, 2008
PHOENIX /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA) (the "Company") today announced that on March 28, 2008, Delta Air Lines, Inc. ("Delta") notified the Company of its intent to terminate the Delta Connection Agreement among Delta, the Company, and Mesa's wholly-owned subsidiary, Freedom Airlines, Inc. ("Freedom"), dated as of May 3, 2005 (as thereafter amended, the "Connection Agreement"). Delta seeks to terminate the Connection Agreement as a result of Freedom's alleged failure to maintain a specified completion rate with respect to its ERJ-145 Delta Connection flights during three months of the six-month period September 2007 through February 2008. The notice issued by Delta is accompanied by a proposed temporary agreement pursuant to which Freedom would continue to provide Delta Connection services while the parties discuss the terms of a transition agreement. This termination does not affect Freedom's CRJ-900 Delta Connection flying. Mesa vehemently denies there is any basis for terminating the Connection Agreement and intends to vigorously defend its rights thereunder. The alleged failure to maintain the specified completion rate in the contract is due to Delta's own request of Mesa to remove flights to benefit Delta's overall operation and/or to accommodate Delta mainline flights. These flights, among others, have always been taken out of Freedom's performance calculations in the past and Delta acted consistent with this practice and has paid Mesa both its base margin and its incentive margin after crediting Mesa for the Delta mandated schedule changes and /or cancellations.
We appreciate Delta's desire to reduce capacity as they publicly announced on March 18, 2008, but to do so unilaterally and in patent violation of their contract is not acceptable. There was no indication at any time from anyone at Delta that there was a potential issue and the notice comes as a total surprise to Mesa.
"We are confident that Delta's actions are not supported by the terms of the Connection Agreement, that we have complied with all of our obligations under that agreement, and that Delta's effort to terminate the agreement will not be upheld in a court of law." said Mesa Air Group Chairman and CEO, Jonathan Ornstein.
Mesa currently operates 182 aircraft with over 1,000 daily system departures to 157 cities, 42 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, Lihue, Moloka'I and Lana'I. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 5,000 employees. Mesa is a member of the Regional Airline Association and Regional Aviation Partners. This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or expected. The Company does not intend to update these forward-looking statements prior to its next filing with the Securities and Exchange Commission. Source: Mesa Air Group
Posted by: just4airlines.com at 0118h UTC Apr 2, 2008

Although I know Delta wants to cut a portion of its 50 seat flying with oil over $100/barrel, there still is a market for 50 seat feed out of JFK. I wonder how they are going to replace this flying. Are they going to put out an RFP for a few jets, or are they going to shift around the current Skywest, ASA, Comair, and Republic flying to handle the JFK flights (more likely).

Wow, I guess we all thought this was coming sooner or later. Anyone on the inside have any info as to how JO is telling everyone he will handle this and are they halting any upgrade classes or stoping new hires because of it?

I know they just sent out a letter about street CA's on the CRJ in IAD....any effect on that?

Also those guys at Air Midwest are on the same seniority list....and many are much more senior than some of the RJ CA's...I guess this makes me wonder will they displace any of them when they SUPPOSEDLY stop operations at AMW?

Just a few questions.

Im starting to think Lorenzo and Icahn are getting his seat warmed up...

I don't think the company knows anything yet. Freedom ERJ = 36 airplanes, and roughly 300-350 pilots.

I don't think they'll hire any street captains since 300ish guys will be displaced into the remaining aircraft (read CRJ). Were still hurrendously short in ORD and IAD. Ex/ this month more lines than captains and f/o's in each domecile. ORD actually has 77 lines and 45 F/O's.

We are in fact doubling our Hawaii presence, so some pilots will be needed to staff that. Don't think that will be popular however, since everyone knows how Go played into the Aloha shutdown. I know I don't want to be a part of that, and that none of us on the mainland support the operation.

I'm sure they're still hiring, but the awarded upgrade classes may be moved/cancelled, it just depends on how the #'s work out when they run the displacement bid.

AirMiddie pilots are on the same list (everyone is at MAG; that's actually how we got the contract we have now). We had to sacrfice everything to Ornstein to get the Freedom A-list guys back on the master seniority list. If we didn't, then he would have moved every 700 and 900 to freedom, leaving the Mesa operation with just the 50 or so -200s and thus further destroying the pilot group.

