Brief: Mesa Air Group Enters New Agreements with United Airlines for Improved Operating and Financing Terms and Provides Update on CRJ-900 Asset Sale Program
18/01/2024 22:42
Jan 18 (Reuters) - Mesa Air Group Inc MESA.O :
* MESA AIR GROUP ENTERS NEW AGREEMENTS WITH UNITED AIRLINES
FOR
IMPROVED OPERATING AND FINANCING TERMS AND PROVIDES UPDATE ON
CRJ-900 ASSET SALE PROGRAM
* MESA AIR GROUP INC - ALSO ISSUED AN UPDATE ON ITS EFFORTS
TO
SELL EXCESS CRJ-900 ASSETS TO REDUCE DEBT AND BOLSTER LIQUIDITY
* MESA AIR GROUP INC: ESTIMATED TOTAL DEBT BALANCE $539.7
MILLION
AT END OF Q4 2023
* MESA AIR GROUP - SINCE SEPT 2023, SOLD OR ENTERED
AGREEMENTS TO
SELL EXCESS CRJ-900 AIRCRAFT AND RELATED ENGINES FOR GROSS
PROCEEDS OF $198.0 MILLION
* MESA AIR GROUP: AS PER DEAL, INCREASED BLOCK-HOUR RATE IN
UNITED CPA, RETROACTIVE TO OCT 1, 2023 THROUGH DEC 31, 2024
* MESA AIR GROUP: INCREASED BLOCK-HOUR RATE IN UNITED CPA
PROJECTED TO GENERATE ABOUT $63.5 MILLION IN INCREMENTAL REVENUE
OVER NEXT 12 MONTHS
* MESA AIR: PROJECTED TOTAL DEBT BALANCE OF $310.3 MILLION
AT
FISCAL YEAR 2024 END
* MESA AIR GROUP INC - MESA AND UNITED ALSO AGREED TO AMEND
CERTAIN NOTICE REQUIREMENTS RELATED TO EIGHT CRJ-900 AIRCRAFT
COVERED UNDER CPA
* MESA AIR GROUP INC - CO AND UNITED ALSO AGREED TO EXTEND
UNITED'S WAIVER OF UTILIZATION REQUIREMENTS FOR AIRCRAFT UNDER
CONTRACT UNTIL JUNE 30, 2024
* MESA AIR GROUP INC - REMAINS ENGAGED IN ADDITIONAL EFFORTS
TO
MARKET AND SELL EXCESS CRJ-900 ASSETS
Source text for Eikon: ID:nGNX51jlw1
Further company coverage: MESA.O
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