Friday, January 8, 2010

Mesa Air files for bankruptcy protection

Regional carrier flies connectors, expected to operate normally

ATLANTA - In May, Mesa Air Group Inc. warned it would file for bankruptcy if Delta Air Lines Inc. succeeded in canceling a flying contract with the regional carrier that operates flights for major airlines. More than seven months later, despite blocking the move in court, Mesa filed for Chapter 11 anyway on Tuesday, hoping to shed planes it no longer needs.

Mesa's filing is part of broader problems the airline has been experiencing with its operations as demand for air travel fell over the last year due to the economic downturn.

Contract carriers like Mesa have traditionally been able to maneuver through tough economic times because they have guaranteed revenue through deals with major airlines for whom they feed passengers and handle connecting flights. But during the recession, in which big airlines cut capacity, Mesa struggled operationally and faced friction with key partner Delta. In contrast, SkyWest, another regional carrier, has seen its profits rise as it did more flying for its big-airline customers.

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