This will certainly get interesting. If we were staffed (and we aren't) then this would result in furloughs. Who knows?

I just want to thank you for posting here. Along with the Desrt guy and the other few. I know it takes pretty thick skin to be a Mag guy and still post. I have no respect for the folks here who blindly flame Mesa pilots. The site isn't about flaming but about the free flow of useful information in a professional, respectable, manner....Yes, even at the regional forums....

The Mag guys that bother to post help the rest of us get an accurate picture oh whats really going on inside Mesa airlines. That valuable information. Thanks again.

This is what most of the MAG bashers don't understand.

Good post,
I don't think many newhires know what they are signing up for. At the end of the day, you would think any company that operates a high-performance aircraft at the 121 level would be a professional, reputable company. Unfortunately that is far from the truth with the way MAG has treated it's people and done business in the past.
As a newhire, you don't want to bar-hop from one regional airline company to another since you set yourself back, having to start from the bottom of the seniority chain. I can't imagine being at Mesa and trying to decide whether to call it quits or grin and bear, as being an easy decision. I think if the pilots realize that the company dangles things like early upgrades and sign-on bonuses as a way to play with their hopes, they will realize how bad the company really is.

Hawaiians as in population, the people of Hawaii

Too much flying and very little rest:D

Here's what I know from my almost seven years I was with MAG. Right now the Crystal Palace is in a state of shock. People are telling those who make the staffing decisions that they'll recapture the ERJ flying, and Mesa will run the numbers to retrain all the ERJ guys and the thought of all that cash will lump in their throat and NO ONE will have the balls to pull the trigger. They'll let these guys sit until the very last moment, they'll then come up with some crap like telling the ERJ guys that since you're on a different ticket you have no Mesa bidding rights and stuff like that. Anyway they can avoid paying the displacement including salaries they'll do it...anyone at MAG has seen it before. My guess is people will sit at home until the 11th hour...typical Mesa.

FROM DELTA



We have terminated a portion of our Delta Connection operating agreement with Freedom Airlines because of operational performance of their 50-seat aircraft. The move is effective immediately. Our operating agreement with Freedom for its 14 76-seat aircraft remains intact.

“When we began working with Freedom in October 2005, our goal was to extend the market service of Delta Connection while ensuring a mainline-like experience for our customers,” said Don Bornhorst, s.v.p.-Delta Connection. “Freedom’s agreement with Delta, similar to the agreements with all of our Delta Connection partners, reflects this requirement. We expect the operational pull down to be orderly and have minimal impact to our customers.”

Orlando and New York-JFK handle the majority of Freedom’s daily departures. Most customers will be rebooked through our hubs in Atlanta and Cincinnati. Some former Freedom point-to-point flights may continue and be supported by our other Delta Connection partners.

Probably the most disturbing trend here @ Mesa over the last year or so, besides the severe attrition, has been the exodus of extremely senior pilots. I have personally known several pilots who have been here for 15 plus years (for a regional, that's fairly senior) who have left for other airlines. Most of these guys, at least the ones I knew, were just awesome guys who taught so many pilots so many valuable lessons about flying the line and surviving Mesa. It's very tough to watch them bail. We're talking about 10-15000 plus hour pilots.

I completely agree w/ Paxhauler85, the lessons learned from Freedom Airlines should not be forgotten. It was a tactic that divided the pilot group and ultimately got our CEO and management exactly what they wanted. The vast majority of our pilots held out, per ALPAs request, and avoided flying CRJ 700/900s until a contract was reached. What was the reward? An industry leading sub-standard contract that ultimately created the low morale and situation that we're seeing today. The ironic thing is that the pilots who jumped ship and staffed the CRJ 7/9s, Freedom A-listers are what they are politely called, are now leaving and getting hired at ALPA represented carriers. In other words, we all took it in the shorts for nothing. All of this, along with ALPA's encouraging the president to sign into law Age 65 legislation even after 70% of polled ALPA pilots specifically voiced their discontent w/ Age 65, has led me to conclude that ALPA is totally worthless. They are all about themselves, and that's it.

I never trusted MAG management to begin with, my service @ Mesa has also taught me to extend the same level of distrust to ALPA. They just totally dropped the ball in my opinion.

