Mesa Air Group Chapter 11 Info
02-10-2010, 01:53 AM
#372
Line Holder
Joined APC: Apr 2008
Posts: 28
Can you spell BONUS???? I'm sure some execs at Wells Fargo would gladly finance some more A/C knowing they will not be around in 10 yrs to take the heat for default. Just like the mortgage meltdown THAT WILL REPEAT ITSELF.... Grab your money and run- unfortunately it doesn't quite pan out that way for us pilot types... your airline folds and you are left scrapping for a $25000/yr job to start if you are lucky....BS
02-10-2010, 05:35 AM
#373
Line Holder
Joined APC: May 2009
Position: CL-65 Left LAMA
Posts: 67
More than likely the engines were pulled and slapped on other aircraft that that needed engine TBO. Mesa did not want to spend the money to TBO engines so they cannibalized the parked aircraft the keep other aircraft in the air....
......actually pretty smart......There is a pile of engines somewhere that need overhauling and will all be returned to the lesser in worn out condition through BK. The lessors can fine mesa all the want for returning bad equipment because it will all be written off anyway through the court......the question will be dose the amount of debt exeed the assets of Mesa Air Group and if trimed can the the company survive profitably.....
......actually pretty smart......There is a pile of engines somewhere that need overhauling and will all be returned to the lesser in worn out condition through BK. The lessors can fine mesa all the want for returning bad equipment because it will all be written off anyway through the court......the question will be dose the amount of debt exeed the assets of Mesa Air Group and if trimed can the the company survive profitably.....
02-10-2010, 06:29 AM
#374
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,041
More than likely the engines were pulled and slapped on other aircraft that that needed engine TBO. Mesa did not want to spend the money to TBO engines so they cannibalized the parked aircraft the keep other aircraft in the air..........actually pretty smart......There is a pile of engines somewhere that need overhauling and will all be returned to the lesser in worn out condition through BK. The lessors can fine mesa all the want for returning bad equipment because it will all be written off anyway through the court......the question will be dose the amount of debt exeed the assets of Mesa Air Group and if trimed can the the company survive profitably.....
......actually pretty smart......There is a pile of engines somewhere that need overhauling and will all be returned to the lesser in worn out condition through BK. The lessors can fine mesa all the want for returning bad equipment because it will all be written off anyway through the court......the question will be dose the amount of debt exeed the assets of Mesa Air Group and if trimed can the the company survive profitably.....Ultimately the lessor owns his property, and is entitled to get it back. BK can get you out of making lease payments, but it does not allow you to keep leased property if you reject the contract. It also cannot force a lessor to change a contract's terms if he does not agree to do so.
02-10-2010, 06:46 AM
#375
Line Holder
Joined APC: May 2009
Position: CL-65 Left LAMA
Posts: 67
True up to a point...but I can almost guarantee that the lessor is entitled to get his serial numbered engines back. Even if it has to come off of a currently flying airplane...
Ultimately the lessor owns his property, and is entitled to get it back. BK can get you out of making lease payments, but it does not allow you to keep leased property if you reject the contract. It also cannot force a lessor to change a contract's terms if he does not agree to do so.
Ultimately the lessor owns his property, and is entitled to get it back. BK can get you out of making lease payments, but it does not allow you to keep leased property if you reject the contract. It also cannot force a lessor to change a contract's terms if he does not agree to do so.
you are correct also on the fire sale of parts a few months back.
02-10-2010, 07:17 AM
#376
Gets Weekends Off
Joined APC: Mar 2007
Posts: 638
It probably depends on the lease terms but I would imagine they will have to get these engines back up to spec before returning. They might have shelved them rather than fix them before the bankruptcy but you can bet those leasing companies will demand they get their engines back "whole." Of course if Mesa threatens all out liquidation then the leasing companies might back down but I have a feeling they will try VERY hard to get that equipment back in flying condition.
02-10-2010, 07:28 AM
#377
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Joined APC: May 2009
Position: CL-65 Left LAMA
Posts: 67
It probably depends on the lease terms but I would imagine they will have to get these engines back up to spec before returning. They might have shelved them rather than fix them before the bankruptcy but you can bet those leasing companies will demand they get their engines back "whole." Of course if Mesa threatens all out liquidation then the leasing companies might back down but I have a feeling they will try VERY hard to get that equipment back in flying condition.
You cannot get blood from a Rock....I think someone has already mentioned that....make all the demands you want.....as Mesa is under the protection of Federal BK laws.
02-10-2010, 08:52 AM
#378
Gets Weekends Off
Joined APC: Sep 2008
Posts: 126
Mesa is in Chap 11......Leasing companies can demand all they want and it is useless unless the court see's its in the best interest of the creditors to repair those engines........if Mesa spends money....that they do not have....to TBO those engines.....it adds more dept....which can be written off......however, when the debt exceeds the assets....liquidation becomes obvious
You cannot get blood from a Rock....I think someone has already mentioned that....make all the demands you want.....as Mesa is under the protection of Federal BK laws.
You cannot get blood from a Rock....I think someone has already mentioned that....make all the demands you want.....as Mesa is under the protection of Federal BK laws.
02-10-2010, 08:54 AM
#379
Gets Weekends Off
Joined APC: Sep 2008
Posts: 126
True up to a point...but I can almost guarantee that the lessor is entitled to get his serial numbered engines back. Even if it has to come off of a currently flying airplane...
Ultimately the lessor owns his property, and is entitled to get it back. BK can get you out of making lease payments, but it does not allow you to keep leased property if you reject the contract. It also cannot force a lessor to change a contract's terms if he does not agree to do so.
Ultimately the lessor owns his property, and is entitled to get it back. BK can get you out of making lease payments, but it does not allow you to keep leased property if you reject the contract. It also cannot force a lessor to change a contract's terms if he does not agree to do so.
02-10-2010, 09:00 AM
#380
Gets Weekends Off
Joined APC: Sep 2009
Position: N/A
Posts: 637
Mesa is in Chap 11......Leasing companies can demand all they want and it is useless unless the court see's its in the best interest of the creditors to repair those engines........if Mesa spends money....that they do not have....to TBO those engines.....it adds more dept....which can be written off......however, when the debt exceeds the assets....liquidation becomes obvious
You cannot get blood from a Rock....I think someone has already mentioned that....make all the demands you want.....as Mesa is under the protection of Federal BK laws.
You cannot get blood from a Rock....I think someone has already mentioned that....make all the demands you want.....as Mesa is under the protection of Federal BK laws.
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