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| Version | User | Scope of changes |
|---|---|---|
| Jun 1 2008, 9:42 PM EDT (current) | jimglab | 205 words added |
| Jun 1 2008, 9:40 PM EDT | jimglab |
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Company warns it could face Chapter 11 without it
A federal judge in Atlanta has granted Mesa Air Group’s request for a preliminary injunction blocking Delta Air Lines’ plan to end its Delta Connection partner contract with Mesa. Mesa subsidiary Freedom Airlines operates 34 50-seat jets and seven 76-seat jets under the Delta Connection banner. Delta recently told Mesa that it intends to terminate its contract with Freedom because the regional airline failed to maintain a specified completion rate during several recent months. Mesa indicated in a recent filing with the Securities and Exchange Commission that if Freedom Airlines loses its Delta Connection contract, the diminished revenues could force Mesa to file for Chapter 11 reorganization and protection from creditors. Mesa’s total fleet includes 181 planes that operate 1,000 daily departures, flying as Delta Connection, United Express and US Airways Express; Mesa also flies under its own brand, and owns the new inter-island carrier Go! in Hawaii. Meanwhile, Mesa also got word last week that its stock may be delisted by NASDAQ due to its late filing of a Form 10-Q with the SEC. Mesa said it intends to file the form this week, and has asked NASDAQ for a hearing to protect its listing.
