Mesa Air Group
Encyclopedia
Mesa Air Group, Inc. is a Nevada Corporation
commercial aviation holding company
with headquarters in Suite 100 at 410 North 44th Street in the Camelback East area of Phoenix
, Arizona
, United States
. The company operates one regional airline subsidiary: Mesa Airlines
, and five supporting subsidiaries. Air Midwest
its 3rd airline subsidiary was shut down in 2007. It operates flights under the Mesa Airlines
and Go! Mokulele
brands, or under contract in accordance with several codeshare agreements as US Airways Express
, and United Express
.
As of February 11, 2011, Mesa operated 77 aircraft with approximately 439 daily system departures to 94 cities, 38 states, the District of Columbia and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. In June 2006 Mesa launched inter-island Hawaiian service as go!. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 2,500 employees. In terms of revenue, Mesa Air Group at one point would be considered a major airline carrier
as it has over $1 billion annual revenue earnings, however it does not qualify for major status simply because its aircraft seat less than 100 people. At its peak during September 2007 Mesa Air Group operated 201 aircraft.
On January 5, 2010, Mesa Air Group filed for bankruptcy
. The company emerged from bankruptcy on March 1, 2011.
, established a charter flight department in 1980. In 1982, using $140,000 in capital, Larry Risley, an A&P mechanic with JB Aviation, and his wife Janie, purchased the flight department and its single Piper Chieftain
aircraft, and established Mesa Air Shuttle, flying a single route between Farmington
and Albuquerque.
During its first few years, Mesa found itself in a very competitive environment as it slowly expanded throughout New Mexico. Six other carriers competed against Mesa: Air Midwest
, Sun West Airlines
, Pioneer Airlines, Jet Air
, Trans-Colorado Airlines
and Airways of New Mexico. As fare wars erupted between the carriers, Mesa was able to survive due to its low cost structure. It performed maintenance in house, many of Mesa's employees performed multiple duties: pilots and mechanics doubled as gate agents and ramp agents.
In 1984, the Civil Aeronautics Board awarded Mesa its first Essential Air Service
(EAS) contract, to serve Roswell
, Hobbs
, and Carlsbad
, winning the contract from Air Midwest
. A second round of EAS bidding resulted in Mesa winning contracts to serve Silver City
, Alamogordo
, Las Cruces
, and Gallup
.
By 1987, Mesa had grown from six employees in 1982 to 187 employees: from a single Chieftain in 1982 to three Beechcraft 99s in 1984 to five Beechcraft 99s and four Beechcraft 1900
s. Of the six competing air carriers in 1982, none remained to challenge Mesa in New Mexico by 1987.
Mesa continued to grow in 1987. It listed on with an initial public offering of 865,000 shares of stock at $7.50. It expanded outside New Mexico by acquiring routes in Wyoming, Utah, and Colorado from Centennial Airlines
.
To provide a pool of trained, qualified pilots, in 1989, Mesa established an ab-initio flight training program with San Juan College
, a local community college. By the end of the 1980s Mesa poised itself for future growth and expansion.
In February 1989, Mesa negotiated its first codeshare agreement with Midwest Express and established Skyway Airlines
in Milwaukee. In July 1989, StatesWest Airlines
attempted to take over Mesa by making an offer to purchase all of the common operating stock of Mesa, which was rejected.
In February 1990, Mesa acquired Aspen Airways
' United Express
Denver hub, routes and assets, and negotiated a codeshare agreement with United Airlines
. Using these newly acquired routes, Mesa set up a Denver hub flying as United Express
. Aspen Airways' BAe 146
and Convair 580 aircraft and its Denver-Aspen route were sold to Air Wisconsin
.
Mesa had many changes in 1991; acquiring Air Midwest
, its Kansas City hub and a codeshare agreement with USAir Express
in July, starting FloridaGulf Airlines
serving Florida, South Carolina, Georgia, Alabama, Arkansas, and Louisiana from its Tampa hub under a USAir Express
codeshare in December. It was also in talks to acquire WestAir Commuter Airlines.
In 1992, Mesa completed acquisition of WestAir Commuter Airlines and its hubs in San Francisco, Los Angeles, Portland, and Seattle as well as its United codeshare. In October 1992, Mesa negotiated a codeshare agreement with America West for its Phoenix hub to be operated as America West Express
.
In 1993, Mesa's codeshare with Midwest Express expired. Midwest Express kept the name Skyway for its future regional of the same name. Using the aircraft from the former Skyway operation, Mesa established Superior Airlines
with a Columbus
hub operating as America West Express
. Mesa created CalPac
(California Pacific) with a Los Angeles hub operating as United Express
. Both Superior and CalPac were short-lived operations, with both airlines being folded back into Mesa Airlines United Express operations.
In 1994, Mesa acquired Pittsburgh-based Crown Airways
. Using the assets from Crown Airways, Mesa set up Liberty Express Airlines
with a Pittsburgh
hub operating as USAir Express
.
In March 1995, Mesa took delivery of its first two regional jets, the Fokker F-70. Mesa created Desert Sun Airlines
and operated the two jets from a Phoenix hub to Des Moines
and Spokane
as America West Express
.
In 1992, Mesa created Mesa Holdings Corp to manage the existing Mesa Airlines and its acquisitions. It resulted in the following subsidiaries:
In 1995, Mesa Holdings Corp was renamed Mesa Air Group, and Mesa Airlines was renamed Mountain West Airlines. Mesa Air Group now consisted of the following six airlines and subsidiaries:
In 1996, further company reorganization consolidated the separate flight dispatch functions of Desert Sun, FloridaGulf, and Mountain West airlines into one location in Farmington
. All flight training facilities and human resources were centralized in Fort Worth
. Since the mergers had created a diverse mix of aircraft types, Mesa proceeded to simplify the number of aircraft types operated from six (Shorts 360, Jetstream, Brasilia, 1900, Dash 8, Fokker) to three (1900, Dash 8, CRJ). Mesa relocated aircraft to place all airplanes of the same type in a base, with the Jetstreams and Brasilias flying in the West, 1900s flying elsewhere. This also allowed the consolidation of maintenance facilities, since the facilities no longer needed to service all the different types of aircraft Mesa operated. To replace the Fokker aircraft, Mesa signed an agreement with Bombardier to purchase 16 Canadair Regional Jets (CRJ)
with options for 32 more.
The six pilot groups had voted to unionize in 1994. In 1996, the pilot groups of the six airlines were merged into one common seniority list, and under the Air Line Pilots Association (ALPA) representation, the pilots and Mesa negotiated and ratified a five-year collective bargaining agreement.
