Mesa 4.0 what’s the latest
11-17-2022, 06:38 PM
#2461
Line Holder
Joined APC: Sep 2022
Posts: 55
If United wanted to own a regional airline it would already own one. Regional airlines are designed to keep labor costs down, not only pilot costs, but also ramp, maintenance, dispatch, and FA costs. The airlines that do own regionals have chosen not to merge them in order to keep all these separate costs down, even when pilot labor costs have increased. United does not appear to be in any hurry to give their own pilots a good labor contract, and integrating labor groups from another airline would create even more complexities and tension.
Scott Kirby has stated he wants to reduce regional jet feed and he does not see them as profitable in markets served by low cost carriers. Short term, United is moving towards using CRJ 550s to elevate the customer experience and create loyalty, and they are helping Commutair get E175s up and running. Long term, they created United Aviate Academy to supply more pilots in the future. United allowed Expressjet to pretty much go under and dropped their contract with Air Wisconsin.
If United succeeds in turning Commutair into an E175 carrier, that will reduce flights operated elsewhere in the United system due to scope. Some of that is due to the pilot shortage, but it may be United’s way of preparing in case one of its E175 partners goes under. United prefers to let its regional carriers compete against each other to keep costs down, and in a crisis, they support the cheapest one.
Scott Kirby has stated he wants to reduce regional jet feed and he does not see them as profitable in markets served by low cost carriers. Short term, United is moving towards using CRJ 550s to elevate the customer experience and create loyalty, and they are helping Commutair get E175s up and running. Long term, they created United Aviate Academy to supply more pilots in the future. United allowed Expressjet to pretty much go under and dropped their contract with Air Wisconsin.
If United succeeds in turning Commutair into an E175 carrier, that will reduce flights operated elsewhere in the United system due to scope. Some of that is due to the pilot shortage, but it may be United’s way of preparing in case one of its E175 partners goes under. United prefers to let its regional carriers compete against each other to keep costs down, and in a crisis, they support the cheapest one.
11-17-2022, 06:54 PM
#2462
In a land of unicorns
Joined APC: Apr 2014
Position: Whale FO
Posts: 6,592
im not going to the rabbit hole of the Nicolau award, but you are comparing apples to oranges. AA and US Air was two majors merging. You are talking about merging a legacy to a regional. It has never been done before. Such a delusional thought. What would United gain from this?
11-17-2022, 07:05 PM
#2463
Line Holder
Joined APC: Aug 2019
Posts: 38
United will gain the amazing MESA culture and work ethic they already own the planes and the routes and they have no problem recruiting from off the street but what they want the entire MESA package we are just playing hard to get our fearless leader will not just give us away!
11-17-2022, 07:07 PM
#2464
In a land of unicorns
Joined APC: Apr 2014
Position: Whale FO
Posts: 6,592
United will gain the amazing MESA culture and work ethic they already own the planes and the routes and they have no problem recruiting from off the street but what they want the entire MESA package we are just playing hard to get our fearless leader will not just give us away!
11-18-2022, 01:09 PM
#2466
Line Holder
Joined APC: Sep 2022
Posts: 55
im not going to the rabbit hole of the Nicolau award, but you are comparing apples to oranges. AA and US Air was two majors merging. You are talking about merging a legacy to a regional. It has never been done before. Such a delusional thought. What would United gain from this?
10-K and 10-Q link below.https://www.sec.gov/ix?doc=/Archives...k_20210930.htm
https://www.sec.gov/Archives/edgar/d...8498-index.htm
11-18-2022, 05:32 PM
#2468
Line Holder
Joined APC: Jan 2021
Posts: 57
11-19-2022, 04:28 PM
#2469
Isn’t that a sauce?
Joined APC: May 2022
Posts: 280
For some reason, I'm not able to paste the tables from the Mesa 10-K in this thread. Of course, that 10-K is old and likely won't see the 2022 10-K until March. Not including the 18 700s that were just sold to United, Mesa owns 18 175s, 49 900s and 1 200. If you look at the balance sheet in the most recent 10-Q, you'll see that Mesa has $1.32 billion of assets and approximately $897 million of liabilities. Mesa's biggest issue is current liquidity I would surmise from the balance sheet. Probably why it sold the planes to United. But there is one very important item not on the balance sheet and that is work force in place, i.e., Mesa's labor force, that is likely a pretty valuable asset given the current state of the industry. Additionally, Mesa discloses it has bargain leases on the planes it leases from United. Not sure if that means United is losing money on those leases of those planes or not. Additionally, the CPA with AA states that a cause for cancellation includes a change of ownership without the permission of AA. So there appear to be reasons why both United and Mesa would benefit from such an acquisition. I'm not saying it will happen, merely presenting a case as a possibility to resolve some current issues satisfactorily. If you're really interested, take a look at the financial information that is provided, all of Mesa's public filings are available on the SEC website, Edgar, very easy to find 10-K and 10-Q link below.
https://www.sec.gov/ix?doc=/Archives...k_20210930.htm
https://www.sec.gov/Archives/edgar/d...8498-index.htm
10-K and 10-Q link below.https://www.sec.gov/ix?doc=/Archives...k_20210930.htm
https://www.sec.gov/Archives/edgar/d...8498-index.htm
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