Mesa Air Group Files Chapter 11

Mesa Air Group on Tuesday filed for Chapter 11 bankruptcy protection. Mesa will restructure its business mostly because of financial obligations for leases on airplanes it no longer needs.

The Chapter 11 filing also will give Mesa the “opportunity to reach a more timely conclusion in the litigation with Delta Air Lines, in which Mesa is currently seeking damages in excess of $70 million,” said CEO Jonathan Ornstein.

Mesa operates a fleet of 130 aircraft. The regional operator says reorganization will allow it to get rid of excess planes and compete better.

The Phoenix-based company operates regional flights for Delta and US Airways. In November, United Airlines chose not to extend a deal under which Mesa ran 26 regional jets for the carrier.

The bankruptcy is not expected to interrupt Mesa’s daily flight schedules. The filing does not include Mesa’s Go-Mokulele joint venture in Hawaii.