When Mesa started taking deliveries of the CRJ in 1997, it returned to two Fokker 70 jets and placed the CRJs in service in Phoenix. Mesa started an independent hub providing CRJ service from Fort Worth Meacham
to Houston
, San Antonio
, Austin
, Colorado Springs
, and from Colorado Springs to Nashville
. This effort proved to be unsuccessful and the service from Fort Worth ended in less than a year.
. Finally with negotiations at an impasse, United announced in November 1997 that it would not renew the codeshare with WestAir. Mesa attempted to reengage United and ask United to reconsider to no avail.
Mesa experienced many customer complaints regarding its Denver United Express operation. The level of complaints resulted in a Congressional inquiry of the airline's performance. Mesa experienced increased costs the Denver hub as a result of moving from Denver Stapleton airport to the new Denver International Airport and as a result of a decrease in the average fare Mesa received from United. In efforts to reduce its exposure to the high costs and mounting losses, Mesa announced that it would reduce and terminate service from its Denver hub in September 1997. United charged that the reduction and termination of service was a material breech of the codeshare agreement. Naturally Mesa disagreed. Again, as with WestAir, agreement could not be reached and United and Mesa mutually agreed to terminate the codeshare.
The effect of the codeshare termination with WestAir and Mesa was immediate. The termination put 87 (21 Jetstreams, 29 Brasilias, and 37 Beech 1900s) of Mesa's 184 aircraft out of service or 47% of its total aircraft. Mesa took immediate steps, parking the Jetstreams and Brasilias. It sold 10 Brasilias to Skywest. Mesa exercised the option to purchase 16 additional CRJs and traded in the remaining Brasilias to Bombardier for CRJs. Mesa sold 24 Beech 1900s to Great Lakes, and returned the remaining Beech 1900s to Beechcraft/Raytheon. WestAir ceased operations in 1998.
Mesa experienced difficulties with its other two codeshares as well. Flight crew shortages and scheduling problems resulted in the cancellation of many flights. From October 1997 to January 1998, Mesa parked aircraft and canceled flights to alleviate the crew shortage problem. Part of the crew shortage problem was related to the consolidation of flight operations in Farmington, and the training associated with transitioning the air carrier from a Part 135 operator to a Part 121 operator as required by a FAA mandate. America West canceled its codeshare with Mesa in 1997.
One of Mesa's problems during the turnaround was that it operated over 180 turboprops. It began consolidating all of its remaining Beechcraft 1900 turboprops into Air Midwest, completing the consolidation in 2000. It embarked on a plan to reequip with jet aircraft. In 1999, Mesa arranged to purchase 36 Embraer 145 jets with options for 64 additional ERJs. In 2001, Mesa arranged to purchase 20 CRJ-700s and 20 CRJ-900s with options for 80 additional CRJ-700/900s. Five of the CRJ-700 orders were subsequently converted to CRJ-900s. As Mesa took delivery of the larger CRJ-700s and CRJ-900s, scope restrictions with US Airways prevented Mesa from operating the larger aircraft in its Mesa Airlines subsidiary. Mesa created a separate subsidiary, called Freedom Airlines
to operate these aircraft. As the scope restriction at US Airways was removed during US Airways' bankruptcy reorganization and after Mesa settled with its pilot union regarding operating Freedom as a separate air carrier, Freedom's aircraft and pilots were merged back into Mesa Airlines in 2003.
As Mesa completed its restructuring, it proceeded to reestablish it codeshares. In 1998, it negotiated a new codeshare with America West and expanded its codeshare with USAir. In 2001, Mesa reestablished a codeshare agreement with Midwest Express for its Air Midwest Kansas City hub. Also that same year, Mesa negotiated an agreement with Frontier
to operate as Frontier JetExpress out of Denver. The Frontier codeshare ended in 2003. In 2003, Mesa reestablished a codeshare agreement with United, operating as United Express. In 2005, Mesa negotiated a codeshare agreement with Delta for Freedom Airlines to operate as a Delta Connection carrier.
By 1999, Mesa returned to profitability. Mesa acquired CCAir
and its USAir Express codeshare in 1999. It continued to operate CCAir as a separate operation. By 2002, CCAir ceased operations due to high costs and its assets and employees were absorbed into Mesa. The latest merger attempt was in 2003, when Mesa offered to acquire Atlantic Coast Airlines
. Its offer was refused, and ACA went on to operate independently as Independence Air
and later ceased operations in January, 2006. In 2006, Mesa began operating in Hawaii under the brand go!
and established a codeshare agreement with Mokulele Airlines
, where Mokulele will operate as a go! Express carrier.
and Aloha Airlines
, both in bankruptcy at the time, and reviewed operational records and forecasts, but ultimately decided not to acquire or invest in either carrier. In 2006, after Mesa announced plans for its "go!" sub-branded airline in Hawaii, Hawaiian Airlines sued to block the launch, claiming that Mesa had violated a confidentiality agreement. Aloha Airlines filed a similar suit against Mesa later that year.
In September 2007, the CFO of Mesa Air Group was placed on administrative suspension as irregularities were investigated during the Hawaiian Airlines case. In an announcement, Mesa Air Group CEO Jonathan Ornstein assured shareholders and investors that "the alleged misconduct does not involve the financial controls, financial statements or operations of the Company." The judge overseeing the Mesa go! case, however, ruled Mesa destroyed evidence. and ordered Mesa Air Group to pay an $80 million interest bearing settlement with interest, along with legal fees, to Hawaiian Airlines.
Aloha Airlines ceased operations in March 2008, and the Aloha Airlines suit was settled in November 2008. Mesa agreed to pay $2 million, 10% of Mesa's common stock, and provide travel benefits on go! for former Aloha employees. Initially the settlement agreement included a provision whereby Mesa Air Group could license the Aloha name, but a federal judge rejected that agreement on the basis of Mesa's alleged misconduct in the Hawaii market.
and R.A.H.'s
Shuttle America
. Mokulele operates a vast fleet of 4 Cessna Caravan aircraft, but is a significant competitor to "go!" with its outsourced Hawaii regional flying. It has not been determined if Mesa Airlines
or Mokulele's IATA airline code will be adopted by the agreement with Mesa Air Group.http://www.stockhouse.com/News/USReleasesDetail.aspx?n=7484982
subsidiary was not included in the filing, Per bankruptcy records, upon Mesa Air Group's exit from bankruptcy, US Airways Group
will own a 10 percent stake in the operation. The company emerged from bankruptcy protection on March 1, 2011, as a privately held company with a new board of directors and having eliminated 100 excess aircraft.
1As of December 31, 2006
²4 firm orders and 112 total options for CRJ-700/900 aircraft. Mesa took delivery of 3 CRJ-700 aircraft during 2006.
³During 2006 Mesa acquired 12 used Dash-8-100s for Freedom Airline's Delta Connection service at New York's John F. Kennedy Airport.
4Since 1998, all of Mesa's EMB-120 aircraft have been in long-term storage awaiting return to their lessors.
