Most Read
Most E-mailed
E-mail Article
Print Article
McClatchy Newspapers
NEW YORK -- Mesa Air Group Inc. filed for Chapter 11 bankruptcy in order to eliminate excess aircraft and reach a faster a resolution in its lawsuit against Delta Air Lines, the airline said Tuesday.
Mesa stock fell nearly 54 percent Tuesday to 6 cents a share. The stock has been trading at bankruptcy levels since early 2008 when record-high oil prices helped to wipe out profits.
The Phoenix-based carrier said it had ample liquidity to support itself during the restructuring, which is expected to take about six months, said Mesa spokesman Brian Gillman.
The company doesn't expect any layoffs due to the bankruptcy, though ongoing fleet reductions will likely lead to a smaller workforce.
Mesa has 3,500 employees and operates 130 aircraft. There are also 52 leased aircraft, including 21 Beechcraft 1900s, that are parked and in disuse.
Listed assets and liabilities at Mesa were in the range of $500 million to $1 billion.
RSS Feeds
