Mesa eyeing 737-300s ?!?

[hawkerflyer]

ATWonline is reporting that JO thinks the economics of used 733s on the East Coast can undercut Jetblue by 20%. Just when I think I've heard it all, the hits just keep on coming... Let the bloodbath begin...

 

[Av8tor]

Are they kidding me!!!


Mesa Air Group eyes prospects for 737-300s
Dateline: Tuesday March 02, 2004

Mesa Air Group CEO Jonathan Ornstein said the company is looking at the possibility of operating leased 737-300s sometime in the future that most likely would fly in East Coast markets.

In wide-ranging remarks at Mesa's annual financial conference in Telluride, Ornstein explained that "the economics of used narrowbodies are pretty remarkable. A 737-300 could be operated at costs 20% below JetBlue." Mesa also is looking at Embraer 170s/190s.
The airline currently operates a fleet of 162 aircraft that include both Embraer and Bombardier regional jets in codeshare relationships with United Airlines, America West Airlines and US Airways. Mesa, launch customer for the 86-seat CRJ900, operates 13 of them for AWA with plans to increase that to 38. Ornstein said the six 64-seat CRJ700s currently flown for AWA will be shifted into service for United.

He acknowledged that United and US Airways are facing financial struggles but said, "I view some of our partners' issues as fixable. They need to restructure their costs." At the same time, he reiterated his interest in buying some of the assets of US Airways, such as slots at New York LaGuardia, if that carrier were to sell. "Mesa could be a low-cost provider in that market."

Ornstein also predicted consolidation of some of the "major players" in the industry but doesn't believe it will impact Mesa negatively. "What protects Mesa [is] we've become an attractive partner to do business with because of our costs," he said. "We always talk to everybody in the industry. Our RJ fleet would become very attractive."--Sandra Arnoult

www.atwonline.com

 

[Hugh Jorgan]

AV8TOR....

You have the best avatar since Stillaboo.

 

[stillaboo2]

AV8TOR....

You have the best avatar since Stillaboo.

For you Hugh, anything!

Sorry to interrupt the Mesa bash-fest!

 

[mckpickle]

AHHHHHHHHHH Christ. I can't wait to see what they'll fly them for. ANd I bet their crews will still come to my airplane to steal crew meals.

 

[~~~^~~~]

The problem is the marginal costs. Obvioulsy old 737's made money in the past ( Southwest ) however, the coming fuel crunch and even current fuel prices make the E170 a much more attractive airplane.

But, compared to a 50 seat RJ, the old 737's are competitive.

 

[AT7^DRIVER]

I'll believe it when I see it. Ornstein can barely get financing on a few RJs let alone a fleet of 737s or 170s.

 

[~~~^~~~]

737's can be bought for 3 million. That is their cost advantage over a 21 million dollar RJ. With so many 737's hitting the market from Southwest and US Air I imagine lease rates are very, very, low.

Just like Airtran's first bunch of DC-9's from Delta.

 

[jrcpilot]

Thats correct. The used airplane market is in the dump and operators could pick up airplanes at a bargain right now. The X factor is the operational costs later down the road. Yeah they may work right now but these jets and their MTC requirements escalate pretty quick. The other X-factor is the pilots. We are our own worst enemies. What scares me is that if the Mesa pilots do stand up and resist the temptation, what can stop JO from going outside and partnering up with another entity to fly the jets. Where there is a will there is a way and that guy will find it.


The race to the bottom continues

 

[Av8tor]

AV8TOR....

You have the best avatar since Stillaboo.

Thanks!!! I thought it was funny too!!