muushin

Chapter 11 May Not Work This Time
Chapter 11 may not be an option during this economic crisis, according to analysts who think the capital to fund restructuring and exit bankruptcy will not be there since airlines are such a poor investment. This coupled with creditors, seeing the writing on the wall, forcing the sale of assets, does not bode well for Mesa which said that if Delta’s contract with Freedom is actually cancelled it could force a Chapter 11 filing by mid-July. The industry has already seen numerous carriers eliminated such as Aloha which went directly to Chapter 7 recently.
Mesa was also notified on May 22 that it does not comply with NASDAQ filing requirements for continued listing and could be "de-listed" from The NASDAQ Global Select Market. It has requested a hearing before a NASDAQ Listing Qualifications Panel to review the Staff Determination. The Notice arises as a result of Mesa's failure to timely file its Form 10-Q for the quarter ended March 31, 2008.

hdale

Your obsession with Mesa is unhealthy! Feel free to chime in on any of the other thousands of posts on APC!

flyboyzz1

plus didn't they just post a profit

ScreamingEmu

That and the title is extremely misleading. Maybe throw a question mark on the end of it so that everybody doesn't think that it already happened.

paxhauler85

Old news.

Go to yahoo finance and read the transcript of our earnings call.

Educate yourself, then post.

And yes, we did post a small profit.

The Chow

you know, if JO pulls this off, he will become the foremost expert in how to run an airline in trying time.

saabguy493

He is still an a...h....

iahflyr

Let me be clear. Mesa did not report an operating profit. They reported an operating loss for the 1st quarter 2008 as they have for several quarters in a row now. Here is a copy of what I posted on another thread.



You are right. Creative accounting. They are accounting for a one time gain of 27.5 million dollars related to the Hawaiian lawsuit that Mesa lost. They posted a bond for $80 million, and only had to pay $52.5 million, so they are counting the 27.5 million dollars as a profit. Gotta love Mesa. It's funny because they never included the $80 million dollars in any of their quarterly losses, but they can suddenly report this 27.5 million dollars as income.

The bottom line is Mesa has had an operating loss for many quarters in a row now, and the most important fact is their unrestricted cash position, which is down to only $55 million dollars. In the airline industry, cash is time. Therefore, Mesa does not have very much time. BTW, that $55 million was over 90 days ago (back when oil was still $100/barrel). My guess is their cash position is much lower than that. Now let's wait and see what happens with their Delta contract. The end is near.

asj410

Amen. The guy helped cause the biggest mass layoffs in Hawaii's history when Aloha went down. It sucks even more because I was part of it. Glad to read that go! is still reporting losses and only 70% LF!

G-Dog

I listened to their 2Q earning call that took place yesterday. I found it odd that they had a 2Q earnings call before they have released their 1Q filing. Anyway, someone asked JO what their cash is on the balance sheet and JO could not answer at the advice of his lawyers. Played it off as he would have to put out another press release to disclose the info. I laughed when I heard that. That means you have no cash, that is how I read it.