Mesa Airlines files for Chapter 11
Mesa Air Group has filed for Chapter 11, a move that isn't expected to impact air service for travelers at Yuma International Airport.
Mesa provides regional air service for people flying to Phoenix and those passengers continuing on with connecting service with US Airways.
"We've been assured that absolutely nothing will change here," said Gen Gross, corporate account manager for the Yuma airport, Wednesday.
"This should not pose any concern to our customers flying from Yuma International Airport to Phoenix Sky Harbor," she said. "When you come to the airport, you will see the same employees working for Mesa, doing the same job and handling the exact same flight schedule. If you have travel plans, don't worry about them. If you are planning a trip, you can do it with confidence."
The process allows Mesa Airlines to restructure their financial obligations to provide better customer service, Gross said. "This is part of a normal business process that many airlines have gone through in the past few years."
Mesa announced Tuesday that it has commenced a financial restructuring through the voluntary filing of petitions to reorganize under Chapter 11 in the U.S. Bankruptcy Court in New York.
During the restructuring, Mesa will continue to operate as normal, without interruption, company officials said on the airline's Web site. That includes the airline's code-share agreements with its partners US Airways, United Airlines and Delta Air Lines. Mesa’s go!-Mokulele joint venture, an independent Hawaiian inter-island operation, is not included in the filing.
“We remain committed to our partners and customers by providing continued low cost regional air service that has permitted Mesa to become a leading regional airline,” Mesa Chairman and CEO Jonathan Ornstein said in a statement on the airline's Web site. He added that the company has enough liquidity to support itself during the restructuring.
In its bankruptcy filing, Mesa listed $975.5 million in assets and $868.6 million in debts. Mesa and 10 affiliates were included in the petition.
Ornstein said in the statement that the airline has spent the past two years working with lessors, creditors and others in order to restructure its financial obligations, which in turn helped it get rid of more than $160 million in debt obligations, rework inventory management and engine overhaul deals and return some planes.
‘‘The agreements between regionals and majors have been under increased scrutiny to better match or better calibrate the margins that the regionals receive from their major partner,’’ said Doug Abbey, an independent airline consultant in Washington.
Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.
The Associated Press contributed to this report.
