Airline Pilot Central Forums - Is mesa's end near?

Airline Pilot Central Forums (https://www.airlinepilotforums.com/)

- Regional (https://www.airlinepilotforums.com/regional/)

- - Is mesa's end near? (https://www.airlinepilotforums.com/regional/24947-mesas-end-near.html)

Mesa will file Bankruptcy shed the ERJ contracts and back to business as usual...alleviating payments on planes and their crew shortage as well. They are still flying the 900's for Delta and USAir along with all the other planes for United. Ornstein blows and needs banned from the industry but it is a smart move in the current situation

You could be right... MAG has had rumors about getting rid of the EMB and the Beech since I have been here (5-6 years).

65 cents.

Holy crud.

0.64....& falling. Minus 21% today.

:D music to my ears!

I wish I had a million bucks and a crystal ball.
:rolleyes:

Quote:

Originally Posted by GoGators85 (Post 360770)

With how many airlines have gone out of business recently, especially start ups, the airline business may no longer be an attractive industry to enter. The start up low cost carrier product has be tested and for the most part failed (only two stable major LCC's come to mind SW and Airtran). People may begin to look to a different investment fad to burn money, since it has now become common knowledge that an airline is a bad investment. I think we may be approaching a point where only a few key players emerge from the recession and dominate the market and with that attain the ability to properly price their product.

Just trying to be a little optimistic in a tough time....

Spirit is successful at this point also.

Quote:

Originally Posted by spitfire1500 (Post 360797)

If Delta really was a sharp airline they'd give those 900s to another carrier. After suing Delta, Mesa doesn't deserve those. (or anything else in that matter)

There is a lot of talk on the forum about Mesa simply "going away." First and formost...numerous events necessary for the company to cease operations have yet to occur.

1) Bankruptcy. Mesa has not filed for it yet. Will they file soon? It remains to be seen. A company only files when it is unable to pay its bills. Just because their stock price drops like a rock, does not necessarily mean they will be filing for bankruptcy. Most likely, Mesa will not file on its own. It will take numerous groups of creditors and an involuntary petition on their behalf once they are 100% sure they will not be paid.

2) Ch.11. If and when Mesa does file for bankruptcy, they still have to go to court. This will determine how Mesa will operate or if they will operate at all. Usually, bankruptcy courts will try and make the business as liquid as possible. In the case of Mesa, they will force them to shut down non-revenue producing portions of the business i.e. gO!.

I personally believe we need a lot more information about Mesa's financials before everybody jumps the gun and assumes they will "be gone" in the near future. Quite frankly, none of this information is available...at least for our eyes to see. The proxy which they solicited to shareholders for issuance of more shares to pay off debt (granted it DOES need voter approval) is definitley a sign they have options...at least in the short term.

Also, more information from the inside: Standing bid department just issued a displacement award for IAD and MCO. Most of the pilots were displaced to ERJ JFK. Some were moved over to the CRJ (the pilots still based in IAD on the ERJ).

Thanks for the info Dsrt. You are definitely correct about the stock price not necessarily being an indication that business failure is imminent. On the other hand, the current stock price does illustrate a serious void of investor confidence.