514 of Mesa's B1900D aircraft are leased to other carriers: 10 to Big Sky
, and 4 to Gulfstream
Nevada Corporation
A Nevada corporation is a corporation incorporated under Chapter 78 of Nevada Revised Statutes of the U.S. state of Nevada.Nevada, like the state of Delaware , is well known as a corporate haven...
commercial aviation holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
with headquarters in Suite 100 at 410 North 44th Street in the Camelback East area of Phoenix
Phoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...
, Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The company operates one regional airline subsidiary: Mesa Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
, and five supporting subsidiaries. Air Midwest
Air Midwest
Air Midwest, Inc., was a Federal Aviation Administration Part 121 certificated air carrier operating under air carrier certificate number AMWA510A issued on May 15, 1965. It was headquartered in Wichita, Kansas, United States, and was a subsidiary of Mesa Air Group. It operated flights as US...
its 3rd airline subsidiary was shut down in 2007. It operates flights under the Mesa Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
and Go! Mokulele
Go! Mokulele
go! Mokulele is an American business marketing inter-island flights within the state of Hawaii. The business is a joint venture of Mesa Air Group and Republic Airways Holdings, created in October 2009 when the companies merged their competing airline business subsidiaries, go! and Mokulele...
brands, or under contract in accordance with several codeshare agreements as US Airways Express
US Airways Express
US Airways Express is an airline brand name, rather than a fully certified airline, and as such, the US Airways Express name is used by several individually owned airlines or airline holding companies which provide regional airline and commuter service for US Airways.Operations are conducted from...
, and United Express
United Express
United Express is a brand name under which eight regional airlines operate feeder flights for United Airlines. They primarily connect smaller cities with United's domestic hub airports and “focus cities,” although they offer some point-to-point service such as Sacramento to Eureka.As of Sept...
.
As of February 11, 2011, Mesa operated 77 aircraft with approximately 439 daily system departures to 94 cities, 38 states, the District of Columbia and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. In June 2006 Mesa launched inter-island Hawaiian service as go!. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 2,500 employees. In terms of revenue, Mesa Air Group at one point would be considered a major airline carrier
Major carrier
Major carrier or major airline carrier is a designation given by the United States Department of Transportation to U.S.-based airlines that post more than $1 billion in revenue during a fiscal year.As of 2010, there were 19 major carriers....
as it has over $1 billion annual revenue earnings, however it does not qualify for major status simply because its aircraft seat less than 100 people. At its peak during September 2007 Mesa Air Group operated 201 aircraft.
On January 5, 2010, Mesa Air Group filed for bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. The company emerged from bankruptcy on March 1, 2011.
Airlines
- Mesa Airlines, Inc.Mesa AirlinesMesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
- go! MokuleleGo! Mokulelego! Mokulele is an American business marketing inter-island flights within the state of Hawaii. The business is a joint venture of Mesa Air Group and Republic Airways Holdings, created in October 2009 when the companies merged their competing airline business subsidiaries, go! and Mokulele...
- Although a part of Mesa Air Group and 1/4 owned by Republic Airways HoldingsRepublic Airways HoldingsRepublic Airways Holdings, Inc. is an aviation holding corporation based in Indianapolis, Indiana, which owns six airlines operating in the United States: Chautauqua Airlines, Frontier Airlines, Republic Airlines, Shuttle America, and the former Lynx Aviation....
, was not part of the company's bankruptcy filing on 5 January 2010. Flights for this latest branding scheme are operated by both Mesa Airlines using the partial branding and former aircraft of go!Go! (airline)Go! , based in Honolulu is a regional brand of Phoenix, Arizona based Mesa Airlines. Go! operates inter island services within Hawaii. Its main base is Honolulu International Airport...
, in addition to flights to lower density cities which are still operated by Mokulele AirlinesMokulele AirlinesMokulele Airlines, is an American commuter airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii. The airline operates scheduled inter-island and charter flights primarily among Hawaii's smaller airports.-History:...
.
- go! Mokulele
Non-airline subsidiaries
- Mesa Pilot Development, Inc.
- Regional Aircraft Services, Inc.
- MAGI Insurance, Ltd.
- Ritz Hotel Management Corp.
- Mesa Air Group—Aircraft Inventory Management, LLC (MAG-AIM)
Former airlines and subsidiaries
- Air MidwestAir MidwestAir Midwest, Inc., was a Federal Aviation Administration Part 121 certificated air carrier operating under air carrier certificate number AMWA510A issued on May 15, 1965. It was headquartered in Wichita, Kansas, United States, and was a subsidiary of Mesa Air Group. It operated flights as US...
- Freedom Airlines, Inc.Freedom AirlinesFreedom Airlines, Inc. was an American FAA Part 121 certificated air carrier operating under air carrier certificate number FDKA087K issued on April 1, 2002. The Nevada Corporation is headquartered in Irving, Texas and is a subsidiary of Mesa Air Group...
- CalPac (California Pacific)Mesa AirlinesMesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
- CCAirCCAirCCAir, Inc. was a regional airline headquartered in Charlotte, North Carolina, United States.CCAir was created in 1987 when Sunbird Airlines was renamed. Operating as a Piedmont Commuter / USAir Express code-sharing partner, its radio call sign was "Carolina". The CC stood for Carolina Commuter...
- Desert Sun Airlines
- FloridaGulf Airlines
- Liberty Express Airlines
- Mountain West Airlines
- Skyway AirlinesSkyway AirlinesSkyway Airlines is an American ramp and aircraft ground handling services and catering company based in Oak Creek, Wisconsin. Until April 5, 2008, it operated as a regional airline under the business name Midwest Connect, feeding Midwest Airlines's hub at General Mitchell International Airport with...
- Superior Airlines
- WestAir Holdings, Inc. and WestAir Commuter Airlines
- Desert Turbine Services
- Four Corners Aviation
- Mesa Leasing, Inc.
- San Juan Pilot Training
History
Mesa began when JB Aviation, a fixed base operator at Farmington's Four Corners Regional AirportFour Corners Regional Airport
Four Corners Regional Airport is a public airport located northwest of the central business district of Farmington, a city in San Juan County, New Mexico, United States. Formerly Mesa Airlines provided flights to Albuquerque, however these were discontinued in 2007...
, established a charter flight department in 1980. In 1982, using $140,000 in capital, Larry Risley, an A&P mechanic with JB Aviation, and his wife Janie, purchased the flight department and its single Piper Chieftain
Piper PA-31 Navajo
The Piper PA-31 Navajo is a family of cabin-class, twin-engine aircraft designed and built by Piper Aircraft for the general aviation market, most using Lycoming engines. It was also licence-built in a number of Latin American countries. Targeted at small-scale cargo and feeder liner operations and...
aircraft, and established Mesa Air Shuttle, flying a single route between Farmington
Farmington, New Mexico
Farmington is a city in San Juan County in the U.S. state of New Mexico. As of the 2010 U.S. Census the city had a total population of 45,877 people. Farmington makes up one of the four Metropolitan Statistical Areas in New Mexico. The U.S...
and Albuquerque.
