Mesa buys PSA

[Taco Rocket]

1. Mesa declares bankruptcy (done).
2. Gets rid of all ERJs, -200s, Dash-8s.
3. Left with 53 aircraft: all -700s and -900s (~13 with UA, balance with US), all in place with financing and utilization.
4. Furloughs down to ~500 pilots, kills Freedom, cuts off F8 management.
5. Lowers costs another ~20% with re-negotiated leases, less overhead, etc.
6. Collects about half or more of the $70M it is suing DL for (Freedom) in BK court (Delta settles to end pain in ass relationship).
7. Exits bankruptcy with over $100M in cash (new stock issuance + current cash + good cash flow).
8. Makes Parker a deal for contract extension of current -900 flying at lower cost (Mesa most competitive regional now after BK), which...
9. involves a takeover of PSA, thus injecting ca$h into US, takes pain in ass airline and Express division out of US' hands (again lowering US' costs while accepting a "partner's" "investment").
10. Mesa "Regional Airline of the Year" 2011.

 

[CX880]

Mesa has been the most competitive regional before BK. Look at where that got them. Your predictions are only good up till 4.

 

[Taco Rocket]

The market for 50 (and under) seats is done. The regional airlines in trouble are all stuck with these aircraft in a declining market.

That is what happened to Mesa. Mesa is in bankruptcy because it expanded rapidly with now (economically) obsolete aircraft and could not dump them when the market began to turn, and fuel prices began to rise. Cost competitiveness is not in this analysis because it plays little to no role when attempting to dump leases. Bankruptcy does.

50 seat competitors are now paying their "partners" for the right to fly for them, or are underbidding each other for money-losing flying. Or now assuming marketing and/or fuel cost risks that a regional didn't have to 10 years ago. These companies are just doing what Mesa did five years ago: getting a contract, any contract, to tread water and keep making payments. But these companies can tread water only for so long: they will get shafted by their cash-starved "partners" in future mergers or downsizings.

It's a buyers' market and the majors hold all the cards (unless you have the balls to grow into a major on your own -- another strategy). When the music stops on this side of the industry if you do not have 70 or 90 seat+ aircraft your company is done. Mesa knows this and is using bankruptcy to position itself ahead of the curve.

 

[ePilot22]

1. Mesa declares bankruptcy (done).
2. Gets rid of all ERJs, -200s, Dash-8s.
3. Left with 53 aircraft: all -700s and -900s (~13 with UA, balance with US), all in place with financing and utilization.
4. Furloughs down to ~500 pilots, kills Freedom, cuts off F8 management.
5. Lowers costs another ~20% with re-negotiated leases, less overhead, etc.
6. Collects about half or more of the $70M it is suing DL for (Freedom) in BK court (Delta settles to end pain in ass relationship).
7. Exits bankruptcy with over $100M in cash (new stock issuance + current cash + good cash flow).
8. Makes Parker a deal for contract extension of current -900 flying at lower cost (Mesa most competitive regional now after BK), which...
9. involves a takeover of PSA, thus injecting ca$h into US, takes pain in ass airline and Express division out of US' hands (again lowering US' costs while accepting a "partner's" "investment").
10. Mesa "Regional Airline of the Year" 2011.

#7 makes me laugh. 100 Million Dollars. Don't stop with PSA, Mesa should buy and rule the world!






eP.

 

[ePilot22]

The market for 50 (and under) seats is done.

You really are stupid.





eP.

 

[ePilot22]

That is what happened to Mesa. Mesa is in bankruptcy because it expanded rapidly with now (economically) obsolete aircraft and could not dump them when the market began to turn, and fuel prices began to rise. Cost competitiveness is not in this analysis because it plays little to no role when attempting to dump leases. Bankruptcy does.

So why is it ONLY Mesa in BK? According to you, everyone from Great Lakes to SkyWest should be bankrupt.





eP.

 

[ePilot22]

50 seat competitors are now paying their "partners" for the right to fly for them, or are underbidding each other for money-losing flying. Or now assuming marketing and/or fuel cost risks that a regional didn't have to 10 years ago. These companies are just doing what Mesa did five years ago: getting a contract, any contract, to tread water and keep making payments. But these companies can tread water only for so long: they will get shafted by their cash-starved "partners" in future mergers or downsizings.

It's a buyers' market and the majors hold all the cards (unless you have the balls to grow into a major on your own -- another strategy). When the music stops on this side of the industry if you do not have 70 or 90 seat+ aircraft your company is done. Mesa knows this and is using bankruptcy to position itself ahead of the curve.

Actually CASH is king. Mesa is missing that piece of the puzzle. They are dumping their lease and SCREWING their creditors. That'll make it harder for them to get financing to acquire larger aircraft later on.

But good luck and keep drinking the kool-aid.





eP.

 

[Metro752]

Don't upset this A-lister. P-dubs where are you, your Freedumb buddies are here!

 

[sniper]

Actually CASH is king. Mesa is missing that piece of the puzzle. They are dumping their lease and SCREWING their creditors. That'll make it harder for them to get financing to acquire larger aircraft later on.

But good luck and keep drinking the kool-aid.



Very possible with new management in place running Mesa

BTW

How many aircraft NWA, UAL, DAL, USAIR Dumbed during BK and how many new they bought

 

[sniper]

So why is it ONLY Mesa in BK? According to you, everyone from Great Lakes to SkyWest should be bankrupt.





Skywest has better management
Eagle, AMR has the cash
Coex mama CAL has the leases
PSA mama USAIR has the leases
Comair mama DAL did that already
Republic mama Wexford has a lot of money and it shows.