Airlines

Mesa Airlines Expand Relationship with United Airlines

A new, five-year contract between Mesa airlines and United Airlines is now being finalised. It will allow United Express to use the linked aircraft while compensating Mesa for the additional costs of operating regional jets. The new agreement would cover all of Mesa’s existing flying at American and could increase to 38 CRJ-900 aircraft, dependent upon the number of E-175s that Mesa is operating.

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The expected agreement with United anticipates Mesa would begin to place aircraft with United in March 2023. And continue to utilize all of its crew and maintenance locations. The agreement also provides for Mesa to open a CRJ-900 crew base in Houston and a new pilot base in Denver, CO, with the potential for other incremental crew bases.

Importantly, current and future pilots at Mesa will benefit from the anticipated new agreement with United, which is poised to offer the best combination of the highest pay rates and fastest career path to a major airline in the industry.

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To further enhance liquidity, Mesa is finalizing the previously announced sale of its remaining 8 CRJ-550s to United. Mesa has also reached an agreement to sell 11 surplus CRJ-900 aircraft to a third party. Once completed, the proceeds of these two transactions will significantly reduce debt and improve liquidity. Further, it is pursuing other avenues to increase liquidity through the sale of additional surplus aircraft, spare parts, and spare engines.

Additionally, Mesa recently negotiated improved terms and conditions with RASPRO, a Canadian special purpose finance company, on its leases for 15 CRJ-900 aircraft, and is finalizing an agreement with EDC, the Economic Development Corporation of Canada, and MHI RJ Aviation on debt associated with seven NextGen CRJ-900 aircraft.

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Airlines

Federal Court Imposes $100M Fine on Qantas for “Ghost Flights” Scandal

In a major ruling, the Federal Court has confirmed a hefty A$100 million penalty against Qantas for its involvement in the “ghost flights” scandal. As reported by FlightGlobal.

The court found that Qantas misled consumers by offering and selling tickets for flights that the airline had already decided to cancel. Adding to the controversy, Qantas failed to promptly notify ticket holders about these cancellations.

The penalty follows Qantas’ admission of violating the Australian Consumer Law (ACL). The airline agreed with the Australian Competition and Consumer Commission (ACCC) on the penalty amount, aiming to deter Qantas and other businesses from similar breaches in the future.

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The ACCC emphasized that this substantial fine sends a clear message: misleading customers will lead to serious consequences, regardless of a company’s size. In addition to the penalty, Qantas has committed to paying approximately A$20 million to affected passengers who unknowingly purchased tickets for canceled flights.

This compensation comes on top of any refunds or alternative flight arrangements already provided. ACCC Chair Gina Cass-Gottlieb praised the penalty, underscoring the importance of robust compliance programs red energy qantas in large corporations like Qantas.

She pointed out that Qantas has since made changes to its operating and scheduling procedures to prevent similar issues in the future.