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Mesa Airlines Expand Relationship with United 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.

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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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