pdub20s

source of this info?

InvertedLoop

Word from most of the guys in the training department is that Mesa is going to stop the furloughs. They have had quite a bit of attrition this year. The problem is that they displaced senior people to the ERJ because they planned on furlouging to around 1,000. So guys from 970 global to a 1,000 got displaced because the junior guys were on a "planned furloughed list". These guys have just finished up their ground school and are about to go into the sim. If Mesa annouced today that they were stopping the furloughes they would have to put these senior guys back on the CRJ, they would have to retrain the junior guys on the ERJ and waste money. There is a clause in our contract that when you switch between certificates (Mesa to Freedom), you are seat locked for a year. Once these guys complete there CSI, then they can cancel the furlough and screw these guys. Basically they are being complete jacka$$es like usual. Typical Mesa.

SpiraMirabilis

there is no seat lock for involuntary displacement, except if you already are in one it carries over. and wouldn't they still be current on the CRJ? It hasn't been that long, has it?

They might have to go through YV indoc again though.

TurboFan

It's not a seat lock it's a certificate lock. It takes effect after completing CSI and lasts for one year from that date. Only applies to pilots transitioning between the Mesa and Freedom certificates and will affect the senior pilots essentially displacing them out of seniority if the furloughs are canceled.

Runky

This is the same thing they did with us when they displaced us from the CRJ to the Dash. There was some "planned furlough list" that had us being the 15 most junior pilots left, even though there were like 200 pilots junior to us still on the property at the time. They then changed their plan and decided not to furlough all 200 of them, but they left us on the dash because we had already started training. Then they changed their plan again, and decided to furlough all of us. So yes, Mesa will screw you badly if it makes things easier for them. What a company...

Drums4life

Not sure who told you that but the May furloughs are definitely happening, and that will pretty much put us right around 1000 pilots. The june furloughs might have been cancelled but that was only going to be about 10 more pilots.

winglet

Update:

MAG has filed a "Motion to Extend Time Motion for Order Extending the Time Periods During Which the Debtors Have the Exclusive Right to File a Plan and Solicit Acceptances".

These extensions are not abnormal in large Chapter 11 cases. MAG claims that the extensions are needed primarily due to the "size and complexity of the case" and "not a negotiation tactic".

They request an extension to filing a plan from May 5th to September 2nd. They have also requested to extend the Exclusive Solicitaion Period from July 6th to November 3rd.

The motion includes a good summary of their progress of reorganization:


(i) continue existing cash management systems,
(ii) maintain insurance programs,
(iii) pay certain prepetition claims of employees and maintain the related benefit programs,
(iv) pay certain prepetition claims of lienholders and foreign vendors,
(v) maintain existing customer programs, and
(vi) implement procedures relating to the protection of the Debtors’ valuable net operating loss tax attributes;

(i) abandoning 20 aircraft pursuant to a first day motion;
(ii) obtaining Court authorization to implement procedures regarding (a) elections under section 1110(a) and (b) of the Bankruptcy Code and (b) the rejection of aircraft related leases and abandonment of aircraft subject to security agreements;
(iii) negotiating 25 section 1110(b) stipulations with respect to 124 aircraft and 16 engines;
(iv) making 8 elections under section 1110(a) to perform under the related aircraft agreement with respect to 34 aircraft and 13 engines; and
(v) having served three notices of rejection for certain aircraft related agreements;

Established procedures for
(i) the settlement of reclamation claims filed pursuant to section 546 of the Bankruptcy Code,
(ii) the sale of certain de minimis assets, and
(iii) the settlement of certain general unsecured claims;

The Debtors have filed a motion (the “Delta Codeshare Motion”) to assume their codeshare agreement with Delta Airlines, Inc. (“Delta”), which motion is related to the resolution of certain prepetition litigation between the parties currently pending before both this Court and in the United States District Court for the Northern District of Georgia. The Debtors and Delta have already engaged in extensive discovery and are currently preparing for trial on the Delta Codeshare Motion, which trial is scheduled to take place on July 12, 2010 before this Court.

Filed the Debtors’ schedules of assets and liabilities and statements of financial affairs;

Continue to file the Debtors’ monthly operating reports;

Taken action where appropriate to enforce the automatic stay;

Established regular and frequent communications with numerous parties in interest, including the Creditors’ Committee, numerous aircraft vendors and lessors; and

Addressed numerous issues with their suppliers and vendors to ensure that the Debtors continue to operate in chapter 11."

winglet

InvertedLoop

Just look at the reserve coverage in every base it is all red. They can't afford to furlough anyone else. The may furloughs will be cancelled just wait and see. Email from Foley in about a week or two making it look like they are the good guy and saving peoples jobs, but really they are screwing the senior guys that got sent to the ERJ.

Releasemaster

Winglet,

What is the exclusive solicitation period?

Thanks

winglet

Releasemaster,

This is the period after the disclosure statement has been accepted by the court where the Debtor or proponents of the POR (plan of reorganization) are free to solicit acceptance of the plan. Creditors are also free to solicit rejection of the plan.

It's exclusive because only the Debtor (MAG) can submit a POR during the first 120 days after the bankruptcy petition is filed. After the deadline the Creditors can submit their plan. The court can grant an extension of up to 18 months. The exlusive period for solicitaion for acceptance of its plan is 180 days. This can either be reduced or extended by the court by up to 20 months! Extensions are normal for complex corporate bankruptcies.

winglet