Mesa Asks for Employee Wage Cuts

Aviation International News » January 2003
January 9, 2008, 4:46 AM

Phoenix-based Mesa Air Group has asked its employees to accept a voluntary 5-percent pay cut for one year in return for an incentive program tied to quarterly profits. The appeal coincided with 20-percent salary reductions for chairman and CEO Jonathan Ornstein, president Mike Lotz and executive vice president Peter Murnane. According to SEC filings, the three top executives’ base pay equals $200,000, $175,000 and $150,000, respectively. Mesa has also instituted a one-year salary freeze for all other management.

Under the voluntary pay reduction, employees would receive the full amount of their pay reduction, plus an equal amount as a bonus, during each quarter the company registers an operating profit. A similar program started by Mesa following 9/11 paid employee bonuses in each of its four quarters and resulted in a 7.5-percent net pay increase to participating employees.

The move follows a reported loss of $9.3 million during Mesa’s fiscal year ending September 30. Last year the airline lost $48 million.

Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.