Mesa Airlines
has begun the process of calling back its furloughed pilots. Over the summer, the Phoenix-based regional carrier announced the furloughs
which affected 12 pilots in total.

The move was due to “significantly reduced attrition” following the airline’s falling out with American Airlines
last year. While a relatively small number of pilots were affected,

more than 40 trainees learned their upcoming training was deferred
.

Phasing out the CRJ900s faster

Mesa posted its third-quarter fiscal 2024 results last week. In its report, the carrier disclosed that it expects its finances to improve as its pilots will be flying more under a new contract with United Airlines
. The Chicago-based legacy airline has requested that Mesa flies Embraer E175s
exclusively.

United Express Embraer 175

Photo: Robin Guess | Shutterstock

Currently, Mesa still has a number of Bombardier CRJ900s in its fleet that formerly flew under a long-term contract with American Airlines, US Airways, and America West Airlines with a base at Phoenix Sky Harbor International Airport (PHX)
. Following its transition to operating solely for United, the carrier has drastically shrunk its CRJ900 fleet and favored the E175s. However, the CRJ900s have not been entirely phased out due to scope clause regulations.

Read More

Why Aren’t Mesa Airlines’ Bombardier CRJ900s Painted In United Express Colors?

It’s almost been 365 days since the regional jets were pulled from operating American Eagle-branded flights.

Now, United is aimed at accelerating the retirement of the aircraft. By March 1, 2025, Mesa’s fleet is expected only to comprise the E175. While it may seem simple to remove the CRJ900s and replace them with E175s, the move reportedly costs millions. Mesa disclosed that around $14 million is the expected cost associated with the transition.

Mesa Airlines Bombardier CRJ-900 (N920FJ) departing from Runway 7L at Phoenix Sky Harbor International Airport - August 26, 2023.

Photo: Robin Guess | Shutterstock

Jonathan Ornstein, the carrier’s CEO, explained that United will offer reimbursement.

“United has also agreed to reimburse Mesa for expenses associated with the transition to fully flying E-175 aircraft. The updated financial terms and our ongoing planning with United is critical as we rebuild our E-175 fleet utilization and margin runway through fiscal year 2025.”

The need for pilots

Ornstein also said that Mesa’s “third-quarter block-hours were negatively impacted” due to training its pilots to fly the E175s. However, the airline has since increased its block-hour rate in its agreement with United into next year, meaning there is a need for pilots once again.

“We currently have the pilot resources to fly increased E-175 block hours, and have started the process of recalling pilots from furlough in anticipation of improved aircraft utilization,” Ornstein stated.

United also agreed to purchase two of Mesa’s CRJ700s that were formerly leased to a third party. Those transactions result in total proceeds of $11.0 million. Nearly half of the amount will reportedly “pay down the related outstanding obligations.” It is unclear if the CRJ700s will be sold or leased to SkyWest Airlines, which also operates regional flights for United.

​​​​​​​Simple Flying reported earlier this month that the regional carrier would begin operating 11 CRJ550s for United by the end of the year
. The aircraft are modified CRJ700s with more premium features.

“To enhance the business”

Although Mesa is looking forward to a more profitable 2025, the carrier did post a Q3 net loss of nearly $20 million.

SkyWest Airlines United Express Embraer E175

Photo: sockagphoto | Shutterstock

According to Ornstein, the airline is not ready to disclose any financial expectations for next year, but anticipates a single-aircraft fleet will provide operational benefits.

“While we are not yet providing a forecast for fiscal year 2025, our focus continues to be on increasing utilization and maintaining overall operational performance. As we transition into flying all E-175s, we will look to drive additional efficiencies from operating a single fleet type. We will also continue to consider longer-term financial and strategic opportunities to enhance the business.”

Read Next

It Happened Twice: United Express Embraer E175 Lost Power Mid-Flight & Suffered “Navigational Issues”

The Federal Aviation Administration is investigating the two incidents.

Leave a Reply

Your email address will not be published. Required fields are marked *