United Airlines has agreed to purchase 18 Embraer 175 regional jets from partner Mesa Airlines in a sale-leaseback deal that will raise some $230 million for the regional carrier.
Phoenix-based Mesa disclosed the deal in a 7 January filing with the US Securities and Exchange Commission, adding that $142 million of sale proceeds will be allocated to paying off the carrier’s debt.
Mesa says that part of the deal, involving the sale of eight E175s, closed on 31 December. The remaining 10 regional jets will be transferred to United late this month or in early February.
The regional carrier says it will lease back each of the 18 aircraft from United following the deal’s closure.
Mesa also discloses an agreement with an unnamed “third party” in which it has agreed to sell 15 MHIRJ CRJ-900 airframes for a total of $19 million – “all of which will be used to pay down our loan with the US Treasury”, it says.
That deal is expected to be executed in stages through April and is subject to closing conditions.
Mesa, which flies exclusively as a regional partner for United, has been seeking financial and operational stability following a difficult transition away from flying on behalf of American Airlines and heavy pilot attrition.
In recent months, some reprieve has been provided by major US airlines slowing or freezing hiring.
The carrier said in December that it plans to “significantly increase daily aircraft utilisation rates” beginning this month. After working with United’s network planners, Mesa is seeking to boost utilisation from an average of 8.9 daily block hours to 9.5 block hours daily, with further increases to follow.
"While still below pre-Covid levels, the increase in utilisation is a result of significantly reduced attrition throughout all work groups, more optimal scheduling practices and improved operational performance," Mesa says.
