Jump to content

Mesa Air Group

From Alfawiki
Mesa Air Group, Inc.
Company typePublic
IndustryCommercial aviation
Founded1982
FounderLarry Risley, Janie Risley
Headquarters
Phoenix, Arizona
,
United States
Area served
United States, District of Columbia, Canada, Mexico, The Bahamas, Cuba
ProductsRegional airline services (Mesa Airlines)
Number of employees
187 (in 1987; more recent number not specified)

Mesa Air Group, Inc. is a commercial aviation holding company incorporated in Nevada and headquartered at 410 North 44th Street, Suite 700, located in the Camelback East district of Phoenix, Arizona, United States. The enterprise oversees a single regional airline subsidiary, Mesa Airlines, which operates flights as United Express and, until 2023, also flew under the American Eagle brand through agreements with United Airlines and American Airlines.

Established in 1982 by entrepreneurs Larry and Janie Risley in Farmington, New Mexico, Mesa shifted its corporate headquarters to Phoenix in 1998. Demonstrating their dedication as founders, the Risleys financed the launch by mortgaging their personal residence.

By June 2022, Mesa maintained a fleet comprising 167 aircraft, facilitating over 457 daily departures to 120 destinations spanning the United States, the District of Columbia, Canada, Mexico, The Bahamas, and Cuba—highlighting its extensive operational footprint and international reach.

Airlines

Previous airlines and subsidiaries

History

The origins of Mesa trace back to 1980 when JB Aviation, a fixed-base operator at Four Corners Regional Airport in Farmington, New Mexico, initiated a charter flight division alongside Mesa Air Shuttle, offering scheduled commuter services from Farmington to Albuquerque utilizing a five-seat Piper Saratoga. Subsequently, a nine-seat Piper Navajo was incorporated to serve routes between Farmington and Denver. In 1982, Larry Risley—an A&P mechanic at JB Aviation—and his wife Janie acquired the airline with an initial investment of $140,000. By mid-1983, they procured their first 14-seat Beechcraft 99 turboprop aircraft, expanding operations from Albuquerque to Durango, Colorado, as well as other destinations across New Mexico and Texas.

Facing competition from six other carriers including Air Midwest and Sun West Airlines, Mesa maintained viability during intense fare competition by adopting a low-cost model that included performing maintenance internally and employing staff who fulfilled multiple roles such as pilots, mechanics, gate agents, and ramp personnel.

In 1984, Mesa won its inaugural Essential Air Service (EAS) contract to provide service to Roswell, Hobbs, and Carlsbad after outbidding competitors. Additional EAS contracts followed for Silver City, Alamogordo, Las Cruces, Clovis, and Gallup.

By late 1985, Mesa introduced its first Beechcraft 1900 turboprop into the fleet and commenced scheduled flights to high-altitude airports including Telluride, Colorado and Angel Fire, New Mexico.

From six employees in 1982 to 187 by 1987, the company experienced significant growth; its fleet expanded from a single Piper Saratoga to numerous Beechcraft 99s and 1900s. Mesa established dominance in New Mexico’s regional market as rival airlines withdrew. Its Albuquerque hub offered 45 daily departures serving 17 cities with hourly service connecting Farmington.

Mesa became publicly traded on NASDAQ under the ticker MESA in 1987 through an initial public offering of 865,000 shares priced at $7.50 each. Extending beyond New Mexico’s borders, it acquired routes from Centennial Airlines covering Wyoming, Utah, and Colorado; introduced nonstop flights between Roswell and Dallas/Fort Worth; and deployed Cessna Caravans on smaller routes such as Taos and Ruidoso.

To foster company expansion and enhance pilot recruitment efforts, Mesa inaugurated an ab-initio flight training program in partnership with San Juan College in 1989 to develop a steady stream of qualified aviators.

Acquisitions and mergers

Beginning in 1989, Mesa embarked on an assertive acquisition campaign, which the airline sector referred to as "Mesa's annual deal growth."

In February 1989, Mesa established its initial codeshare agreement with Midwest Express and initiated Skyway Airlines based in Milwaukee. Later that year, in July, StatesWest Airlines made an unsuccessful bid to take over Mesa.

By February 1990, Mesa had purchased the Aspen Airways United Express hub and assets located in Denver, creating a Denver hub operating under United Express through a codeshare with United Airlines. The aircraft and the Denver-Aspen route formerly operated by Aspen were transferred to Air Wisconsin.

In 1991, Mesa acquired Air Midwest, which included its Kansas City hub and an existing codeshare with US Airways Express. The company also launched FloridaGulf Airlines from Tampa under the US Airways Express brand and entered negotiations to acquire WestAir Commuter Airlines.

The acquisition of WestAir was finalized in 1992, adding hubs in San Francisco, Los Angeles, Portland, and Seattle along with a United codeshare. Additionally, in October of that year, Mesa introduced a Phoenix hub functioning as America West Express through a codeshare with America West.