During its first few years, Mesa found itself in a very competitive environment as it slowly expanded throughout New Mexico. Six other carriers competed against Mesa: Air Midwest
Air Midwest
Air Midwest, Inc., was a Federal Aviation Administration Part 121 certificated air carrier operating under air carrier certificate number AMWA510A issued on May 15, 1965. It was headquartered in Wichita, Kansas, United States, and was a subsidiary of Mesa Air Group. It operated flights as US...
, Sun West Airlines
Sun West Airlines
Sun West Airlines was an airline that flew in the Southwestern U.S. from about 1980 - 1985. Its destinations included Bullhead City, Phoenix and Prescott, Arizona, Durango, Colorado, Las Vegas and Laughlin, Nevada, and Farmington and Gallup, New Mexico....
, Pioneer Airlines, Jet Air
Jet Air
Jet Air Sp. z o.o. is a Polish air operator that provides leasing services as well as a branded operation on domestic and intra-European flights.-History:...
, Trans-Colorado Airlines
Trans-Colorado Airlines
Trans-Colorado Airlines, based in Colorado Springs, Colorado, United States operated from August 1980 until July 1988. The airline operated flights for Continental Airlines under the Continental Express banner beginning in 1986.-Early history:...
and Airways of New Mexico. As fare wars erupted between the carriers, Mesa was able to survive due to its low cost structure. It performed maintenance in house, many of Mesa's employees performed multiple duties: pilots and mechanics doubled as gate agents and ramp agents.
In 1984, the Civil Aeronautics Board awarded Mesa its first Essential Air Service
Essential Air Service
Essential Air Service is a U.S. government program enacted to guarantee that small communities in the United States, which, prior to deregulation, were served by certificated airlines, maintained commercial service. Its aim is to maintain a minimal level of scheduled air service to these...
(EAS) contract, to serve Roswell
Roswell, New Mexico
Roswell is a city in and the county seat of Chaves County in the southeastern quarter of the state of New Mexico, United States. The population was 48,366 at the 2010 census. It is a center for irrigation farming, dairying, ranching, manufacturing, distribution, and petroleum production. It is also...
, Hobbs
Hobbs, New Mexico
Hobbs is a city in Lea County, New Mexico, United States. The population was 28,657 at the 2000 census.Hobbs is the principal city of the Hobbs, New Mexico Micropolitan Statistical Area, which includes all of Lea County.-Geography:...
, and Carlsbad
Carlsbad, New Mexico
Carlsbad is a city in and the county seat of Eddy County, New Mexico, in the United States. As of the 2010 census, the city population was 26,138. Carlsbad is the center of the designated micropolitan area of Carlsbad-Artesia, which has a total population of 55,435...
, winning the contract from Air Midwest
Air Midwest
Air Midwest, Inc., was a Federal Aviation Administration Part 121 certificated air carrier operating under air carrier certificate number AMWA510A issued on May 15, 1965. It was headquartered in Wichita, Kansas, United States, and was a subsidiary of Mesa Air Group. It operated flights as US...
. A second round of EAS bidding resulted in Mesa winning contracts to serve Silver City
Silver City, New Mexico
Silver City is a town in Grant County, New Mexico, in the United States. As of the 2000 census, the town population was 10,545. It is the county seat of Grant County. The city is the home of Western New Mexico University.-History:...
, Alamogordo
Alamogordo, New Mexico
Alamogordo is the county seat of Otero County and a city in south-central New Mexico, United States. A desert community lying in the Tularosa Basin, it is bordered on the east by the Sacramento Mountains. It is the nearest city to Holloman Air Force Base. The population was 35,582 as of the 2000...
, Las Cruces
Las Cruces, New Mexico
Las Cruces, also known as "The City of the Crosses", is the county seat of Doña Ana County, New Mexico, United States. The population was 97,618 in 2010 according to the 2010 Census, making it the second largest city in the state....
, and Gallup
Gallup, New Mexico
- Demographics :As of the census of 2000, there were 20,209 people, 6,810 households, and 4,869 families residing in the city. The population density was 1,513.7 people per square mile...
.
By 1987, Mesa had grown from six employees in 1982 to 187 employees: from a single Chieftain in 1982 to three Beechcraft 99s in 1984 to five Beechcraft 99s and four Beechcraft 1900
Beechcraft 1900
The Beechcraft 1900 is a 19-passenger, pressurized twin-engine turboprop airplane manufactured by the Beechcraft Division of the Raytheon Company . It was designed, and is primarily used, as a regional airliner...
s. Of the six competing air carriers in 1982, none remained to challenge Mesa in New Mexico by 1987.
Mesa continued to grow in 1987. It listed on with an initial public offering of 865,000 shares of stock at $7.50. It expanded outside New Mexico by acquiring routes in Wyoming, Utah, and Colorado from Centennial Airlines
Centennial Airlines
Centennial Airlines was founded in Laramie, Wyoming in 1981, and flew until 1987Centennial served Denver, Colorado, Billings, Montana; Logan and Salt Lake City, Utah; Casper, Cody, Jackson, Lander, Laramie, Riverton, Rock Springs and Worland, Wyoming....
.
To provide a pool of trained, qualified pilots, in 1989, Mesa established an ab-initio flight training program with San Juan College
San Juan College
Founded in 1956 as a branch of the New Mexico College of Agriculture and Mechanical Arts, San Juan College became an independent community college following a county election in 1981.-History:...
, a local community college. By the end of the 1980s Mesa poised itself for future growth and expansion.
Acquisitions and mergers
Starting in 1989, Mesa embarked on a series of acquisitions and mergers over the next six years that would known by the airline industry watchers as "Mesa's a deal a year growth."In February 1989, Mesa negotiated its first codeshare agreement with Midwest Express and established Skyway Airlines
Skyway Airlines
Skyway Airlines is an American ramp and aircraft ground handling services and catering company based in Oak Creek, Wisconsin. Until April 5, 2008, it operated as a regional airline under the business name Midwest Connect, feeding Midwest Airlines's hub at General Mitchell International Airport with...
in Milwaukee. In July 1989, StatesWest Airlines
StatesWest Airlines
StatesWest Airlines was a commuter airline headquartered in Phoenix, Arizona that operated to destinations in the Southwestern United States.-History:...
attempted to take over Mesa by making an offer to purchase all of the common operating stock of Mesa, which was rejected.
