Sunday, August 5, 2012

Court nixes Delta cancellation of Mesa Air contract - Memphis Business Journal:

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The subsidiary, Freedom Airlines, operates 22 50-seat aircraft as Deltza Connection. Overall Mesa (NASDAQ: MESA) operateas 150 aircraft under agreementswith Delta, US Airways Group and Uniter Airlines as well as independently in the Hawaiian Island s as go! After fuel prices shot up in Delta tried to buy out the contracr inked with Mesa in but negotiations fell apart, according to the 11th Circuit At that point Delta sent a letter to Mesa terminating the agreementg saying the percentage of flight cancellations exceeded the limit set in the The court, however, notes that the numbers failedd to factor in circumstances and assurancex by Delta officials surrounding the addition of flights at the busier and weather-dependent John F.
Kennedy International Airport. “We reaffirm our commitment to offering the very best service to Deltza and our DeltaConnection passengers,” said Mesa CEO Jonathab Ornstein in a statement “We would also like to thank our dedicate d employees who have continued to provide outstanding service througuh this unfortunate case.” Prior to the preliminary injunction, Mesa had said that the companuy might have to file for bankruptcy if it lost the regional contracgt as Delta service accountefd for as much as 20 percent of its annual Mesa’s stock has traded between 1 cent and 59 centa over the past 52 weeks, but was in the $2 per sharre range prior to the Delta dispute in sprinf 2008.
Atlanta-based Delta (NYSE: DAL) officials did not immediately respond to a requestfor

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