In 1993, Mesa ended its codeshare with Midwest Express. Utilizing former Skyway resources, the company launched Superior Airlines in Columbus as America West Express and CalPac in Los Angeles as United Express; both operations were subsequently merged back into Mesa Airlines.

Mesa expanded further by acquiring Pittsburgh-based Crown Airways in 1994, resulting in the formation of Liberty Express Airlines, which operated from Pittsburgh under US Airways Express.

March 1995 marked the introduction of Mesa's first regional jets, the Fokker 70, with the launch of Desert Sun Airlines from Phoenix serving destinations such as Des Moines and Spokane under America West Express.

Reorganization

The rapid growth Mesa experienced between 1989 and 1995 led to a fragmented corporate framework characterized by multiple independently operating airlines—each maintaining distinct labor groups, operational protocols, and codeshare agreements—resulting in inefficiencies across operations.

To remedy this complexity, Mesa created Mesa Holdings Corp in 1992 to manage its subsidiaries:

  • Air Midwest (Kansas City)
  • Mesa Airlines (America West Express Phoenix; FloridaGulf Airlines Tampa; United Express Denver)
  • Skyway Airlines (Milwaukee)
  • WestAir Commuter Airlines (West Coast hubs)
  • San Juan Pilot Training
  • Desert Turbine Services

In 1995, Mesa Holdings was rebranded as Mesa Air Group; concurrently, Mesa Airlines was renamed Mountain West Airlines. The group then encompassed:

  • Air Midwest (Kansas City/USAir Express)
  • Desert Sun Airlines (Phoenix/America West Express)
  • FloridaGulf Airlines (Tampa/USAir Express)
  • Liberty Express Airlines (Pittsburgh/USAir Express)
  • Mountain West Airlines operating as Mesa Airlines (Albuquerque), United Express (Denver, Los Angeles, Portland, Seattle), America West Express (Phoenix)
  • WestAir Commuter Airlines (West Coast/United Express)
  • Desert Turbine Services
  • Four Corners Aviation
  • Mesa Pilot Development
  • Regional Aircraft Services

In 1996, flight dispatch operations were centralized in Farmington, New Mexico, while training and human resources functions were consolidated in Fort Worth, Texas. To simplify maintenance and reduce complexity caused by operating six different aircraft models (Short 360, BAe Jetstream 31, Embraer EMB-120 Brasilia, Beechcraft 1900, DHC-8 Dash 8, Fokker 70), Mesa streamlined its fleet to three types: Beechcraft 1900, Dash 8, and Canadair CRJ. The company also secured an agreement with Bombardier for 16 Canadair Regional Jets (CRJs) with options for an additional 32 units.

After pilot unionization occurred across six groups in 1994, a single seniority list was established under the Air Line Pilots Association (ALPA) by 1996, culminating in a collective bargaining agreement spanning five years.

With CRJ deliveries commencing in 1997, Mesa began operating CRJs out of Phoenix and launched an independent hub at Fort Worth Meacham Airport serving routes from Houston, San Antonio, Austin, and Colorado Springs to Nashville and San Antonio. This Fort Worth operation was discontinued within one year due to underperformance.

Challenges and Loss of the United Codeshare

After extended negotiations in 1997, Mesa and United were unable to renew the codeshare agreement with WestAir, resulting in United awarding those routes to SkyWest Airlines. United formally announced it would not continue the WestAir codeshare, and Mesa’s efforts to reestablish the partnership were unsuccessful.

Mesa experienced numerous customer service issues within its Denver United Express operations, which prompted a Congressional investigation. The financial strain increased due to higher expenses associated with relocating to Denver International Airport combined with fare reductions imposed by United. To address these financial pressures, Mesa scaled back and ultimately ceased its Denver hub services in September 1997. United contended that this action violated their codeshare contract, leading both parties to mutually end the agreement.

The loss of the WestAir and Mesa codeshare immediately resulted in grounding 87 out of Mesa’s 184 aircraft—nearly half of its fleet—including Jetstreams, Brasilias, and Beech 1900s. In response, Mesa stored numerous planes, sold 10 Brasilias to SkyWest, traded others for CRJs, sold Beech 1900s to Great Lakes Airlines, and returned some aircraft to Beechcraft/Raytheon. WestAir itself ceased operations in 1998.

From late 1997 through early 1998, Mesa also grappled with crew shortages and scheduling complications partly caused by the FAA-mandated transition from FAR Part 135 to Part 121 operations. These difficulties led to flight cancellations and additional aircraft being grounded. Furthermore, America West terminated its codeshare partnership with Mesa in 1997.

Recovery and Restructuring

In 1998, Jonathan Ornstein took over as CEO of Mesa Air Group, replacing all corporate executives and relocating the company’s headquarters from Farmington to Phoenix. Larry Risley remained as a board member. The turnaround plan emphasized modernizing the fleet, realigning codeshare agreements, and enhancing customer experience.

