Browse > Home / Commercial / Delta Cancels Freedom CRJ-900 Delta Connection Agreement

Delta Cancels Freedom CRJ-900 Delta Connection Agreement

Written by thomas · Filed Under Commercial 

August 5, 2008

thomas

PHOENIX, Aug. 5 /PRNewswire-FirstCall/ — Mesa Air Group Inc. (Nasdaq:
MESA) today announced that on August 1, 2008, Mesa received notification
from Delta that it is terminating Freedom’s CRJ-900 Delta Connection
agreement, once again alleging Freedom failed to maintain specified
operational performance, as outlined in the contract.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)

Mesa strongly disputes these allegations and intends to vigorously
defend its contractual rights. Mesa believes the cancellation was driven by
Delta’s stated intention to reduce capacity and its inability to reduce
aircraft at its wholly-owned Comair subsidiary without incurring
significant ongoing expense.

Freedom currently operates seven CRJ-900 regional jets for Delta
Connection, with a further seven aircraft scheduled to enter service by May
2009. The Company subleases the Aircraft from Delta for $1 per month per
aircraft and these aircraft will be returned to Delta in connection with
this termination with no further financial obligation to Mesa.

This latest action by Delta is at least the fourth instance in recent
months in which Delta has taken unilateral and disputed action against its
regional airline partners. This contract cancellation is not dissimilar to
Delta’s recent action against Freedom in respect to the ERJ-145 Connection
Agreement, which resulted in Mesa winning a preliminary injunction, in the
Federal Court in Atlanta, enjoining Delta from terminating that contract.

“For many years Delta has built a reputation of working closely with
its regional airline partners in a spirit of co-operation and good faith,”
said Mesa Air Group Chairman and CEO, Jonathan Ornstein. “We are
disappointed to see Delta now appears to have chosen a different approach
with its regional airline partners. We appreciate the difficulties faced by
Delta and remain willing to work cooperatively in the mutual best interests
of both companies,” Mr. Ornstein added.

Mesa currently operates 180 aircraft with over 800 daily system
departures to 124 cities, 38 states, the District of Columbia, Canada, the
Bahamas and Mexico. Mesa operates as Delta Connection, US Airways Express
and United Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as Mesa
Airlines and go!. 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 5,000 employees and was
awarded Regional Airline of the Year by Air Transport World magazine in
1992 and 2005. Mesa is a member of the Regional Airline Association and
Regional Aviation Partners.

http://www.mesa-air.com

» Próximo Post - Grupo Aeroportuario del Pacifico Reports on the Announcement of Avolar’s Suspension
« Post Aneterior - Rocket Racing League(R) Conducts Successful Rocket Racer Flights at EAA AirVenture

Comments

¿Tiene algo que decir?

You must be logged in to post a comment.