TEMPE, Ariz.--(BUSINESS WIRE)-- US Airways Group, Inc. (NYSE:LCC - News) today released the following statement regarding its ongoing discussions with Mesa Air Group and its Chapter 11 Bankruptcy case:



US Airways and Mesa have signed a non-binding term sheet which outlines an agreement in principle for an extension of 39 months from the current scheduled expiration of June 30, 2012, for the operation of 38 CRJ900 aircraft under the companies’ codeshare and revenue sharing agreement. The term sheet also includes a reduction in the rates paid by US Airways to Mesa to operate those aircraft. The transaction contemplated by the term sheet is subject to a number of conditions, including the negotiation and execution of definitive documents, approval by the US Airways and Mesa boards of directors, US Airways’ approval of Mesa’s Plan of Reorganization, and approval by the U.S. Bankruptcy Court.

The race to the bottom continues... Stay tuned.

The continued slide of the RJ era.

This is old news (3 weeks ago).

The blurb fails to mention that Mesa gave US Airways 10% of the company when it emerges from bankruptcy in exchange for an extention of the -900 contract. Tough competition.

Either way- best of luck to all Mesa brothers and sisters.

Thank's for the support SmitteyB.

As for the usual Mesa bashers, present and future, I can't say that I'm too inclined to sympathy. Over the last 3 years I've witnessed the devastating toll taken on our employees and their families. 500 furloughs, hundreds of downgrades, displacements, etc. In three years this company has gone from 1800 pilots to 800, a near 60% reduction. Am I happy about contract 08? Absolutely not, but I'm hopeful that with a new MEC and contract negotiations around the corner that things might change.

Regards

I think the race was over a long time ago.

This is very sad news for us at PSA. Why Airways would extend a contract to a dying regional that has poor customer service, dirty airplanes, rude flight attendants, and falsifies their off the gate departure times is beyond me.

Its called "economics".

PSA certainly does have the more professional flight attendants, I agree completely:

http://www.wthr.com/story/13302949/flight-attendant-arrested-for-cocaine-possession

TexasPilot, please show me the recent stats that indicate PSA provides a superior service on all the counts you mentioned, otherwise I’ll have to accuse you of driveling out of your face hole again.

You PSA guys are funny. My CRJ is better than your CRJ. Good one.

The "superior product" is all in your mind, Texas Pilot. I commute on both and there is no discernible difference either in the demeanor of the FA's or the condition of the cabin.