Continental Seen Giving Mesa Business

[ASAFOE120]

AP
Continental Seen Giving Mesa Business
Thursday December 29, 9:45 am ET Continental Seen Giving Business Pulled From ExpressJet to Mesa, Republic, SkyWest
NEW YORK (AP) -- Mesa Air Group Inc. shares jumped in early trading on Thursday after Continental Airlines Inc. said it plans to pull 69 of 274 jets from its contract with ExpressJet Holdings Inc.
Raymond James analyst James Parker said ExpressJet's loss could be a boon for regional carriers such as Mesa, SkyWest Inc. and Republic Airways Holdings Inc.
"Republic, Mesa, and Trans States, a privately owned carrier, all operate 50-seat Embraer RJs and could operate all or a portion of the 69 RJs. SkyWest, which operates Canadair RJs but not ERJs, may also bid on some or all of these aircraft."
Parker upgraded his rating on Mesa and Republic to Outperform, and reiterated his Outperform rating on Skywest.
Shares of Mesa were up by 42 cents, or 4.2 percent, to $10.47 in early trading on the Nasdaq, while Republic Airways shares were trading at up 35 cents, or 2.4 percent, at $14.85. SkyWest shares added 51 cents, or 2 percent, to traded at $27.36.
http://biz.yahoo.com/ap/051229/mesa_mover.html?.v=2

 

[Draginass]

Basic proof that the regional carriers are basically just small jet vendors, not real airlines. The nosedive of the industry has finally come to the regional airplane market.

 

[pilotkppsg]

Fuggin' Chuck Norris

 

[Mike man]

CHQ will most likely not bid on this. CHQ does not want any more 50 seat flying and they have sold 7 145's already.

 

[relief tube]

very good point. the fellas I know at Chq say their CEO sees the future in 70 seaters, as we all know right now that 50 seat flying with gas the way it is isn't that cool as it once was.

Like everyone else, I really hope Mesa doesn't get it. That crappy contract and payscales has messed up enough already.

 

[Paul R. Smith]

very good point. the fellas I know at Chq say their CEO sees the future in 70 seaters, as we all know right now that 50 seat flying with gas the way it is isn't that cool as it once was.

quote]

We'll see in 9 months.