Manufacturing Industry
Court rules in favour of Mesa in dispute with Delta
Airline Industry Information, May 30, 2008
AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD
Mesa Air Group Inc (Nasdaq: MESA) has won a preliminary injunction to stop Delta Air Lines (NYSE:DAL) terminating Freedom Airlines' ERJ-145 contract.
Delta gave notice at the end of March that it intended to terminate the Delta Connection agreement with Mesa and its subsidiary Freedom Airlines. It cited the alleged failure to maintain a specified completion rate on the carrier's ERJ-145 Delta Connection flights during three months of the six-month period from September 2007 to February 2008.
Mesa Air Group's chairman and CEO, Jonathan Ornstein, said after the court ruling that he was hopeful the matter could be fully resolved soon.
Freedom Airlines currently operates 34 ERJ-145 aircraft and seven CRJ-900 aircraft for Delta Connection.
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