Bankruptcy Restructuring Is Underway At Mesa Air Group | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 04.18.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 04.18.14 **
** Airborne 04.16.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 04.16.14 **
** Airborne 04.14.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 04.14.14 **

Wed, Jan 06, 2010

Bankruptcy Restructuring Is Underway At Mesa Air Group

Files Voluntary Chapter 11 Petitions, And Says Business Will Continue Unaffected

Mesa Air Group said Tuesday that it has commenced a financial restructuring through the voluntary filing of petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the “Court”). During the restructuring, the Company says it will continue to operate as normal, without interruption, which includes its code-share agreements with its partners US Airways, United Airlines and Delta Air Lines.

“Founded in 1982, Mesa has grown from a company operating a single seven passenger airplane into one of the largest independent regional air carriers. We were one of the first airlines to operate regional jets and pioneered the “revenue guarantee” business model – both now standards in the industry. In 2005, Mesa was named ‘Regional Airline of the Year’. After careful consideration, the Company determined that a Chapter 11 filing provides the most effective and efficient means to restructure with minimal impact on the business and our customers. This process will allow us to eliminate excess aircraft to better match our needs and give us the flexibility to align our business to the changing regional airline marketplace, ensuring a leaner and more competitive company poised for future success,” said Jonathan Ornstein, Chairman and Chief Executive of Mesa. “Over the past two years, we have worked closely with our lessors, creditors and other constituents to restructure our financial obligations. These efforts have led to the elimination of over $160 million of debt obligations, the return of a number of aircraft, and the restructuring of inventory management and engine overhaul agreements. We are nonetheless faced with an untenable financial situation resulting primarily from our continued lease obligations on aircraft excess to our current requirements. In addition, this action will give us the opportunity to reach a more timely conclusion in the litigation with Delta Air Lines in which Mesa is currently seeking damages in excess of $70 million.”

To ensure the Company operates without interruption, Mesa is seeking authority from the Court to continue all of its normal operations. The requests include authority to continue to pay employee salary and benefits, fulfill code-share partner agreements, honor customer programs, and pay vendors and suppliers for post-petition goods and services. These requests are standard and the Company anticipates receiving approval in the next few days. Vendor and supplier invoices incurred prior to the commencement of the Company’s Chapter 11 case that have not been paid will be resolved through the Company’s Plan of Reorganization which requires Court approval and has yet to be submitted.

“We remain committed to our partners and customers by providing continued low cost regional air service that has permitted Mesa to become a leading regional airline,” said Mr. Ornstein. “Our Company has ample liquidity to support itself during this process and we are confident we will emerge from Chapter 11 an even stronger operation. The foundation of our business – our people, operational integrity and values – remains intact, and the 20 plus years that many of us have worked together form a bond from which we will draw our strength as we face and overcome this challenge.”

FMI: www.mea-air.com/restructuring

Advertisement

More News

Airborne 04.18.14: SpaceX's Historic Pad, Sikorsky Going Presidential?, EAA B17

Also: Airmen Support Pilot's Son, Beyond The Blue!, More Wrong-Way SWA Fallout, Missing WWII Airman Comes Home NASA signed an agreement with Space Exploration Technologies Corporat>[...]

Aero-TV: Dual GPS Solutions -- Maps, Weather, And Traffic To Your EFB Devices

Dual Boasts GPS Support for iOS or Android Platforms While at the AOPA 2013 convention, ANN CEO and Editor-In-Chief, Jim Campbell met with Greg Lukins, Vice President of Business D>[...]

Airborne 04.18.14: SpaceX's Historic Pad, Sikorsky Going Presidential?, EAA B17

Also: Airmen Support Pilot's Son, Beyond The Blue!, More Wrong-Way SWA Fallout, Missing WWII Airman Comes Home NASA signed an agreement with Space Exploration Technologies Corporat>[...]

ANN's Daily Aero-Linx (04.19.14)

The Art Of Airsickness Bags Have you succumbed to the unbridled joy of Air Sickness Bag Collecting? Do you have vomit fever (or, fever-induced vomiting)? Are you ever considering b>[...]

ANN's Daily Aero-Term (04.19.14): Navigable Airspace

Airspace at and above the minimum flight altitudes prescribed in the CFRs including airspace needed for safe takeoff and landing.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC