CRJ7Driver

what's the possibility that Mesa will be bought by another airline? after exit bankrupt

rickair7777

Some possibility.

Mesa is too small right now, I don't know where the exact break-even point is for a regional as far as RJ's vs. minimum required overhead but I think they have to be pretty close to it. Between management, Mx, training, FAA required 121 stuff, SEC required stuff, etc a 121 airline's overhead can only be downsized to a certain point. If the fleet shrinks below that point, then your overhead per jet is non-competitive. Mesa might have more value to a purchaser than to themselves because a buyer would gain routes and jets, but just roll them under their existing overhead system.

On the other hand, OJ and his cronies would probably be rapidly phased out by any imaginable purchaser, so for their own job security they might not go down that road. Unless they think they can get a massive stock deal out of the transaction...

IMO a sale would good for the mesa pilots. They would almost certainly get a better boss, workrules, and pay and their SLI would be protected by recent federal legislation (no staple).

CRJ7Driver

I think that will be the best case scenario, that JO and his minions are out. I previously posted what will happens if MAG merge with another regional with furloughs on the limbo. I'm hoping that all forloughes will retain their seniority as the active pilots.

rickair7777

They may retain re-employment rights, but they will not have any seniority over active pilots at the other airline. That has never happened to the best of my knowledge, and should not happen. Furlough is an indication that your career prospects are not as good as a pilot who actually has a job.

Releasemaster

This past week there was an objection to the amended POR. Basically it challenges the legality that all holders of 5% or more of the new common stock will have to sign an agreement allowing the new board to vote their shares. Basically major shareholders will not have a say outside what JO and the board want.

This is a power play by JO to keep complete control and it looks like he's been called on it in federal court.

Releasemaster

More updates from the docket.

MAG appears to be pulling out all the stops in making a case for POR acceptance. Today signed statements by Mike Lotz and an executive with Imperial Capital vouching for the plan where filed as well as an edited POR claryfing stipulations to resolve many objections. Late tonight a settlement with GE, Wells Fargo and Polaris was posted with setteled amounts to get 12 ERJs and 22 CRJ 200s off MAGs books. That amount is roughly 40.7 million and agreements to not file claims or otherwise interupt the 700 and 900 issue.

The hearing on acceptance of the POR is scheduled for this Friday. One unresolved objection is that regarding the plan having owners of 5%< common shares having to sign an agreement surrendering their voting rights to the BoD.

Winglet, we have not heard from you in awhile. Do you have any commentary on these recent developments?

winglet

The votes have been tallied and the POR has been certified as accepted on January 12, 2011. Now on to the hearing.

Epiq Docket 1405. 1/13/2011. Certification of Ballots /Declaration of Erin Gray Certifying the Vote on the Debtors Second Amended Joint Plan of Reorganization

winglet

dba74

Does anyone know if the MESAQ shares will be cancelled? GLTA

Releasemaster

The short answer is yes, MESAQ will be wiped out and those holding it get an empty bag.

Rock752000

Looking forward to that empty bag...