CCAir president Carter Leake last month notified his employees that parent company Mesa Air Group planned to close the money-losing regional airline on July 1. Leake’s memo arrived on the same day as Mesa’s latest contract proposal to CCAir’s pilots. The pilots rejected a previous proposal.
Less than nine months into a pro-rate code-share contract with Frontier Airlines that called for the introduction of seven Bombardier CRJs into the Frontier system by year-end, Mesa Air Group has begun to curtail its relationship with the Denver-based low-fare carrier as a lingering environment of razor-thin yields has resulted in “less than satisfactory” returns for Mesa, according to a company official.
Mesa Air Group plans to shed its Air Midwest subsidiary by the end of this year’s third quarter, company CEO Jonathan Ornstein said last month during the company’s quarterly earnings briefing.
Mesa Air Group has hired celebrated attorney Daniel Petrocelli and asked for a new trial after U.S. Bankruptcy Court Judge Robert Faris ruled that Mesa must pay Hawaiian Airlines $80 million for misusing proprietary information it obtained during a failed attempt to participate in Hawaiian’s bankruptcy restructuring. Petrocelli, who represented the family of Ron Goldman in the civil trial against O.J.
The U.S. Bankruptcy Court District of Hawaii yesterday ruled in favor of Hawaiian Airlines in its lawsuit against Phoenix-based Mesa Air Group, awarding $80 million in damages and ordering Mesa to pay all of Hawaiian’s legal costs and “reasonable” lawyer fees. Hawaiian had asked for $173 million and an injunction barring Mesa from operating Go! for a year, a request Judge Robert Faris rejected.
Given one last chance to agree to pay cuts or risk the death of their airline, the pilots of CCAir finally blinked on April 29, when 72 percent of the Charlotte, N.C.-based airline’s remaining 108 active pilots voted in favor of a new five-year labor deal fashioned by parent company Mesa Air Group.
MD Helicopters has requested a concessionary renegotiation of the land leases for its main plant and offices at Falcon Field in Mesa, Ariz. The company made the petition to the City of Mesa in July after the rent on most of its 46-acre site automatically doubled during the last year under terms of the leases, first signed in 1983 when the company was known as Hughes Helicopters.
Mesa Air Group expected three of its Bombardier CRJ200s to enter service with the newly christened KunPeng Airlines by the end of this month. All three airplanes came from Mesa’s U.S. fleet, from which it continues gradually to shed 50-seat jets and de Havilland Dash 8 turboprops in favor of 70- and 86-seat RJs.
Maui-based Pacific Wings exacted a small measure of revenge on Hawaiian gatecrasher Mesa Air Group last month when it won the rights to two of Mesa’s Essential Air Service destinations in New Mexico. Pacific Wings plans to start serving Hobbs and Carlsbad, N.M., from Albuquerque using four nine-seat Cessna Grand Caravans on June 1.
Cessna will construct a Citation Service Center at the Williams Gateway Airport in Mesa, Ariz., and close the Long Beach, Calif. service center. The new operation is scheduled to open in a “phased transition” by the first quarter of 2009. The company said the 100,000-sq-ft Mesa facility will be more than twice as large as its Long Beach facility.