Tag Archives: Mesa Airlines

United to acquire 100 electric 19-seat ES-19 airliners from Heart Aerospace

United Airlines Ventures (UAV) has announced it, along with Breakthrough Energy Ventures (BEV) and Mesa Airlines, has invested in electric aircraft startup Heart Aerospace.

Heart Aerospace is developing the ES-19, a 19-seat electric aircraft that has the potential to fly customers up to 250 miles before the end of this decade. In addition to UAV’s investment, United Airlines has conditionally agreed to purchase 100 ES-19 aircraft, once the aircraft meet United’s safety, business and operating requirements.

 

 

Mesa Airlines, United’s key strategic partner in bringing electric aircraft into commercial service, has also agreed to add 100 ES-19 aircraft to its fleet, subject to similar requirements.

UAV is building a portfolio of companies that focus on innovative sustainability concepts and create the technologies and products necessary to build a carbon-neutral airline and reach United’s net-zero greenhouse gas emissions goals. With this new agreement, United is deepening its bold commitment to reduce its greenhouse gas emissions 100% by 2050 without relying on traditional carbon offsets, as well as enabling the growth of Heart Aerospace and participating in the development of aircraft that will reduce greenhouse gas emissions from flying.

Mock-up of the cabin:

UAV and BEV are among the first investors in Heart Aerospace, demonstrating confidence in Heart’s design and creating potential for Heart to fast track the ES-19 introduction to market as early as 2026.

By utilizing electric motors instead of jet engines, and batteries instead of jet fuel, Heart’s ES-19 aircraft will have zero operational emissions. Seating 19 passengers, the ES-19 aircraft will also be larger than any of its all-electric competitors and will be designed to operate on the same types of batteries used in electric cars.  Once operational, the ES-19 could operate on more than 100 of United’s regional routes out of most of its hubs. Some of these routes include Chicago O’Hare International Airport (ORD) to Purdue University Airport (LAF) and San Francisco International Airport (SFO) to Modesto City-County Airport (MOD).

Once operational, Heart’s ES-19 could give customers access to the convenience of flight without contributing to carbon emissions that cause climate change.

 

Mesa Air Group reports fourth quarter and full-year fiscal year 2020 profit

Mesa Air Group, Inc. reported fourth quarter and full-year fiscal 2020 financial and operating results.

Fiscal 2020 Q4 Highlights

  • EPS of $0.32, Full Year $0.78
  • Year-end cash increased by $34.5 million to $99.4 million

Recent Updates

  • Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term
  • Commenced cargo operations for DHL with two Boeing 737-400F 
  • Added 10 new E175 aircraft to our United fleet in November and December
  • Entered into a $195 million loan under the CARES Act with the U.S. Treasury 

Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR1 was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.

Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.

Full Year

Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income1 was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.

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1 See Reconciliation of non-GAAP financial measures

Operationally, we ran a 99.9% controllable completion factor compared to 99.4% in 2019 and a 94.8% total completion factor, which includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations and flights, compared to 97.0% in 2019.

We are providing the following Block Hour and Pass-Through Maintenance Expense Guidance going forward:

BLOCK HOURS Q1 Q2 Q3 Q4
FY2020 Actuals 115,562 108,305 31,622 57,622
FY2021 Guidance 68,000 73,000 * *

 

PASS THROUGH MTC Q1 Q2 Q3 Q4 Total
FY2020 Actuals 7.4 9.1 (2.5) 9.3 23.3
FY2021 Guidance 15.0 13.0 7.0 5.0 40.0

*to be provided in subsequent quarters

United Express-Mesa Airlines Embraer ERJ 170-200LR (ERJ 175)  N85373 (msn 17000865) FLL (Andy Cripps). Image: 952304.

Above Copyright Photo: United Express-Mesa Airlines Embraer ERJ 170-200LR (ERJ 175) N85373 (msn 17000865) FLL (Andy Cripps). Image: 952304.

United Express-Mesa slide show:

Mesa to operate 40 Bombardier CRJ900s for American for another 5 years

Mesa Air Group, Inc. announced las month that it has finalized a new contract, which replaces the previous agreement with American Airlines, to operate 40 Bombardier CRJ900s for a five-year term beginning January 1, 2021 through December 31, 2025.

