Mesa Air Group May Benefit from Continental Move
The announcement by Continental Airlines that it is pulling back 69 regional jets from ExpressJet Holdings Inc. may signal an opportunity for Mesa Air Group.
Houston-based Continental pulled back the planes after failing to win a cheaper contract from ExpressJet, also of Houston, which operates a total of 274 regional aircraft for Continental.
Phoenix-based Mesa Air Group Inc. is among three regional carriers that operate 50-seat Embraer regional jets “and could operate all or a portion of the 69 RJ´s,” said James Parker, an analyst for Raymond James.
News of the potential opportunity boosted Mesa´s stock, which finished last week up 46 cents, or nearly 5 percent, to $10.51 per share.
Mesa Air Group flies under the banners of US Airways Express/America West Express, United Express and Delta Connection under contracts with US Airways Group Inc.
The company operates 182 aircraft with more than 1,100 daily departures. The airline has also announced plans to operate a regional air carrier serving the Hawaiian islands.
