Bankruptcy Rumors
#192
Line Holder
Joined APC: Nov 2009
Posts: 51
Regional carrier Mesa Air exploring options to raise capital after United switch
Reuters
8:24 AM ET Dec-19-2022Dec 19 (Reuters) - Mesa Air Group Inc (MESA.NaE) said on Monday it was exploring options to raise money amid rising costs after the U.S. regional carrier handed its pilots bumper contracts to deter switching to other airlines.
Shares of Mesa (MESA.NaE), which said it was finalizing an agreement to operate regional flights for United Airlines, were up about 7% before the bell.
Regional carriers run flights to places that do not attract routes from the bigger U.S. airlines. For instance, American Eagle is a network of six regional carriers operating 3,400 daily flights under a codeshare with American Airlines (AAL.NaE).
Mesa (MESA.NaE) said it was moving to United's network from next year after opting to wind down flights for American Airlines (AAL.NaE).
The company added it was finalizing a previously announced sale of remaining eight CRJ-550 jets to United, adding it also has an agreement to sell 11 surplus CRJ-900 aircraft to an unnamed third party.
"Mesa (MESA.NaE) is pursuing other avenues to increase liquidity through the sale of additional surplus aircraft, spare parts and spare engines," said Arizona-based Mesa (MESA.NaE) in a statement.
Reducing debt has become a priority for the airline industry that went on a borrowing binge to survive the pandemic. The industry is also facing cost pressures from fuel prices and new labor contracts.
Mesa (MESA.NaE) had raised pilot salaries earlier this year by as much as 172%.
The carrier, which recently postponed the release of its fourth-quarter results scheduled for Dec. 12, had total assets of $1.32 billion as of June 30 versus total liabilities of $897.1 million. (Reporting by Kannaki Deka in Bengaluru; Editing by Krishna Chandra Eluri)
#193
yiu are dense aren’t you. They would need to go to 70. The 175s Mesa already CANT FLY are the 70 seat version. The E170s that RAH have, the only path this pipe dream has of working, are 70 70 seats.
Do you really think United is going to park 40 NEW! E175 with 76 seats for Mesas 20 year dumpster fire 900s?
UNITED IS MAXED OUT FOR SCOPE!
there is a hard number of 76 seaters that will never grow! There is a hard number of 70 seaters that will never grow! WE ARE AT BOTH LIMITS!
Do you really think United is going to park 40 NEW! E175 with 76 seats for Mesas 20 year dumpster fire 900s?
UNITED IS MAXED OUT FOR SCOPE!
there is a hard number of 76 seaters that will never grow! There is a hard number of 70 seaters that will never grow! WE ARE AT BOTH LIMITS!
#194
Originally Posted by pangolin;[url=tel:3555180
3555180]We are not flying all the 76 seat 175s we have. Republic is not flying all of theirs either.
you have to remove the E175s from the CPA
#195
That seems pretty impractical as a short term solution. There would have to be changes made in the reservation/ticketing software, paint aircraft, open a 900 crew base in UA hubs or deadhead crews around, etc. Wouldn't it be better to run displacement bids as the AA flying winds down, focus on captains, and staff the aircraft that UA actually wants? The E175 is a far superior product to the CRJ from a customer standpoint. Introducing an undesirable fleet type on a temporary basis just doesn’t make sense. My guess is that Mesa is told to do what they need to do to staff their allocated 175’s, or UA will shop for another vendor.
#196
Gets Weekends Off
Joined APC: Jan 2022
Posts: 492
#197
there was a point in time in United’s past where I could see that happening. Kirby would not do that to the United brand.
#198
Gets Weekends Off
Joined APC: Aug 2020
Posts: 2,327
900s are already in the UA reservation system - non issue. What matters is the number of 900s. We only have staffing for 25. There’s at least that many 175s not flying. Crj to 175 swaps have happened in the past so it’s not out of the question as a stop gap while we train. That’s what I expect. Instant spring summer lift for UA to replace the loss of AW as we spin up. We need FOs on the 175 more than ca. However I’m skeptical still as well because no 900 flying is reflected in any UA future schedule especially out of DFW and PHX.
#199
Gets Weekends Off
Joined APC: Mar 2017
Posts: 429
The real problem won't be scope at United or any of these other issues.
The real problem will be the continued staffing problems at Mesa. Why would anyone want to fly for Mesa when the writing is on the wall that they are not a sustainable company. Mesa offers much lower compensation and worsening QOL, combined with the very real possibility of going out of business at any moment. Anyone that works at Mesa will be looking to leave as quickly as possible and no one will be coming in the door. This will lead to a negative feedback cycle with worsening conditions.
The real problem will be the continued staffing problems at Mesa. Why would anyone want to fly for Mesa when the writing is on the wall that they are not a sustainable company. Mesa offers much lower compensation and worsening QOL, combined with the very real possibility of going out of business at any moment. Anyone that works at Mesa will be looking to leave as quickly as possible and no one will be coming in the door. This will lead to a negative feedback cycle with worsening conditions.
#200
Isn’t that a sauce?
Joined APC: May 2022
Posts: 280
As mentioned before, isn’t how may planes have the parking brake set, it’s how many are under contract (staffed or not). Simply having 175’s sitting on a ramp won’t cut it, they have to be removed from the agreement between United and Mesa. Also, -900 flying out of DFW or PHX is AA flying. If UA did as you mention, the flying would be out of UA hubs to smaller cities. Kirby has been pretty clear that sending rj’s into the hubs of our competitors is a failing strategy. Mesa could pull a rabbit out of the hat like Air Wisconsin did and find flying with another carrier, but I seriously doubt that you’ll see CRJ-900’s in the UAX system.
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