Mesa Air Group
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Mesa Air Group (NASDAQ: [MESA]
Approximately 99% of the company’s consolidated passenger revenues are derived from operations associated with code sharing agreements. These code sharing agreements allow an airline the use of its code-share partner’s flight designator code to identify flights and fares in computer reservation systems, permit use of logos, service marks, aircraft paint schemes and uniforms similar to the code-share partner’s and provide coordinated schedules and joint advertising.
The financial arrangement with Mesa’s code-share partners involves either a revenue-guarantee or pro-rate arrangement. Under the terms of revenue-guarantee code sharing agreements, the major carrier controls marketing, scheduling, ticketing, pricing and seat inventories. The code sharing airline receives a guaranteed payment based upon a fixed minimum monthly amount plus amounts related to departures and block hours flown in addition to direct reimbursement of expenses such as fuel, landing fees and insurance. Under the terms of pro-rate code sharing agreements, the code sharing airline receives an allocated portion of each passenger’s fare and pays all of the costs of transporting the passenger.
As of FY2005 the Mesa Air Group and its subsidiaries employed over 5,000 people.
Subsidiaries
- Mesa Airlines, Inc.
- Air Midwest, Inc.
- Freedom Airlines, Inc.
- MPD, Inc. operates training programs for student pilots in conjunction with San Juan College in Farmington, New Mexico and Arizona State University in Tempe, Arizona
- Regional Aircraft Services, Inc. performs aircraft component repair, certain overhaul services, and ground handling services, primarily to Mesa subsidiaries
- MAGI Insurance, Ltd. is a Barbados based captive insurance company
- Ritz Hotel Management Corp. manages the company’s Phoenix area hotel property used for crew training accommodations
- Mesa Air Group—Aircraft Inventory Management, LLC purchases, distributes and manages Mesa’s inventory of spare rotable and expendable parts
History
1982 -- Mesa founded by Larry and Janie Risley in Farmington, New Mexico with the purchase of the company's first airplane. The company expanded and grew over the next fifteen years, acquiring several competing regional air carriers in the process.
1986 -- Mesa listed on NASDAQ: [MESA]
1990 -- Mesa acquired Aspen Airways (an operator for United Express)
1991 -- Mesa acquired Air Midwest (an operator for USAir Express)
1991 -- Mesa opened a division FloridaGulf Airlines (an operator for USAir Express)
1992 -- Mesa's annual revenues exceed $100 million and the company achieves "National Airline" status
1992 -- Mesa acquired WestAir (an operator for United Express)
1992 -- Mesa named Air Transport World "Regional Airline of the Year"
1993 –- Larry Risley named Regional Airline Executive of the Year
1993 –- Mesa participated in America West bankruptcy restructuring
1994 –- Mesa's annual revenue reaches $500 million
1994 -- Mesa acquired assets of Crown Airways and set up a new division Liberty Express (an operator for USAir Express)
1995 –- Jonathan Ornstein named Regional Airline Executive of the Year
1995 –- Mesa's first Regional Jet operation
1996 -- Mesa agreed to purchase 21 Bombardier CRJ 200 aircraft
In 1997 and 1998, financial problems ended Mesa's partnership with United Airlines. Jonathan Ornstein, the company's former Executive Vice President and President of its Westair Holding, Inc. subsidiary, returned to Mesa to help the struggling carrier. His goal was to restore the confidence of Mesa's passengers, airline partners, regulatory authorities and shareholders. Under his leadership, Jonathan created a new corporate identity, inked a new six-year deal with codeshare partner America West, moved the company's headquarters from Farmington, N.M., to Phoenix, Arizona, and oversaw a comprehensive operational and financial restructuring, which paved the way for Mesa's return to profitability.
