Tag Archives: Mesa Air Group

Mesa Air Group emerges from Chapter 11 bankruptcy protection

Mesa Air Group (Phoenix) as expected, yesterday (March 1) emerged from Chapter 11 bankruptcy protection.

Mesa Air Group’s Plan of Reorganization became effective on March 1, allowing the company to emerge from its reorganization under Chapter 11 of the U.S. Bankruptcy Code. Mesa and its related subsidiaries entered bankruptcy protection on January 5, 2010 and Mesa’s exit from bankruptcy protection in 13 months places it among the fastest reorganizations in aviation history.

The Company’s restructuring accomplishments included:

  • Elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa’s balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt;
  • Restructuring of aircraft leases and financings for Mesa’s remaining CRJ200 and DHC-8 fleets resulting in flexibility, no long term lease exposure and lower costs on the CRJ200 50-seat regional jet aircraft;
  • Emerging as a private company that will issue four new series of notes, shares of common stock, and/or warrants to purchase shares of its common stock to its creditors in exchange for their claims in the Chapter 11 proceedings;
  • Extending the term of the code-share agreement with US Airways through September 2015.

Copyright Photo: Bruce Drum. Please click on the photo for additional information about the United Express-Mesa operation.

United Airlines (including Continental Airlines) North American Route Map (includes United Express routes): CLICK HERE

A new leaner Mesa Air Group prepares to exit Chapter 11

Mesa Air Group (Phoenix) is expected to emerge from Chapter 11 bankruptcy protection this week with US Airways as its major partner.

Read the full story from the Arizona Republic: CLICK HERE

Copyright Photo: Stephen Tornblom. Please click on the photo for additional information.

US Airways and Mesa Air Group extend their contract

US Airways (Phoenix) and the Mesa Air Group, Inc. (Phoenix) have announced they have reached an agreement in principle to extend their code share agreement covering 38 Bombardier CRJ900 aircraft for an additional term of 39 months to September 2015. Under the term sheet, Mesa Airlines, Inc., a wholly owned subsidiary of Mesa Air Group, will continue to provide regional jet service under the US Airways Express banner. The agreement is subject to approval by Mesa’s and US Airways Boards of Directors and the Bankruptcy Court overseeing Mesa’s restructuring.

Copyright Photo: Bruce Drum. Please click on photo for more background information.

Under the agreement Mesa will continue to provide US Airways Express service out of US Airways’ hubs in Phoenix, AZ and Charlotte, NC utilizing aircraft in Mesa’s current fleet.

Mesa Air Group proposes to make US Airways a part owner

Mesa Air Group (Phoenix) is proposing to issue 10 percent of its post-bankruptcy stock to US Airways in exchange for a new US Airways Express contract under its restructuring plan filed September 17 in the U.S. Bankruptcy Court in New York.

Read the full report from Bloomberg Businessweek:

CLICK HERE

Copyright Photo: Bruce Drum. Mesa’s Bombardier CRJ900 (CL-600-2D24) N919FJ (msn 15019) taxies to the runway at Charlotte.

Mesa Air Group will have to shrink in order to survive

Mesa Air Group (Phoenix) is reorganizing its company in Chapter 11 in order to reduce its costs. This will probably include downsizing and the loss of jobs. This article by the Arizona Republic examines in detail all of the issues facing the company.

Read the article:

CLICK HERE

Mesa Air Group files for Chapter 11 bankruptcy reorganization

Mesa Air Group (Phoenix) this morning (January 5) filed for Chapter 11 bankruptcy protection and reorganization. Mesa requested and received court approval to continue to operate its 700 daily flights. Mesa Airlines operates under contract as a Delta Connection, United Express and US Airways Express carrier with 130 aircraft.

Press release:

http://finance.yahoo.com/news/Mesa-Air-Group-Commences-bw-3392665865.html?x=0&.v=1

The filing does not impact the new go! Mokulele joint venture.

Press release:

finance.yahoo.com/news/go-Mokulele-Not-Included-in-bw-1865095162.html?x=0&.v=1

Go! adds Mokulele titles to its CRJ200 fleet

 

Copyright Photo: Ivan K. Nishimura. Bombardier CRJ200 (CL-600-2B19) N77278 (msn 7278) is pictured at Honolulu in the more subdued 2008 livery with the new joint titles.

Go! (iflygo.com) (Mesa Air Group) (Honolulu) is adding Mokulele titles to its Bombardier CRJ200 (CL-600-2B19) fleet.

 

As previously reported, last month Mesa Air Group and Republic Airways Holdings merged their competing subsidiaries, go! and Mokulele Airlines into a joint venture called go! Mokulele. Mesa’s 50-seat CRJ200s continued to operate inter-island services, supplemented by Mokulele’s Cessna 208B Grand Caravan turboprop aircraft. Shuttle America’s Embraer ERJ 170s, operated on behalf of Mokulele Airlines, were removed from Hawaii service. Mesa maintains a 75 percent share in the joint venture, with Republic holding the remaining 25 percent.

Republic to pull ERJ 170s out of Hawaii

Copyright Photo: Sun Valley Aviation.  Please click on photo for full view, information and other photos.

Copyright Photo: Sun Valley Aviation. Please click on photo for full view, information and other photos.

Republic Airways Holdings (Indianapolis) has answered our question of what they would do with the three Shuttle America (Indianapolis) Embraer ERJ 170s operating for subsidiary Mokulele Airlines in Hawaii. The holding company yesterday (October 13) announced that it had reached an agreement with Mesa Air Group (Phoenix) to form a joint venture (JV) to combine the jet routes currently flown by both Mesa (go!) and Republic (Mokulele). Under the agreement, Embraer ERJ 170 routes currently operated by Shuttle America (Republic Airways) will be transitioned to jet service provided by go! (Mesa Air Group). The three ERJ 170s will be returned to the mainland by November and will be operated in Republic Airways’ branded network (probably for either Frontier or Midwest).

Under the terms of the JV agreement, Mokulele shareholders will contribute their ownership of Mokulele to the JV and will own 25 percent of the new unnamed venture. Additionally, current Mokulele shareholders will be obligated to fund up to $1.5 million to capitalize the JV. Republic, which is the majority shareholder of Mokulele, will forgive Mokulele’s $3.1 million outstanding debt to Republic, net of surrendered aircraft deposits.

Here is the full press release from Republic Airways Holdings:

finance.yahoo.com/news/Republic-Airways-Forms-Joint-bw-794256419.html?x=0&.v=1

The press release by the Mesa Air Group states both the go! and Mokulele Airlines brands will continue under the JV. Therefore both airlines will continue to operate under their brands although it unclear what aircraft Mokulele Airlines will operate.

finance.yahoo.com/news/Mesa-Announces-Joint-Venture-prnews-1012591534.html?x=0&.v=1

Mesa Air Group reports $1.7 m 3Q net profit

Copyright Photo: Bruce Drum.  Please click on photo for full view, information and other photos.

Copyright Photo: Bruce Drum. Please click on photo for full view, information and other photos.

Mesa Air Group (Phoenix) reported a fiscal third quarter net profit of $1.7 million.

Press release:

finance.yahoo.com/news/Mesa-Air-Group-Reports-Third-prnews-1336145113.html?x=0&.v=1