In February 1990, Mesa acquired Aspen Airways
Aspen Airways
Aspen Airways was a former airline carrier and regional affiliate of United Express and based in Hangar 5 in Stapleton International Airport in Denver, Colorado...
' United Express
United Express
United Express is a brand name under which eight regional airlines operate feeder flights for United Airlines. They primarily connect smaller cities with United's domestic hub airports and “focus cities,” although they offer some point-to-point service such as Sacramento to Eureka.As of Sept...
Denver hub, routes and assets, and negotiated a codeshare agreement with United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
. Using these newly acquired routes, Mesa set up a Denver hub flying as United Express
United Express
United Express is a brand name under which eight regional airlines operate feeder flights for United Airlines. They primarily connect smaller cities with United's domestic hub airports and “focus cities,” although they offer some point-to-point service such as Sacramento to Eureka.As of Sept...
. Aspen Airways' BAe 146
BAe 146
The British Aerospace 146 is a medium-sized commercial airliner formerly manufactured in the United Kingdom by British Aerospace, later part of BAE Systems. Production ran from 1983 until 2002. Manufacture of an improved version known as the Avro RJ began in 1992...
and Convair 580 aircraft and its Denver-Aspen route were sold to Air Wisconsin
Air Wisconsin
Air Wisconsin Airlines Corporation is an airline based at Outagamie County Regional Airport in the town of Greenville, Wisconsin, United States, near Appleton. Air Wisconsin is the largest privately held regional airline in the United States...
.
Mesa had many changes in 1991; acquiring Air Midwest
Air Midwest
Air Midwest, Inc., was a Federal Aviation Administration Part 121 certificated air carrier operating under air carrier certificate number AMWA510A issued on May 15, 1965. It was headquartered in Wichita, Kansas, United States, and was a subsidiary of Mesa Air Group. It operated flights as US...
, its Kansas City hub and a codeshare agreement with USAir Express
US Airways Express
US Airways Express is an airline brand name, rather than a fully certified airline, and as such, the US Airways Express name is used by several individually owned airlines or airline holding companies which provide regional airline and commuter service for US Airways.Operations are conducted from...
in July, starting FloridaGulf Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
serving Florida, South Carolina, Georgia, Alabama, Arkansas, and Louisiana from its Tampa hub under a USAir Express
US Airways Express
US Airways Express is an airline brand name, rather than a fully certified airline, and as such, the US Airways Express name is used by several individually owned airlines or airline holding companies which provide regional airline and commuter service for US Airways.Operations are conducted from...
codeshare in December. It was also in talks to acquire WestAir Commuter Airlines.
In 1992, Mesa completed acquisition of WestAir Commuter Airlines and its hubs in San Francisco, Los Angeles, Portland, and Seattle as well as its United codeshare. In October 1992, Mesa negotiated a codeshare agreement with America West for its Phoenix hub to be operated as America West Express
America West Express
America West Express was the name for America West Airlines commuter and regional flights operated by Mesa Air Group's Mesa Airlines under a code share agreement...
.
In 1993, Mesa's codeshare with Midwest Express expired. Midwest Express kept the name Skyway for its future regional of the same name. Using the aircraft from the former Skyway operation, Mesa established Superior Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
with a Columbus
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
hub operating as America West Express
America West Express
America West Express was the name for America West Airlines commuter and regional flights operated by Mesa Air Group's Mesa Airlines under a code share agreement...
. Mesa created CalPac
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
(California Pacific) with a Los Angeles hub operating as United Express
United Express
United Express is a brand name under which eight regional airlines operate feeder flights for United Airlines. They primarily connect smaller cities with United's domestic hub airports and “focus cities,” although they offer some point-to-point service such as Sacramento to Eureka.As of Sept...
. Both Superior and CalPac were short-lived operations, with both airlines being folded back into Mesa Airlines United Express operations.
In 1994, Mesa acquired Pittsburgh-based Crown Airways
Crown Airways
Crown Airways was a regional airline operating for USAir Express with its headquarters on the grounds of DuBois Regional Airport in Washington Township, Jefferson County, Pennsylvania, near Falls Creek....
. Using the assets from Crown Airways, Mesa set up Liberty Express Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
with a Pittsburgh
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
hub operating as USAir Express
US Airways Express
US Airways Express is an airline brand name, rather than a fully certified airline, and as such, the US Airways Express name is used by several individually owned airlines or airline holding companies which provide regional airline and commuter service for US Airways.Operations are conducted from...
.
In March 1995, Mesa took delivery of its first two regional jets, the Fokker F-70. Mesa created Desert Sun Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
and operated the two jets from a Phoenix hub to Des Moines
Des Moines, Iowa
Des Moines is the capital and the most populous city in the US state of Iowa. It is also the county seat of Polk County. A small portion of the city extends into Warren County. It was incorporated on September 22, 1851, as Fort Des Moines which was shortened to "Des Moines" in 1857...
and Spokane
Spokane, Washington
Spokane is a city located in the Northwestern United States in the state of Washington. It is the largest city of Spokane County of which it is also the county seat, and the metropolitan center of the Inland Northwest region...
as America West Express
America West Express
America West Express was the name for America West Airlines commuter and regional flights operated by Mesa Air Group's Mesa Airlines under a code share agreement...
.
Reorganization
As Mesa acquired air carriers or expanded by creating new airlines, it grew in a seemingly haphazard manner. By 1995, Mesa had grown from one airline with hubs in Albuquerque and Phoenix in 1989, to six separate airlines with hubs throughout the country, though it had as many as eight airlines prior to 1995. Rather than integrating each new acquisition and airline into one integrated company, Mesa continued operating each individual airline independently, with separate labor groups, separate flight, maintenance, and marketing operations, and separate codeshare agreements. This resulted in an unwieldy corporate structure.In 1992, Mesa created Mesa Holdings Corp to manage the existing Mesa Airlines and its acquisitions. It resulted in the following subsidiaries:
- Air Midwest (Kansas City)
- Mesa Airlines
- America West Express (Phoenix)
- FloridaGulf Airlines (Tampa)
- Mesa Airlines (Albuquerque)
- United Express (Denver)
- Skyway Airlines (Milwaukee)
- WestAir Commuter Airlines (Los Angeles, San Francisco, Portland, and Seattle)
- San Juan Pilot Training (forerunner to Mesa Pilot Development)
- Desert Turbine Services
In 1995, Mesa Holdings Corp was renamed Mesa Air Group, and Mesa Airlines was renamed Mountain West Airlines. Mesa Air Group now consisted of the following six airlines and subsidiaries:
- Air MidwestAir MidwestAir Midwest, Inc., was a Federal Aviation Administration Part 121 certificated air carrier operating under air carrier certificate number AMWA510A issued on May 15, 1965. It was headquartered in Wichita, Kansas, United States, and was a subsidiary of Mesa Air Group. It operated flights as US...
