Posted on: 02 March 2011 by Ross McSweeny
Mesa Air Group’s Plan of Reorganization has gone into effect, allowing the company to emerge from Chapter 11 of the US Bankruptcy Code.
Mesa and its related subsidiaries entered bankruptcy protection on 5 January 2010 and its exit from bankruptcy protection in 13 months places the company among the fastest reorganisations in aviation history. Mesa declares that it is well positioned to compete aggressively in the regional aviation industry, having shed inefficient aircraft, significant debt and extended its partnership with US Airways.
In celebrating the company’s emergence, Mesa chairman and chief executive officer Jonathan Ornstein commented, “Today marks a new beginning for Mesa, one that allows the company to build on its almost 30-year history and re-establish ourselves as one of the world’s leading regional airlines. We are deeply appreciative of the support we have received during our reorganisation from our creditors, airline partners and employees, and we will work hard to repay this trust by building a successful Mesa Air Group.
“Upon our exit from bankruptcy, we will take the intensity and effort of the past 13 months and transfer it from the triage of the bankruptcy process to focus on opportunities that exist in our rapidly changing industry,” added Ornstein. “Throughout our bankruptcy the company’s operations remained at the highest level of reliability and safety. Our people did a fantastic job and nothing reflects their competitive spirit better than the fact that during our bankruptcy Mesa consistently delivered operational performance which continues to lead the regional airline industry in nearly every category monitored by the US Department of Transportation.
“This strong operational performance came during a time when many of our employees contributed to our financial savings by taking additional unpaid days off. This level of dedication and the resulting operational performance has provided a solid foundation upon which to return our airline to sustained profitability and future growth. In addition, through the restructuring process Mesa is among the first regional airlines to address the risks associated with 50-seat regional jet aircraft which have increasingly fallen out of favour with mainline carriers. We believe the elimination of exposure related to this fleet provides Mesa with a significant competitive advantage,” declared Ornstein.