07 January 2010

Mesa - The Long Road to Retribution?

Nearly two years after Mesa stirred the ire of just about everyone in Hawaii for starting a war that led to the demise of Aloha, Mesa itself filed for Chapter 11.

It seems Mr Ornstein as CEO incurred a fair amount of "un"friends in his tenure at Mesa. Many of whom I would think, will not be unhappy to see his company's demise and hopefully to have him gone. But then I am only speculating and this is only a blog.

The reasons why Mesa failed could have been seen for a very long time. In the early 2000s, there were a lot of analysts emphasizing the coming problems of the Regional Jet model 50 seater model. As the fuel crisis deepened the over population of early model CRJs (from both Embraer and Canadair) worsened. And the biggest operator of these? Mesa.

There is a sad story potential that some service points operated by Mesa will suffer a loss of service as a result of this. So what will happen to Mesa? Probably a carve up. My guess is that Republic and Skywest will be likely players.


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