Mesa Air Group says that its Texas-based regional-jet operation, started in May with two Bombardier Canadair Regional Jets (CRJs), is growing more slowly than anticipated. Marketing of the initial Fort Worth-Houston service is being intensified, and Fort Worth-San Antonio flights will be added in September, with a San Antonio-Colorado Springs service following in October.
The expense of starting up the regional-jet operation helped push Mesa to a $2.5 million net loss for the quarter ended 30 June, from a $6.5 million profit a year earlier. The service started with 11 daily round trips to Houston, but will be adjusted to six each to Houston and San Antonio, still using two CRJs. A third will be added for the three-times-daily Colorado Springs service. Marketing is increasing load factors, the company says.
Mesa, meanwhile, is negotiating with United Airlines to increase fares or reduce services on its unprofitable United Express operations out of Denver. The group is still disputing United's decision to transfer some Express services out of Los Angeles to Skywest Airlines, although United subsequently granted Mesa the right to operate the eight aircraft affected on new Express services in California.
Mesa cites other reasons for its plunge to a $4.4 million loss for the nine months to 30 June, from a $22.3 million profit a year earlier. These include the costs of a new pilots' contract and of upgrading to Part 121 operations. Despite being short of pilots, the group has had to send on leave 81 ground-school graduates because of delays in approval of the RaytheonBeech 1900D simulator-training programme required under Part 121.
Source: Flight International
