Regional players are suffering big , and shortage of pilots is killing them. The Airline, that offered leading package of hourly rates for the Captains and first officers for the first time in the month of August is now getting dropped by Its bigger Partner.
Post Pandemic , it's a different world now , specifically when pilots and Aviation staffs are in high demand . Mesa Airlines tried to attract Pilots and sort out the operational issues , but apparently it was not enough to continue its partnership with American Airlines.
American Airlines has cited concerns about its partner’s financial and operational problems for the separation and the development is going to increase the woes of Mesa Airlines for sure.
Even after the offer of an industry leading package of hourly rates for the Captains and first officers , turnout was not impressive ; and experts believe , financial and operational problems cited by American Airlines has direct relationship with this derth of Regional Pilots, being absorbed by bigger Players.
“As a result, we have concerns about Mesa’s ability to be a reliable partner for American going forward,” Derek Kerr, American’s chief financial officer and the president of American’s regional brand American Eagle, said in a staff note, which was seen by CNBC on Saturday. “American and Mesa agree the best way to address these concerns is to wind down our agreement.”
Earlier in the year , Shortage of Pilots had prompted American Airlines to end the Regional services to some airports in Iowa, New York and Ohio , starting September.
The operational irregularities had forced American Airlines to release statement saying, it will cease the services to the Dubuque Regional Airport in Iowa, the Long Island MacArthur Airport and the Ithaca Tompkins International Airport, which are in New York and the Eugene F. Kranz Toledo Express Airport in Ohio, on September 7th.
When many other airlines showing operational profits , Mesa has reported a net loss of about $67 million in the nine months ended June 30. Increasing costs are definitely hurting the carrier as it has postponed the quarterly earnings report. The Company expects to file the 2022 10-K as soon as practicable and no later than the December 29, 2022.
American Airlines is confident on its wholly owned regional subsidiaries like Envoy and PSA , and it does not expect much disruption as the agreement with Mesa was limited to its hubs at Dallas/Fort Worth International Airport and Phoenix Sky Harbor International Airport.
Additionally, regional carrier SkyWest and Air Wisconsin are going to fly for the American Eagle brand , as per the statement of Derek Kerr .
The final Mesa flight for American will be on April 3 though American is slashing Mesa flights in March, Kerr said in his note.
“The flying previously done by Mesa will be backfilled by these high-quality regional carriers as well as our mainline operation, ensuring we can continue to build and deliver the very best global network for our customers,” added Kerr.
Mesa Airlines has something to say , it has acknowledged the new scenario and communicated to its employees by saying , it's going to transition all of its CRJ900 aircraft to United after the end with American Airlines, and the development is 'positive and exciting' .
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