1998 –- Regional Jet Codeshare Agreement with US Airways
1998 –- Regional Jet Codeshare Agreement with America West
1999 -- Mesa acquired CCAir (an operator for US Airways Express)
1999 -- Mesa agreed to purchase 46 Embraer ERJ-145 aircraft with an option to acquire 45 additional aircraft
2001 -- Mesa agreed to purchase 15 Bombardier CRJ 700 aircraft and 25 Bombardier CRJ 900 aircraft. Mesa served as the launch customer for the Bombardier CRJ 900. Mesa set up subsidiary Freedom Airlines to operate the larger jets.
2001 –- Regional Jet Codeshare Agreement with Midwest Express
2002 -– Mesa Angels founded as a charitable employee special assistance program funded by employees
2002 -– 50th Regional Jet delivered
2003 -– Regional Jet Codeshare Agreement with United Airlines
2004 -– 100th Regional Jet delivered
2004 -- Mesa acquired assets of Midway Airlines (an operator for US Airways Express)
2005 -– Annual revenue reaches $1 Billion – “Major Airline” status
2005 -– Mesa named Air Transport World “Regional Airline of the Year”
2005 -– Mesa announced that subsidiary Freedom Airlines will begin operating up to 30 Embraer ERJ-145 aircraft for Delta Air Lines under the Delta Connection banner
2005 -– Mesa announced plans to create a new Hawaii based airline to provide service between Hilo, Honolulu, Kona, Lihue and Kahului beginning sometime in the first quarter of 2006. Service will be initially be provided with 50-seat Bombardier CRJ 200s.
2006 -– 150th Regional Jet entered service
2006 -- Mesa announced plans and began its Hawaiian operations on June 9th under the name go!
Mesa operated flights
- Mesa operates its own service under the Mesa Airlines brand, operated by Air Midwest with Beechcraft 1900D aircraft
- Mesa operates its own service under the go! brand, operated by Mesa Airlines with Bombardier CRJ-200 aircraft
- Under code sharing agreements for the following airlines:
- *US Airways as US Airways Express, operated by Mesa Airlines with Bombardier CRJ 900, Bombardier CRJ 200, De Havilland Canada Dash 8 and Embraer ERJ-145 aircraft under a revenue-guarantee code sharing agreement, and by Air Midwest with Beechcraft 1900D aircraft under a pro-rate code sharing agreement
- *United Airlines as United Express, operated by Mesa Airlines with Bombardier CRJ 700, Bombardier CRJ 200, and De Havilland Canada Dash 8 aircraft under a revenue-guarantee code sharing agreement
- *Delta Air Lines as Delta Connection, operated by Freedom Airlines with Embraer ERJ-145 and De Havilland Canada Dash 8 aircraft under a revenue-guarantee code sharing agreement
- *Midwest Airlines additionally codeshares on Air Midwest's US Airways Express flights at Kansas City under a pro-rate code sharing agreement
Fleet
Data as of December 31, 2005.| Type | Number | Seats | Orders/Options |
| Bombardier CRJ 200 | 56 | 50 | 0/0 |
| Bombardier CRJ 700 | 15 | 64 | 7/1121 |
| Bombardier CRJ 900 | 38 | 86 | 7/1121 |
| Embraer ERJ-145 | 36 | 50 | 0/45 |
| Beechcraft 1900D | 352 | 19 | 0/0 |
| De Havilland Canada Dash 8 | 16 | 37 | 0/0 |
17 firm orders and 112 total options for CRJ-700/900 aircraft
214 of Mesa's B1900D aircraft are leased to other carriers, 1 B1900 was taken out of service due to damage
Mesa Angels Foundation
Mesa Air Group, Inc. sponsors the Mesa Angels Foundation which provides financial assistance to those Mesa employees and immediate family members in critical financial need due to extraordinary circumstances such as medical emergencies, natural disasters or other unforeseen life-changing events. Mesa Angels Foundation also supports charitable organizations through donations in the communities Mesa serves.Directors
As of 2005, the directors of Mesa Air Group are:- Jonathan G. Ornstein, Chairman/CEO
- Daniel J. Altobello
- Robert Beleson
- Ronald R. Fogleman
- Joseph L. Manson
- Peter Nostrand
- Maurice A. Parker
External links
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