Mesa Cash Crunch
 

best news I have heard all year

As a result of losing the Delta flying, Mesa will lose $1 billion dollars in sales over the next four years. Take that along with their already small cash balance and their very small market capitalization, I think it is only a matter of time. I just wish they would release their 1st quarter earnings (it ended 52 days ago!) so I could make a more accurate prediction as to when they will be gone.

As for my guess, I say Mesa is in Ch.11 by the end of June and out of business by the end of the year.

I dont think Mesa is going anywhere, they are going to go into bankruptcy, get rid of all debt any flying they don't want (50 seats) impose a contract on all workers, and then be the cheapest 70-90 seat operator in the country and the cycle will continue. Thats just how it works. I hope I am wrong.

I think BK is very likely, because (in addition to everything else) JO has to get rid of all those senior ERJ pilots...if he is forced to furlough from the bottom of the list and retrain senior ERJ people on the CRJ, the training costs alone could kill him. BK will let him terminate the pilot contract and fire whoever he likes.

has any airline ever gotten aproved to furlough outside of senority order?

Approved by who? A BK court? There's no reason a court would force unneeded massive training expenses on a bankrupt airline.

There's nothing magical or holy about airline seniority...in the real world most companies layoff whoever they please when the time comes: Unneeded skills, poor performers, older (highly paid) employees, etc

I would say this could be the end. Performance is why Delta dumped them. They are already bleeding money.

I feel bad for the employees. JO (Jack OF%) can bite me though!

I tend to agree..... or if not out a business a mere shell of its former self.

tick tok.... time will tell.

I heard furlough warning notices went out today to the bottom 400. Anyone know if this is true?