Phoenix-based Mesa Air Group has signed a memorandum of understanding to enter a new fleet management program with Pratt & Whitney Canada that would include the sale of “certain assets” related to its Desert Turbine Services unit and spare PT6 engines. The tentative six-year deal covers 58 Beech 1900Ds and 116 engines, valued at some $70 million. “The agreement gets Mesa out of the engine maintenance business and allows us to focus on running our airline,” said Mesa president and COO Mike Lotz. “We no longer have to worry about any surprises on the engine maintenance side of our business. No matter what happens now to our PT6 engines, our costs are always known.” Mesa chairman and CEO Jonathan Ornstein has long complained of the rising cost associated with the airline’s Beech 1900 fleet, particularly those attributable to engine overhauls.
Regionals Update: Mesa to sell maintenance assets to Pratt & Whitney Canada
- May 15, 2008, 8:39 AM