(Kansas City/USAir Express) - Desert Sun Airlines (Phoenix/America West Express)
- FloridaGulf Airlines (Tampa, Orlando, New Orleans, Boston, Philadelphia/USAir Express)
- Liberty Express Airlines (Pittsburgh/USAir Express)
- Mountain West Airlines
- Mesa AirlinesMesa AirlinesMesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
(Albuquerque) - United ExpressUnited ExpressUnited Express is a brand name under which eight regional airlines operate feeder flights for United Airlines. They primarily connect smaller cities with United's domestic hub airports and “focus cities,” although they offer some point-to-point service such as Sacramento to Eureka.As of Sept...
(Denver, Los Angeles (former CalPac), Portland, Seattle) - America West ExpressAmerica West ExpressAmerica West Express was the name for America West Airlines commuter and regional flights operated by Mesa Air Group's Mesa Airlines under a code share agreement...
(Phoenix)
- Mesa Airlines
- WestAir Commuter AirlinesWestAir Commuter AirlinesWestAir Commuter Airlines, also known as WestAir Airlines, was formed when Stol Air Commuter changed its name in 1978. One of the founders was Maurice J. Gallagher, Jr., who later acquired Allegiant Air. Late in its life it was known as United Express Airline. It was headquartered in Fresno,...
(Los Angeles, San Francisco, Portland, Seattle/United Express) - Desert Turbine Services
- Four Corners Aviation
- Mesa Pilot Development
- Regional Aircraft Services
In 1996, further company reorganization consolidated the separate flight dispatch functions of Desert Sun, FloridaGulf, and Mountain West airlines into one location in Farmington
Farmington, New Mexico
Farmington is a city in San Juan County in the U.S. state of New Mexico. As of the 2010 U.S. Census the city had a total population of 45,877 people. Farmington makes up one of the four Metropolitan Statistical Areas in New Mexico. The U.S...
. All flight training facilities and human resources were centralized in Fort Worth
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
. Since the mergers had created a diverse mix of aircraft types, Mesa proceeded to simplify the number of aircraft types operated from six (Shorts 360, Jetstream, Brasilia, 1900, Dash 8, Fokker) to three (1900, Dash 8, CRJ). Mesa relocated aircraft to place all airplanes of the same type in a base, with the Jetstreams and Brasilias flying in the West, 1900s flying elsewhere. This also allowed the consolidation of maintenance facilities, since the facilities no longer needed to service all the different types of aircraft Mesa operated. To replace the Fokker aircraft, Mesa signed an agreement with Bombardier to purchase 16 Canadair Regional Jets (CRJ)
Bombardier Canadair Regional Jet
The Bombardier CRJ is a family of regional airliners manufactured by Bombardier:* CRJ100 - 50 seats* CRJ200 - 50 seats* CRJ700 - 70 seats* CRJ705 - 75 seats* CRJ900 - 90 seats* CRJ1000 - 100 seats...
with options for 32 more.
The six pilot groups had voted to unionize in 1994. In 1996, the pilot groups of the six airlines were merged into one common seniority list, and under the Air Line Pilots Association (ALPA) representation, the pilots and Mesa negotiated and ratified a five-year collective bargaining agreement.
When Mesa started taking deliveries of the CRJ in 1997, it returned to two Fokker 70 jets and placed the CRJs in service in Phoenix. Mesa started an independent hub providing CRJ service from Fort Worth Meacham
Fort Worth Meacham International Airport
Fort Worth Meacham International Airport is an airport in Fort Worth, Texas. The airport is located at the intersection of Interstate 820 and U.S. Business Highway 287 in northwest Fort Worth, near the downtown business district...
to Houston
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
, San Antonio
San Antonio, Texas
San Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
, Austin
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
, Colorado Springs
Colorado Springs, Colorado
Colorado Springs is a Home Rule Municipality that is the county seat and most populous city of El Paso County, Colorado, United States. Colorado Springs is located in South-Central Colorado, in the southern portion of the state. It is situated on Fountain Creek and is located south of the Colorado...
, and from Colorado Springs to Nashville
Nashville, Tennessee
Nashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...
. This effort proved to be unsuccessful and the service from Fort Worth ended in less than a year.
Difficulties and loss of the United codeshare
Mesa and United entered into discussions in July 1997 to renew WestAir's codeshare agreement, which was due to expire in May 1998. Mesa and United could not agree on new terms. As negotiations delayed into the summer, United started awarding WestAir's routes to SkyWest AirlinesSkywest Airlines
Skywest Airlines Pty Ltd is a regional airline company based in Perth, Western Australia, Australia; servicing key towns in the state of Western Australia, Darwin, Northern Territory and Melbourne, Victoria; as well as charter flights to Bali, Indonesia....
. Finally with negotiations at an impasse, United announced in November 1997 that it would not renew the codeshare with WestAir. Mesa attempted to reengage United and ask United to reconsider to no avail.
Mesa experienced many customer complaints regarding its Denver United Express operation. The level of complaints resulted in a Congressional inquiry of the airline's performance. Mesa experienced increased costs the Denver hub as a result of moving from Denver Stapleton airport to the new Denver International Airport and as a result of a decrease in the average fare Mesa received from United. In efforts to reduce its exposure to the high costs and mounting losses, Mesa announced that it would reduce and terminate service from its Denver hub in September 1997. United charged that the reduction and termination of service was a material breech of the codeshare agreement. Naturally Mesa disagreed. Again, as with WestAir, agreement could not be reached and United and Mesa mutually agreed to terminate the codeshare.
The effect of the codeshare termination with WestAir and Mesa was immediate. The termination put 87 (21 Jetstreams, 29 Brasilias, and 37 Beech 1900s) of Mesa's 184 aircraft out of service or 47% of its total aircraft. Mesa took immediate steps, parking the Jetstreams and Brasilias. It sold 10 Brasilias to Skywest. Mesa exercised the option to purchase 16 additional CRJs and traded in the remaining Brasilias to Bombardier for CRJs. Mesa sold 24 Beech 1900s to Great Lakes, and returned the remaining Beech 1900s to Beechcraft/Raytheon. WestAir ceased operations in 1998.
Mesa experienced difficulties with its other two codeshares as well. Flight crew shortages and scheduling problems resulted in the cancellation of many flights. From October 1997 to January 1998, Mesa parked aircraft and canceled flights to alleviate the crew shortage problem. Part of the crew shortage problem was related to the consolidation of flight operations in Farmington, and the training associated with transitioning the air carrier from a Part 135 operator to a Part 121 operator as required by a FAA mandate. America West canceled its codeshare with Mesa in 1997.
