NYTimes.com Article: United Expands Its Ties to Mesa

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United Expands Its Ties to Mesa

July 2, 2003
 By BLOOMBERG NEWS






United Airlines, the world's second-biggest carrier behind
American Airlines, has hired Mesa Air Group Inc. to provide
regional-jetliner flights under a 10-year agreement,
expanding a partnership between the companies.

Mesa, a regional airline based in Phoenix, will begin
flying 35 jets for United Express in August, adding to the
10 turboprop aircraft it has been operating for the United,
a unit of UAL Corporation. Mesa said it would fly 20 jets
with 70 seats, and 15 jets with 50 seats and may eventually
operate 25 more planes for United. A United spokesman, Jeff
McAndrews, declined to provide financial terms of the
arrangement.

UAL, which filed for bankruptcy protection in December, has
said it is seeking to lower commuter-carrier costs by $80
million annually by renegotiating contracts. The company,
which is based in Chicago, also said it is open to offers
from potential new partners.

United renewed its association with Mesa in February. The
new agreement will bring Mesa $250 million in annual
revenue when all 35 of the jets are deployed at existing
profit margins of about 8 percent, Mesa's chief executive,
Jon Ornstein, told analysts.

http://www.nytimes.com/2003/07/02/business/02UAL.html?ex=1058152614&ei=1&en=26c01028177e4b47


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