Under the previous contract 30 CRJ900 aircraft were set to expire in 2021 with an additional 17 expiring in 2022.

American Eagle-Mesa aircraft photo gallery:

American Eagle-Mesa aircraft slide show:

Mesa Air Group signs five-year cargo contract with DHL Express, will add Boeing 737-400Fs

Mesa Air Group has made this announcement:

  • Adding two Boeing 737-400F to fleet
  • Five-year contract with service scheduled to start October 2020
  • Opening a new crew and maintenance base in Cincinnati

Mesa Air Group, Inc. has announced plans to begin providing air cargo service for DHL Express with Boeing 737-400F cargo aircraft.


Under the agreement, Mesa will operate two cargo aircraft from DHL Express Americas global hub at Cincinnati/Northern Kentucky International Airport for a five-year term. The company will lease the aircraft from DHL with the first scheduled to be in service this October.

Mesa Air Group adds new aircraft, extends contract with United Airlines

Mesa Air Group has made this announcement:

  • Adding 20 new Embraer E175 LL aircraft under a 12-year capacity purchase agreement
  • Extension on 42 United-owned Embraer E175s for five years
  • Existing 20 CRJ-700 aircraft to be leased to another United Express carrier

Mesa Air Group, Inc. has announced it will add 20 new Embraer E175 LL aircraft to its United Express fleet. The aircraft will be owned and financed by Mesa and be covered under a 12-year capacity purchase agreement. The E175 LL features 70 seats in a three-class configuration. Deliveries are scheduled to begin May 2020 and expected to be completed by the end of 2020.

The parties are also extending the contract for 42 E175s for an additional five years. The aircraft, which are owned by United, are now contracted through the end of 2024 with rights to extend through 2027. The 18 Mesa-owned E175s are contracted through 2028.

The transaction will result in Mesa’s United Express operation becoming all Embraer 175 aircraft with long-term contracts and, following the new deliveries, an average age of 3.7 years. The company also expects the shift to a single fleet type to improve utilization of crew and maintenance resources across its United Express system.

In connection with the deal, Mesa’s 20 Bombardier CRJ700 aircraft will be leased to another United Express carrier (GoJet) for a term of seven years.

Airline Color Scheme - Introduced 2010 (Continental 1991)

Above Copyright Photo: United Express-Mesa Airlines Embraer ERJ 170-200LR (ERJ 175) N87303 (msn 17000398) CLT (Jay Selman). Image: 403608.

United Express-Mesa aircraft slide show:

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 147 cities in 47 states, the District of Columbia, Canada, Mexico, Cuba and the Bahamas. As of November 30th, 2019, Mesa operated a fleet of 145 aircraft with approximately 749 daily departures and 3,400 employees. Mesa operates all of its flights as either American Eagle or United Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc. and United Airlines, Inc.

Route Map:

Mesa Airlines is now operating two Bombardier CRJ900s in this generic in-house livery

Now in a generic in-house livery, ex American Eagle

Mesa Airlines is now operating at least two Bombardier CRJ900s in an all-white fuselage condition with its updated 2015 logo on the tail.

The CRJ900s are based at Dallas-Fort Worth International Airport (DFW) and mainly operated for American Airlines.

The pictured N942LR was previously painted in the full American Eagle livery.

Mesa has partnered with the American Airlines brand since its first codeshare agreement with America West in 1992 and later with US Airways. Today, the Company operates 64 CRJ900 and 1 CRJ200 aircraft for American. Mesa operates two bases in DFW and Phoenix (PHX) for the AA contract.

However the lack of American Eagle markings allows Mesa to operate the aircraft on their own charters and as back-up aircraft for its customers.

Mesa operates for American Airlines and United Airlines.

Top Copyright Photo: Mesa Airlines Bombardier CRJ900 (CL-600-2D24) N942LR (msn 15042) DFW (Brian Peters). Image: 946243.