Turnaround
In 1998, Jonathan Ornstein was appointed CEO of Mesa Air Group. Ornstein had been Risley's assistant from 1989 to 1995 during Mesa's initial expansion. Larry Risley remained on Mesa's board of directors. All corporate officers were replaced and the company headquarters was relocated from Farmington to Phoenix. The flight training and human resources departments were also moved to Phoenix. Its plan to return to profitability focused on several fronts: its aircraft, its codeshares, and customer serviceOne of Mesa's problems during the turnaround was that it operated over 180 turboprops. It began consolidating all of its remaining Beechcraft 1900 turboprops into Air Midwest, completing the consolidation in 2000. It embarked on a plan to reequip with jet aircraft. In 1999, Mesa arranged to purchase 36 Embraer 145 jets with options for 64 additional ERJs. In 2001, Mesa arranged to purchase 20 CRJ-700s and 20 CRJ-900s with options for 80 additional CRJ-700/900s. Five of the CRJ-700 orders were subsequently converted to CRJ-900s. As Mesa took delivery of the larger CRJ-700s and CRJ-900s, scope restrictions with US Airways prevented Mesa from operating the larger aircraft in its Mesa Airlines subsidiary. Mesa created a separate subsidiary, called Freedom Airlines
Freedom Airlines
Freedom Airlines, Inc. was an American FAA Part 121 certificated air carrier operating under air carrier certificate number FDKA087K issued on April 1, 2002. The Nevada Corporation is headquartered in Irving, Texas and is a subsidiary of Mesa Air Group...
to operate these aircraft. As the scope restriction at US Airways was removed during US Airways' bankruptcy reorganization and after Mesa settled with its pilot union regarding operating Freedom as a separate air carrier, Freedom's aircraft and pilots were merged back into Mesa Airlines in 2003.
As Mesa completed its restructuring, it proceeded to reestablish it codeshares. In 1998, it negotiated a new codeshare with America West and expanded its codeshare with USAir. In 2001, Mesa reestablished a codeshare agreement with Midwest Express for its Air Midwest Kansas City hub. Also that same year, Mesa negotiated an agreement with Frontier
Frontier Airlines
Frontier Airlines, Inc., is an American airline headquartered in Indianapolis, Indiana, United States. The carrier, which is a subsidiary and operating brand of Republic Airways Holdings, operates flights to 83 destinations throughout the United States, Mexico, and Costa Rica and maintains hubs at...
to operate as Frontier JetExpress out of Denver. The Frontier codeshare ended in 2003. In 2003, Mesa reestablished a codeshare agreement with United, operating as United Express. In 2005, Mesa negotiated a codeshare agreement with Delta for Freedom Airlines to operate as a Delta Connection carrier.
By 1999, Mesa returned to profitability. Mesa acquired CCAir
CCAir
CCAir, Inc. was a regional airline headquartered in Charlotte, North Carolina, United States.CCAir was created in 1987 when Sunbird Airlines was renamed. Operating as a Piedmont Commuter / USAir Express code-sharing partner, its radio call sign was "Carolina". The CC stood for Carolina Commuter...
and its USAir Express codeshare in 1999. It continued to operate CCAir as a separate operation. By 2002, CCAir ceased operations due to high costs and its assets and employees were absorbed into Mesa. The latest merger attempt was in 2003, when Mesa offered to acquire Atlantic Coast Airlines
Atlantic Coast Airlines
Atlantic Coast Airlines was an airline based in the United States owned by Atlantic Coast Holdings, Inc.. It operated as United Express for United Airlines and Delta Connection for Delta Air Lines. It was headquartered in the Dulles area of unincorporated Loudoun County, Virginia, United States....
. Its offer was refused, and ACA went on to operate independently as Independence Air
Independence Air
Independence Air was a low-cost airline, owned by FLYi, Inc., headquartered in the Loudoun Gateway Corporate Center in Dulles, unincorporated Loudoun County, Virginia, United States that operated from 1989 until 2006. Its route network focused on the East Coast of the United States, but it also...
and later ceased operations in January, 2006. In 2006, Mesa began operating in Hawaii under the brand go!
Go! (airline)
Go! , based in Honolulu is a regional brand of Phoenix, Arizona based Mesa Airlines. Go! operates inter island services within Hawaii. Its main base is Honolulu International Airport...
and established a codeshare agreement with Mokulele Airlines
Mokulele Airlines
Mokulele Airlines, is an American commuter airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii. The airline operates scheduled inter-island and charter flights primarily among Hawaii's smaller airports.-History:...
, where Mokulele will operate as a go! Express carrier.
Hawaiian market entrance and related lawsuits
In 2004, Mesa Air Group met with Hawaiian AirlinesHawaiian Airlines
Hawaiian Airlines, Inc. is a major airline of the United States. It is the largest airline based in the State of Hawai'i, and is the 11th largest commercial airline in the country. Based in Honolulu CDP, City and County of Honolulu, the airline operates its main hub at Honolulu International...
and Aloha Airlines
Aloha Airlines
Aloha Airlines was an American airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii, operating from a hub at Honolulu International Airport...
, both in bankruptcy at the time, and reviewed operational records and forecasts, but ultimately decided not to acquire or invest in either carrier. In 2006, after Mesa announced plans for its "go!" sub-branded airline in Hawaii, Hawaiian Airlines sued to block the launch, claiming that Mesa had violated a confidentiality agreement. Aloha Airlines filed a similar suit against Mesa later that year.
In September 2007, the CFO of Mesa Air Group was placed on administrative suspension as irregularities were investigated during the Hawaiian Airlines case. In an announcement, Mesa Air Group CEO Jonathan Ornstein assured shareholders and investors that "the alleged misconduct does not involve the financial controls, financial statements or operations of the Company." The judge overseeing the Mesa go! case, however, ruled Mesa destroyed evidence. and ordered Mesa Air Group to pay an $80 million interest bearing settlement with interest, along with legal fees, to Hawaiian Airlines.
Aloha Airlines ceased operations in March 2008, and the Aloha Airlines suit was settled in November 2008. Mesa agreed to pay $2 million, 10% of Mesa's common stock, and provide travel benefits on go! for former Aloha employees. Initially the settlement agreement included a provision whereby Mesa Air Group could license the Aloha name, but a federal judge rejected that agreement on the basis of Mesa's alleged misconduct in the Hawaii market.
Mokulele acquisition
In October 2009, it was announced Mesa Air Group's divisional subsidiary "go!" would be taking over all of the Hawaii flying done by Mokulele AirlinesMokulele Airlines
Mokulele Airlines, is an American commuter airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii. The airline operates scheduled inter-island and charter flights primarily among Hawaii's smaller airports.-History:...
and R.A.H.'s
Republic Airways Holdings
Republic Airways Holdings, Inc. is an aviation holding corporation based in Indianapolis, Indiana, which owns six airlines operating in the United States: Chautauqua Airlines, Frontier Airlines, Republic Airlines, Shuttle America, and the former Lynx Aviation....
