Mesa Air Group, Inc. F3Q08 (Qtr End 06/30/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-08-19 14:10:21.0

Tags: Mesa Air Group Inc.

Question-and-Answer Session

Operator

(Operator Instruction) Your first question comes from Michael Lindenberg - Merrill Lynch.

Michael Lindenberg - Merrill Lynch

When you talked about the agreement that you reached with Delta on compensation for the 145, when we think about that and how we model. Does that assume, because you aren’t running the operation and there is obviously cost associated with it, but a lot of variable cost is out, based on the rate that they are paying you, does that result in a breakeven number for the company, and is it a loss. How should we think about that?

Jonathan Ornstein

I think you can look at that as no worse than a breakeven.

Michael Lindenberg - Merrill Lynch

With those planes, maybe they grounded maybe not, may be you are able to use them in charter or backfill for Delta, because they are out of the schedule until October. Do you run into any issues with pilot time and making sure that the pilots are on those planes remain current?

Jonathan Ornstein

We have been doing some ad hock work for Delta and so, no we don’t see it as an issue and there is 12 aircraft going back into service in September. I am not sure, I may have misspoke but they all go back in October, but we start in September. So, there is no time out, there is no issues we’ll be find.

Operator

Your next question comes from Bob McAdoo - Avondale Partners

Robert McAdoo - Avondale Partners

What the line it says loss from discontinued operations, the $5.5 million loss for Air Midwest. Fuel costs are involved, any fuel cost increases or any fuel that relates to Air Midwest is in that because that’s that is the net of that expanding expense there?

Jonathan Ornstein

Yes, that’s correct.

Robert McAdoo - Avondale Partners

Could you tell us how much on the go! side, what your fuel went up, into your fuel bill win up on the go! side year-over-year? Is there a way to get to that?

Jonathan Ornstein

Its $3.8 million.

Robert McAdoo - Avondale Partners

That’s the year-over-year increase in fuel?

Jonathan Ornstein

That’s just on the rate Bob. That’s not volume, that’s just rate, and since then and Keith correct if I am wrong, we’ve seen approximately a $1.2 million decline based on today’s prices versus last quarter, on a quarterly basis?

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here