MAG secures $750,000,000
 

Something big is in the works. Like usual, rumors running rampant.

Hearing possible purchase of Eagle or Pinnacle.

Or large CRJ 900 order.

Also hearing Mesa purchased/owned 175s on top of the 30 coming.

JO keeps hinting in his emails to large expansion and the 30 175s coming are only the "tip of the iceberg"

Why would MAG, which only operates a few 50 seat AC, want to purchase airlines that are comprised of mostly 50 seat AC when 50 seaters are on their way out? I am certain that isn't in the works.

Who is going to fly all those new planes at Mesa? Get rid of the 50 seat jets keep the pilots...............

Especially with the worst contract in the industry for the number of seats they fly!

Source? A bankrupt unlisted company should have a tough time attracting $750M without the ability to return equity.

Who has the scope for all that regional flying???

We have a better contract than G7 and RAH. Just to clarify.

Good point brought up.

As a bankrupt unlisted company, it would be hard for Mesa to get 750 mil unsecured--which makes it more likely for buying planes...

Because if it's a secured loan then the bank can repo the plane. Much less risk involved for the bank.

Way easier to get a loan that size for asset purchase.

Have you taken a look at your own publication of contract rates? Why is your line always toward the bottom?

Just to clarify, your leaflet of a contract is still a complete joke.

Pinnacle? Who are they?

Sounds like financing to pay for the United 175s. When United placed that order, they stated that they wanted production slots and that ultimately it may not be them, but a regional partner instead. Nothing to see here folks.

Probably wouldn't need that much cash to buy another regional. ExpressJet for example only cost about $140 million for SkyWest to buy.

True, delta sold mesaba for $62 millions and compass for $20.5 millions. I guess MAG is planning something more than just buying other regionals.

Delta Air Lines Reaches Definitive Agreements to Sell Mesaba, Compass Airline Subsidiaries - Jul 1, 2010

Hookers and blow. Yea, inflation sucks.

Probably financing for the 36 E-Jets. Simple math shows 750,000,000 divided by 36 airplanes is around 20.1 million a pop.

I thought the 30 e-jets were bought by United?

The original orders were secured by United (out of fear of losing 2014 delivery slots). And now being transferred to Mesa. Not a lease situation, but where Mesa will own said planes. Sounds like $25mil a plane.