Shuttle America
Shuttle America
Shuttle America Corporation is a regional airline based in Indianapolis, Indiana, USA. It feeds United Airlines flights at Chicago, Denver, and Washington as United Express, and feeds Delta Air Lines flights at Atlanta and New York as Delta Connection and Delta Shuttle.-History:Shuttle America...
. Mokulele operates a vast fleet of 4 Cessna Caravan aircraft, but is a significant competitor to "go!" with its outsourced Hawaii regional flying. It has not been determined if Mesa Airlines
Mesa Airlines
Mesa Airlines, Inc. is an American regional airline based in Phoenix, Arizona. It is a FAA Part 121 certificated air carrier operating under air carrier certificate number MASA036A issued on June 29, 1979. It is a subsidiary of Mesa Air Group. It was known briefly as Mountain West Airlines from...
or Mokulele's IATA airline code will be adopted by the agreement with Mesa Air Group.http://www.stockhouse.com/News/USReleasesDetail.aspx?n=7484982
Bankruptcy filing
On January 5, 2010, Mesa Air Group filed for Chapter 11 bankruptcy protection in a New York City bankruptcy court. The company indicated that it will continue operations as normal. The company's Go! MokuleleGo! Mokulele
go! Mokulele is an American business marketing inter-island flights within the state of Hawaii. The business is a joint venture of Mesa Air Group and Republic Airways Holdings, created in October 2009 when the companies merged their competing airline business subsidiaries, go! and Mokulele...
subsidiary was not included in the filing, Per bankruptcy records, upon Mesa Air Group's exit from bankruptcy, US Airways Group
US Airways Group
US Airways Group Inc. is an airline holding company based in Tempe, Arizona. US Airways Group operate US Airways, along with its subsidiaries PSA Airlines, Inc. and Piedmont Airlines, Inc., which are wholly owned but marketed under the branding of US Airways Express...
will own a 10 percent stake in the operation. The company emerged from bankruptcy protection on March 1, 2011, as a privately held company with a new board of directors and having eliminated 100 excess aircraft.
Labor groups
Mesa Air Group labor groups are represented by several labor organizations:- Flight attendants are represented by the Association of Flight AttendantsAssociation of Flight AttendantsThe Association of Flight Attendants-CWA is a union representing Flight Attendants in the United States. In 2011, AFA represents nearly 60,000 Flight Attendants at 24 airlines, making it the world's largest Flight Attendant union. Focused 100% on Flight Attendant issues, AFA has been the leader in...
(AFA). Its contract became amendable in June 2006. Mesa and its flight attendants are currently in contract negotiations. - Pilots from its three airline subsidiaries are merged in a single common seniority list and are represented by the Air Line Pilots Association (ALPA). Its contract was ratified in December 2008 and becomes amenable in December 2010.
Fleet
Data as of September 30 of each year.| Type > | 20061 | Seats | Orders/ Options |
2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 | 1995 |
| Bombardier CRJ 900 Bombardier Canadair Regional Jet The Bombardier CRJ is a family of regional airliners manufactured by Bombardier:* CRJ100 - 50 seats* CRJ200 - 50 seats* CRJ700 - 70 seats* CRJ705 - 75 seats* CRJ900 - 90 seats* CRJ1000 - 100 seats... |
38 | 86 | 4/112² | 37 | 24 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Bombardier CRJ 700 Bombardier Canadair Regional Jet The Bombardier CRJ is a family of regional airliners manufactured by Bombardier:* CRJ100 - 50 seats* CRJ200 - 50 seats* CRJ700 - 70 seats* CRJ705 - 75 seats* CRJ900 - 90 seats* CRJ1000 - 100 seats... |
18 | 64 | 0/112² | 15 | 15 | 15 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Bombardier CRJ 100/200 Bombardier Canadair Regional Jet The Bombardier CRJ is a family of regional airliners manufactured by Bombardier:* CRJ100 - 50 seats* CRJ200 - 50 seats* CRJ700 - 70 seats* CRJ705 - 75 seats* CRJ900 - 90 seats* CRJ1000 - 100 seats... |
60 | 50 | 0/0 | 56 | 54 | 43 | 34 | 32 | 32 | 26 | 16 | 7 | 0 | 0 |
| Embraer ERJ-145 | 36 | 50 | 0/64 | 36 | 36 | 32 | 32 | 21 | 8 | 0 | 0 | 0 | 0 | 0 |
| Fokker 70 | 0 | 70 | 0/0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 2 |
| Dash 8-100 | 12³ | 37 | 0/0 | 0 | 0 | 0 | 6 | 7 | 10 | 10 | 0 | 0 | 0 | 0 |
| Dash 8-200 | 16 | 37 | 0/0 | 16 | 16 | 12 | 18 | 19 | 22 | 22 | 12 | 12 | 5 | 0 |
| Dash 8-300 | 0 | 50 | 0/0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 7 |
| Embraer Brasilia | 24 | 30 | 0/0 | 2 | 6 | 6 | 6 | 6 | 7 | 7 | 7 | 28 | 32 | 34 |
| Beechcraft 1900 Beechcraft 1900 The Beechcraft 1900 is a 19-passenger, pressurized twin-engine turboprop airplane manufactured by the Beechcraft Division of the Raytheon Company . It was designed, and is primarily used, as a regional airliner... D |
345 | 19 | 0/0 | 35 | 35 | 42 | 46 | 59 | 61 | 78 | 96 | 118 | 114 | 113 |
| Jetstream | 0 | 19 | 0/0 | 0 | 0 | 0 | 0 | 9 | 14 | 16 | 0 | 21 | 21 | 21 |
1As of December 31, 2006
²4 firm orders and 112 total options for CRJ-700/900 aircraft. Mesa took delivery of 3 CRJ-700 aircraft during 2006.
³During 2006 Mesa acquired 12 used Dash-8-100s for Freedom Airline's Delta Connection service at New York's John F. Kennedy Airport.
4Since 1998, all of Mesa's EMB-120 aircraft have been in long-term storage awaiting return to their lessors.
514 of Mesa's B1900D aircraft are leased to other carriers: 10 to Big Sky
Big Sky Airlines
Big Sky Airlines was an American regional airline that operated from 1978 to 2008. Headquartered in Billings, Montana, United States. Big Sky was wholly owned by Big Sky Transportation Company, a wholly owned subsidiary of MAIR Holdings....
, and 4 to Gulfstream
Gulfstream International Airlines
Gulfstream International Group, Inc., operating as Gulfstream International Airlines , is a United States airline based in Fort Lauderdale, Florida. It operates scheduled and charter services to Florida and Bahamas and the Caribbean. It operates as a United Express carrier for United Airlines...