First off, I'm not starting this thread to bash Mesa and Mesa pilots, that has already been covered in several other threads. I keep reading that Mesa is going down quickly. I want to know how much money they still have left in the bank. A couple of years ago someone told me it was over 300 million and i'm sure that number has decreased but to what level and how much is owed?

If Mesa does just shut the doors (not chapter 11), who in your humble opinions do you think will absorb the flying? A few weeks ago there was a ton of rumors of ASA taking over Orlando but since then there have been no announcements, does anyone know anything new about that?

 

There have been no announcements about a domecile (which probably won't happen), but I'm pretty sure the press release mentioned that the flying was being taken up by other DCI carriers, and the flights are loaded in reservations systems as operated by ASA.

 

ASA did pick up most of the orlando flying...in the new route thing delta has on travelnet that shows the redistribution, and the routes that are canceled/cut...ASA had picked up a lot of the MCO stuff.

 

We don't have much money left at this time. I guess upper-management is asking shareholders to approve a plan to issue about 38 million $ in new stock to pay off debt. They had their shareholders meeting yesterday @ their corporate offices in PHX, which is odd because historically they've always held these meetings @ a hotel/banquet hall. Some are speculating that the location of yeserday's meeting @ corporate is a reflection of our current cash situation. I believe a pretty hefty bond payment pertaining to the Hawaiian Airlines lawsuit is due sometime in June, they might not have the money to make that payment, so some are speculating that, at the very least, to expect a possible Bankruptcy filing by that time. Our market cap is now under 20 million $, less than half the cost of CRJ-900, we would be a great target for a buy out, however, nobody wants to touch us because of the assumed debt re: the Hawaiian/Aloha lawsuits.

Don't know anything new about the Delta situation other than what has been stated in the previous posts. The Delta situation is significant because our codeshare w/ Delta generates about 20 million $/month and about 250 million $ per year in revenue for Mesa.

It's hard to believe we used to have 300 million $ in the bank. Management squandered it, the money basically disappeared like a fart in the wind.

 

And who takes over the US Air flying out of Charlotte? I was kinda looking forward to one of their new routes SAT to CLT for commuting......

 

RAH could be a candidate, especially if Frontier sheds their 170's in Bankruptcy.

 

SOURCE: Arizona Republic
http://www.azcentral.com/arizonarepu...saair0418.html

Mesa Air Group chairman notes struggle ahead

Ornstein sidesteps shareholder queries on possibility of bankruptcy for airline

Dawn Gilbertson
The Arizona Republic
Apr. 18, 2008 120 AM
The first question posed to Mesa Air Group Chairman Jonathan Ornstein at the airline's annual shareholders meeting Thursday was one that has been on the minds of many of the struggling airline's investors:

Is a bankruptcy filing inevitable?

Ornstein said he doesn't believe "anything is inevitable" but conceded that the Phoenix-based regional carrier's challenges are daunting. "It's going to be tricky," he said.

Mesa, short on cash after an $80 million court judgment in Hawaii, losses in its Hawaiian operations and other factors, should have a clearer picture of the situation in the next few weeks, Ornstein said.

"We will do everything we can to see the company through this difficult period," he said.

In the brief meeting at the company's headquarters, he did not update shareholders on the airline's cash position or its efforts to raise money. Its last financial results were released in February.

Wall Street has been worried about its shaky finances, especially in the wake of recent airline shutdowns and bankruptcy filings by financially weak airlines.

Ornstein has said for months that Mesa wants to raise $50 million and that its options include selling its spare-parts inventory.

The airline also recently filed paperwork to seek shareholder approval to issue stock to repay $38 million in bonds coming due. The outlook for such an offering is unclear given the freefall in Mesa's stock, which significantly increases the number of shares it needs to issue to pay off the bonds.

The shares, already way off their highs, are down 75 percent, from $2.37 to 57 cents, since the airline disclosed on April 1 that Delta wants to end its contract with Mesa. The business is worth $250 million of Mesa's $1.3 billion in annual revenue. Mesa flies commuter routes for Delta, United and Tempe-based US Airways.

Ornstein said again that Mesa was stunned by Delta's decision. He blamed the change in management at the airline and said it is using Mesa as an easy way to cut flights in this time of exorbitant fuel prices.

Delta, he said, is "basically making their problem our problem."

Mesa has filed a lawsuit to block the cancellation of the contract. At the same time, it is also looking at its options, because the loss of business would mean Mesa has to find homes for 36 regional jets that aren't popular in the industry right now.

"Certainly, we need to plan for the worst, and that's what we're going to do," he said.

 

right I realize they are in trouble but how much cash do they have on hand? I mean we can't really speculate unless we have the numbers, does anyone know how much they have in the bank (not what there company is worth in terms of jet value and such)?

 

btw duke great info do you know exactly how much and do you think they will just totally shut down or go through restructuring?

 

by not updating the cash situation it probaly pretty bad.