Mesa Airlines
- Thread starter 700UW
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Look at the Mesa Air 10-K for the year ending September 2003 (http://edgar.sec.gov). That contains full information about what they were paid by US Airways under their jet contract and how many ASMs they flew for US Airways for that money. That allows you to calculate a RASM for Mesa under that contract.
It does very little good to be unhappy about what Mesa is doing for US Airways. They fly 59 RJs for US Airways. Where is US Airways going to get the money to replace those, even if management were so inclined?
You can bolt the door if you like, but that horse is long gone.
It does very little good to be unhappy about what Mesa is doing for US Airways. They fly 59 RJs for US Airways. Where is US Airways going to get the money to replace those, even if management were so inclined?
You can bolt the door if you like, but that horse is long gone.
the turtle
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you didn't. in general, mesa bashing is a favorite pastime around here. i was simply making light of that. any question regarding mesa eventually becomes a gripe session. ok?700UW said:
i can't. exactly. what i can do, by supposition, is this. mesa was the low-ball offer for united flying after the aca bomb was dropped. the fees were announced, minus the names, and the lowest one was around $2550 if i remember correctly(i'm certain someone would search..i don't have the time), jo stated in one of his ceo "hotlines" around that time that he was very interested in recapturing the "lost" ual flying and mesa's offer to ual would be as competitive as that which uair enjoys. lastly, in a conference call regarding the failed aca merger jo stated within a couple hundered dollars the ual fee...i believe he said "around 2700"...to a question about uair, but i wasn't taking notes.
however, if i were a betting man, i would say it's closer to 2500 than 3000.
MESA 10Q 6/30/03
The financial arrangement between Mesa Air Group and its code-share partners involve either a revenue-guarantee or pro-rate arrangement. Under a revenue-guarantee arrangement, the major airline generally pays a monthly guaranteed amount. The America West, US Airways regional jet and Frontier JetExpress code-share agreements are revenue-guarantee flying agreements. Under the terms of these flying agreements, the major carrier controls marketing, scheduling, ticketing, pricing and seat inventories. The Company receives a guaranteed payment based upon a fixed minimum monthly amount plus amounts related to departures and block hours flown plus direct reimbursement for expenses such as fuel, landing fees and insurance. Among other advantages, revenue-guarantee arrangements reduce the Company’s exposure to fluctuations in passenger traffic and fare levels, as well as fuel prices. The US Airways turboprop code-share agreement is a pro-rate agreement.
Plus-
(1) Lease payments on aircraft flown pursuant to our guaranteed-revenue agreements are reimbursed by the applicable code-share partner.
Cost Plus- Hard to lose money with this contract. I wonder who's paying for it? Just think? Mesa can keep buying back there stock, then issueing more and more stock options to the fat cats on the board and the executives. I would venture to say they will be shopping for a new Public Accounting firm soon. With these financial gurus, Arthur Anderson could formulate a brand new Derivitive Investment stratgy for the Exec's at MAG and U to increase the profit potential, for a while.
The financial arrangement between Mesa Air Group and its code-share partners involve either a revenue-guarantee or pro-rate arrangement. Under a revenue-guarantee arrangement, the major airline generally pays a monthly guaranteed amount. The America West, US Airways regional jet and Frontier JetExpress code-share agreements are revenue-guarantee flying agreements. Under the terms of these flying agreements, the major carrier controls marketing, scheduling, ticketing, pricing and seat inventories. The Company receives a guaranteed payment based upon a fixed minimum monthly amount plus amounts related to departures and block hours flown plus direct reimbursement for expenses such as fuel, landing fees and insurance. Among other advantages, revenue-guarantee arrangements reduce the Company’s exposure to fluctuations in passenger traffic and fare levels, as well as fuel prices. The US Airways turboprop code-share agreement is a pro-rate agreement.
Plus-
(1) Lease payments on aircraft flown pursuant to our guaranteed-revenue agreements are reimbursed by the applicable code-share partner.
Cost Plus- Hard to lose money with this contract. I wonder who's paying for it? Just think? Mesa can keep buying back there stock, then issueing more and more stock options to the fat cats on the board and the executives. I would venture to say they will be shopping for a new Public Accounting firm soon. With these financial gurus, Arthur Anderson could formulate a brand new Derivitive Investment stratgy for the Exec's at MAG and U to increase the profit potential, for a while.
the turtle
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funny, i thought you were a businessman. if you don't know what the difference is between $3000 and $2700, multiplied by the number of flights mesa flies daily, then i can not help you.PineyBob said:
Mr. Piney is a businessman, a very hard working fellow from my observations. Most readers of this forum realize the difference between 2550.00 and 3000.00 in this industry or any business. Generalities are made for politicians and salesmen. Concrete numbers in cost plus contracts are what exec's and Board members give themselves stock options on, and in which customers fund through ticket purchases. U's contract prowess is legendary in the airline industry. Warren Buffet's assessment of U wasn't salesmanship. These contracts are a glaring example of a BOD with a questionable agenda or ignorance.
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