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Old January 2nd, 2008, 10:39 PM
Miulang Miulang is offline
Join Date: Aug 2004
Posts: 8,759
Default Re: Hawaii's Interisland Air War - Chapter 4

More financial woes for Mesa. They have abruptly suspended service to 12 communities as of Dec. 31 (including Albuquerque) and are trying to sell off one of their subsidiaries, Midwest Air, due to large losses in the essential services sector. Wonder what's going to happen with go!Express (Mokulele) if they get out of the essential air services business?

Mesa Air Group is seeking a buyer for its unprofitable Wichita-based Air Midwest operations or for the division's fleet of Wichita-built Beech 1900D aircraft.

'We're continuing to pursue strategic options,' company spokesman Brian Gillman said Friday. He said the company is 'entertaining offers and pursuing strategies to sell all or a piece of the business.'

Air Midwest has lost money for the past several years, Gillman said. Operating the 19-seat aircraft became more expensive after the set of regulations the planes operated under changed, driving up costs.

Air Midwest, which does business as Mesa Airlines, operates 20 Beech 1900D aircraft primarily in the Midwest and in Arizona.

It primarily services federally subsidized markets under the government's essential air service program, including smaller Kansas communities. The program compensates airlines for serving underserved areas.

'The essential air service payment has not kept up with the cost of operating the aircraft,' Gillman said.

The company continues to serve the markets, including those in Kansas. No decisions have been made about the Kansas markets, Gillman said.
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