Under Mesa Air’s code-share agreement with United Airlines, United has exercised its early termination rights for Mesa’s operation of 10 Dash-8 turboprop aircraft. Mesa plans to work with United on an orderly transition plan, but, in any event, the date of exit from service is expected to be no later than April 30, 2010.
“We face a challenging period during the next few quarters and will strive to mitigate the impact of the termination of aircraft under our code-share agreement with United Airlines. The lease terms covering four of these aircraft expire on April 30, 2010, the remaining six aircraft have lease terms beyond April 30, 2010. We are exploring a number of opportunities for the remaining six aircraft including other codeshare opportunities, our independent operations, or subleasing the aircraft to other operators,” said Mesa chairman and CEO, Jonathan Ornstein.
WHAT TO TAKE AWAY FROM THIS ARTICLE:
- “We face a challenging period during the next few quarters and will strive to mitigate the impact of the termination of aircraft under our code-share agreement with United Airlines.
- Mesa plans to work with United on an orderly transition plan, but, in any event, the date of exit from service is expected to be no later than April 30, 2010.
- We are exploring a number of opportunities for the remaining six aircraft including other codeshare opportunities, our independent operations, or subleasing the aircraft to other operators,”.
