Mesa Air Group plans to purchase CCAir, the independent carrier that provides service as US Airways Express in the south-east USA. The acquisition is being touted by Mesa management as an "excellent fit" and is seen as part of the regional carrier's struggle back to stability after a difficult year.
Mesa and CCAir have much in common. Mesa also is a US Airways Express operator and the two carriers are linked through the Barlow Investment partnership, which holds shares in both companies.
Mesa posted a $49 million loss in 1997 and saw operating costs almost double to $200 million. A dispute with one of its major code-share partners, United Airlines, ended up with Mesa losing its contract to operate as a United Express feeder. A major management shakeup has since put in former Virgin Express chief Jonathan Ornstein as president and chief executive officer at Mesa, and it is Ornstein who is instrumental in the CCAir acquisition plan. The $60 million deal, of which $15 million is assumed debt, would be an all-stock transaction. Mesa is hopeful of concluding an agreement within six months.
Source: Airline Business