Mesa Airlines aircraft slide show:

Route Map:

Mesa Air Group announces commencement of IPO

Mesa Air Group, Inc. has announced the commencement of its initial public offering (IPO) of 10,700,000 shares of its common stock, at an anticipated initial public offering price between $14.00 and $16.00 per share, pursuant to a registration statement on Form S-1 previously filed with the U.S. Securities and Exchange Commission (SEC). The Company and the selling shareholders named in the registration statement granted the underwriters a 30-day over-allotment option to purchase up to an additional 1,605,000 shares of the Company’s common stock. If the overallotment option is exercised in full, 938,333 shares will be purchased directly from the Company, and 666,667 shares will be purchased directly from the selling shareholders. The Company has been approved to list its common stock on the Nasdaq Global Select Market (Nasdaq) under the symbol “MESA,” subject to official notice of issuance.

The Company intends to use the net proceeds from the offering received by it to repay certain outstanding indebtedness, to pay fees and expenses related to the offering and the remainder for general corporate purposes. The Company will not receive any proceeds from the offering of the common stock by the selling shareholders.

Raymond James and BofA Merrill Lynch are acting as lead book-running managers for the proposed offering. Cowen, Stifel and Imperial Capital are acting as additional book-running managers for the proposed offering.

This offering will be made only by means of a written prospectus.

Mesa Air Group is the parent of Mesa Airlines.

All images by Mesa.

Mesa Airlines expands its E175 agreement with United Airlines

United Express-Mesa Airlines Embraer ERJ 170-200LR (ERJ 175) N84307 (msn 17000419) IAD (Brian McDonough). Image: 929957.

Mesa Airlines, Inc. (Phoenix) has announced the expansion of its agreement with United Airlines (Chicago) to operate three additional Embraer 175 aircraft, bringing the total number of United Express aircraft operated by Mesa to 68. In October, the Company announced an agreement for the addition of 15 new aircraft scheduled for delivery in 2016, which has now increased to 18. Mesa currently operates 30 Embraer E175 aircraft and 20 Bombardier CRJ700 aircraft under the United Express brand.

 

The E175’s 76-seat dual-class configuration features 12 First-Class, 16 Premium Economy and 48 Coach seats. The aircraft has Inflight Wi-Fi connectivity, leather seating and electric outlets in First Class.

Mesa Airlines currently operates as American Eagle from hubs in Phoenix and Dallas/Fort Worth and as United Express from Washington Dulles and Houston. Founded on a mesa in New Mexico in 1982 by Larry and Janie Risley, Mesa currently operates 115 aircraft, with more than 530 daily system departures to 103 cities, 38 states, the District of Columbia, Canada and Mexico.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N84307 (msn 17000419) departs from United’s Washington Dulles International Airport hub.

United Express-Mesa aircraft slide show: AG Airline Slide Show

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American Eagle to fly the Chicago O’Hare – Albany, NY route

American Eagle (2nd)-Envoy Bombardier CRJ700 (CL-600-2C10) N536EA (msn 10315) DCA (Brian McDonough). Image: 930109.

American Airlines (Dallas/Fort Worth) is adding American Eagle (operated by Envoy Air) Bombardier CRJ700 jet service from the Chicago (O’Hare) hub to Albany, New York starting on March 3, 2016.

In other news, Mesa Airlines will expand American Eagle services from the Phoenix hub to Lubbock, Memphis, Midland/Odessa and Roswell starting on March 3, 2016 per Airline Route.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Envoy Air’s Bombardier CRJ700 (CL-600-2C10) N536EA (msn 10315) arrives in Washington at Reagan National Airport (DCA).

American Airlines aircraft slide show (current livery): AG Airline Slide Show

American Eagle-Envoy Air aircraft slide show: AG Airline Slide Show

AG Prints-Lustre-Glossy-Matte-Metallic

Mesa Airlines to add 15 Embraer 175s to the United contract

Mesa Airlines, Inc. (Phoenix) has announced an agreement with United Airlines (Chicago) to add 15 Embraer 175 aircraft to Mesa’s United Express fleet. Mesa currently operates 30 Embraer aircraft for United Airlines. In addition to the E175s, Mesa operates 20 Bombardier CRJ700 aircraft under the United Express brand.

 

The E175’s 76-seat dual-class configuration features 12 First-Class, 16 Premium Economy and 48 Coach seats. The aircraft has Inflight Wi-Fi connectivity, leather seating and electric outlets in First Class.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Mesa Airlines’ Embraer ERJ 170-200LR (ERJ 175) N85320 (msn 17000454) arrives at Washington Reagan National Airport (DCA).

United Express-Mesa aircraft slide show: AG Airline Slide Show

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