I can tell you have worked for JO. (I was there over 8 years) That is exactly the scenario except that they will also say that they are furloughing out of seniority and that ALPA can start the 3 year grievance process if they want. They may even try to invoke Force Majure again! In any case those ERJ guys are likely going to get screwed for a long time if this plays out as I am sure it will!

Yup. For those mesans who may not have the long-term picture, here are some things you can expect to see:

- Gross miscommunication from Mt. Doom. If they say anything at all about the future plans for the ERJ guys, it will be misleading. They will want you to go quietly to the slaughter...it's important for the DAL 900 operation that the ERJ ops not totally fall apart at the end. Look out for yourselves...JO won't do that for you, in case you hadn't figured it out.

- MAG System Seniority WILL NOT, WILL NOT, WILL NOT be respected when they re-align the workforce. Due to shortage, some senior guys will be allowed to bid into the CRJ (but only as many as they can train); everyone else will hit the pavement. The company is NOT going to furlough ANY junior CRJ drivers, and then pay to train ex-ERJ folks to fill their shoes. They will claim Force Majure and then drag out any grievances for years...most of those affected will be long-gone by the time there is any resolution.

- Junior Assignments to HI. Make sure you get a space-positive ticket, Hawaiian will not likely accomodate mesa jump seaters ("sorry, our 767 is weight restricted at sea level today"), and UAL already put out the word to deny the JS to those mesa types being re-assigned to HI.

- This is situation is exactly what JO was waiting for...an inversion of the pilot supply/demand equation. Anticipate immediate calls for mag alpa to execute a concessionary contract...since you have no work rules left to give up, that will mean a pay cut. Unless you're willing to risk a high likelyhood of shutting the company down for good, you're not going to win on this contract.

net loss is 21 airplanes we already were losing 8 ERJs and we still are taking 7 more 900's by the end of the year. as others have already stated about understaffing the company isnt going to let anyone go, they need them all to fly the CRJ. Yes the Street captain thing is probally not going to happen now, but it could happen sooner then later with all these 300hr guys that came on line last year.
So i get to either displace to the CRJ in JFK or get the F out of New york i cant really complain about that. The sky isnt falling as some hope. Who knows JO could get the Boot.

I doubt there will be any furloughs or concessionary contracts going on at MAG. Ornstein is a snake of a businessman. Don't be surprised if an announcement is made in the coming months that he has placed 36 ERJ's with another carrier. All is not lost for the pilots. This will, I believe, put a hold on contract negotiations.

I have doubts that Ornstein will be able to find a home for the ERJ's as profitable as the DLX flying has been. Freedom is one of the biggest money makers for Ornstein, and this blow will certainly put MAG in a precarious situation if he can't place those planes.

Good luck MAG pilots. As much as I dislike your company, it would be devastating to see any jobs lost due to the likes of Ornstein.

If we didn't post, then nothing factual would ever be posted about Mesa.

Thanks for the kudos, I'll keep it up.

Hawaiians as in population, the people of Hawaii.

Got it now, tx.


Originally Posted by flybywire44 http://www.airlinepilotforums.com/im...s/viewpost.gif
Whats wrong with your face flycrj200?
I meant to ask the same thing... For a while I thought you were related to Janet Reno... ;)

Nobody is going to be placing any 50 seaters with anyone other than the budweiser factory...ever (unless it's in the third world).

The majors can't wait to get rid of the 50's they currently have...that's why DAL picked this moment in time to play the performance card with mesa.

Tell that to UAL and XJT out of IAD. There's flying out there but its scraps that continue to fall off the Mesa wagon, much like the freedom flying ASA will be covering.

Other than that, I agree, 50 seat RFP's are dead.

I have to disagree. 50 seaters are definitely going to decline, but there will always be a rather large market for them. Especially given the current scope clauses in place at the majors. DL has already reached the maximum amount of 76 seat aircraft in the DCI fleet, and jets that size aren't allowed under the CO banner in any form.

50 seaters still make a huge amount of money if utilized properly. Many of the markets they are used in have huge premiums on ticket prices that offset the cost of the aircraft's inefficiency, and many of those markets can't support a larger aircraft and are beyond the efficient range of a turboprop.

Yes, the 50 seat fleet is going to take a beating, but 50 seat flying and RFP's will keep coming, especially as we see the less stable regionals taking hits.

Good Luck Mesa guys, ya'll don't deserve being treated this way and i hope you stand up for yourselves...

I could not have said it better!!!!!!!!