The Mesa Air Group expects to complete its $53 million acquisition of Charlotte, North Carolina-based CCAir in May. The two carriers, which have entered into a merger agreement, were linked through the Barlow Investment partnership, which has minority shareholdings in both.
The all-stock transaction, announced last August, remains subject to CCAir and Mesa shareholder endorsement and regulatory approvals. Mesa Air Group is the parent of Mesa Airlines, which has struggled with losses after failing to renew its code-share agreement to act as a United Express feeder.
Early last year, it closed its WestAir Commuter division, but was able to sign a new six-year code-share pact with America West Airlines. A dozen Bombardier Canadair 50-seat CRJ-200 regional jets fly in US Airways Express colours. The merger could open the door for Mesa to introduce RJs into CCAir's system.
CCAir, which also provides service as US Airways Express, operates an all-turboprop fleet of eight de Havilland Dash 8s and 20 British Aerospace Jetstream Super 31s (J32s).
Jonathan Ornstein, Mesa's president and chief executive, says CCAir "represents a significant strategic acquisition for Mesa and is an integral part of Mesa's long-term business strategy."
Mesa Air reported a net loss of $53 million for its fiscal year ending 30 September 1998, but first quarter FY1999 net income was $2.3 million on revenues of $77 million. It was Mesa's first profitable quarter in two years.
Ornstein says Mesa will grow its regional jet operations, while pondering what to do with its 19-seat turboprops and its money-losing Jacksonville, Florida-based regional operations previously known as FloridaGulf.
"While parts of our business are performing very well, other parts, primarily much of our 19-seat operations continue to incur substantial losses," he warns.
Source: Flight International