Mesa streamlined its turboprop fleet by transferring remaining Beechcraft 1900 aircraft to Air Midwest by the year 2000 while focusing on acquiring jets. In 1999, the airline placed an order for 36 Embraer ERJ-145 jets with options for an additional 64; subsequently in 2001, it ordered CRJ-700s and CRJ-900s along with options for more units. Due to US Airways’ restrictions on operating larger jets under Mesa Airlines’ certificate, Mesa established Freedom Airlines as a subsidiary specifically for these aircraft. Following US Airways’ bankruptcy and resolution of union issues, Freedom Airlines was merged back into Mesa Airlines in 2003.

Mesa successfully resecured important codeshare agreements: with America West (1998), expanded USAir partnerships, Midwest Express (2001), Frontier Airlines under Frontier JetExpress branding (2001–2003), United Express (2003), and Delta Connection operated through Freedom Airlines (2005).

By 1999, Mesa had returned to profitability and acquired CCAir along with its USAir Express codeshare. However, CCAir ceased operations by 2002 due to excessive costs; its assets were absorbed into Mesa’s operations. In 2003, Mesa’s bid to acquire Atlantic Coast Airlines was declined; ACA later operated independently as Independence Air before shutting down in 2006. That same year, Mesa entered the Hawaiian market through the launch of the go! brand and formed a codeshare partnership with Mokulele Airlines under the name go! Express.

Entry into Hawaiian Market and Associated Litigation

In 2004, Mesa Air Group assessed investment opportunities in Hawaiian Airlines and Aloha Airlines amid their bankruptcy proceedings but ultimately decided against investing. Following the launch of its Hawaiian sub-brand "go!" in 2006, Hawaiian Airlines initiated legal action against Mesa for violating a confidentiality agreement; later that year, Aloha Airlines filed a comparable lawsuit.

In September 2007, Mesa's CFO was suspended as investigations related to the Hawaiian litigation commenced. CEO Jonathan Ornstein assured stakeholders that these issues did not compromise the company’s financial oversight or daily operations. Nevertheless, the court found that Mesa had destroyed evidence and mandated an $80 million settlement plus legal costs payable to Hawaiian Airlines.

Aloha Airlines terminated its operations in March 2008, with its lawsuit resolved by November of the same year. Mesa consented to a $2 million payment, transferred 10% of its common stock, and granted travel privileges on go! to former Aloha employees. Although the initial agreement permitted Mesa to use the Aloha brand name, a federal court later prohibited this due to Mesa’s improper conduct within the Hawaii market.

Mokulele acquisition

In October 2009, Mesa Air Group’s subsidiary go! assumed control of all Hawaii-based operations previously managed by Mokulele Airlines and R.A.H.'s Shuttle America, rebranding the combined services as go! Mokulele. The acquisition retained Mokulele’s fleet of four Cessna Caravan aircraft, while Shuttle America’s Embraer 170 jets were withdrawn from Hawaiian routes.

Bankruptcy filing

On January 5, 2010, Mesa Air Group sought protection under Chapter 11 bankruptcy in New York but maintained uninterrupted service throughout the process. The Go! Mokulele division was excluded from this bankruptcy filing. Upon emerging from bankruptcy on March 1, 2011, Mesa transitioned to private ownership with a revamped board of directors, eliminated approximately 100 surplus aircraft, and saw US Airways Group acquire a 10% ownership stake.

Mokulele divestiture

Mesa sold off Mokulele's Cessna Caravan fleet and related operations in December 2011. By June 2012, the company discontinued the "go! Mokulele" brand and reverted to using "go!" exclusively.

Merger with Republic Airways

On April 7, 2025, Republic Airways Holdings declared an all-stock merger agreement with Mesa Air Group. Post-merger ownership will allocate about 88% of shares to Republic shareholders and between 6% and 12% to Mesa shareholders. Pending regulatory approval anticipated later in 2025, this merger will establish a larger regional airline operating roughly 310 Embraer 170/175 aircraft with over 1,250 daily flights.

Following the merger, Republic will continue its partnerships with American Airlines, Delta Air Lines, and United Airlines; simultaneously, Mesa will maintain its existing decade-long contract with United. Prior to consolidation, Mesa operated around 60 leased Embraer 175 aircraft. This union positions Republic and SkyWest Airlines as the two foremost independent regional carriers in the U.S.

Labor groups

Mesa Air Group’s workforce is represented by major labor organizations: flight attendants are represented by the Association of Flight Attendants (AFA), with contract talks ongoing since June 2006; pilots from all three subsidiaries are members of the Air Line Pilots Association (ALPA), which ratified a contract in December 2008 valid through December 2010.

Mesa Angels Foundation

Mesa Air Group is the benefactor of the Mesa Angels Foundation, an organization dedicated to offering financial support to employees and their families during severe challenges such as health crises or natural calamities. Additionally, the foundation contributes to philanthropic initiatives within the communities where Mesa conducts its operations.

External links

Retrieved from "https://www.alfawiki.org/index.php?title=Mesa_Air_Group&oldid=9748"