The MagAFA Communications Committee is dedicated to keeping our flight attendants updated and informed.  We do so using traditional methods: bulletin boards in base, flyers, newsletters, posters; as well as digital communication: this website, email, social networking (Facebook, Twitter, etc).

The current MEC Communications Chairperson is Ryan Makings.  Ryan is a flight attendant based in Chicago, and has been with Mesa since June of 2007.  

If you are interested in serving on the Communications Committee (either at the MEC level or just within your base) please see the link to the right -- Volunteer.

If you have an item to disseminate to the flight attendant group, please use the "Submit an Article" link to the right.

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Good morning.

To all of you who have not yet heard, Mesa filed Chapter 11 bankruptcy yesterday. We know that you will have many questions and concerns about how this will impact our lives. Please read the company email that will explain many of those questions you may have. AFA is in the process of retaining a bankruptcy attorney to represent our interests. We know that many of you will have further questions, if so, please call or email (preferably email) any of your elected leaders. We will send out more information as it becomes available.

Also as a reminder AFA EAP is always available to help please contact Gina Wilson, her number is 773-450-7441

In Solidarity, MSA/FRE MEC

On Tuesday, 5 January 2010, Mesa Air Group announced its intentions to seek Chapter 11 Bankruptcy Protection.  We realize this is a time of stress and confusion for you, and have created the following document to answer some of the more frequently asked questions, as well as provide additional information on the current proceedings – and on our plan going forward.

What is Chapter 11?

Chapter 11 is a form of bankruptcy which allows a company to reorganize and restructure its current debt, and form a repayment plan.  Under a Chapter 11 reorganization, company management makes the day-to-day decisions of the business, with approval and supervision of a bankruptcy judge and a creditor’s committee.  (Mesa filed for bankruptcy in the Southern District of New York, with the case being overseen by Judge Martin Glenn)  The creditors’ committee is comprised of approximately 4-12 parties selected by the US Trustee (the government agency responsible for overseeing the administration of bankruptcy cases).  The creditors’ committee is comprised of groups that have an interest in Mesa Air Group – our suppliers, any group Mesa may owe money to, and occasionally, employee groups.  In order to exit bankruptcy several stages have to be passed – and these will take anywhere between six months and several years.  First, as all decisions have to be approved by the court, Mesa has to put forth motions to continue running as a business (paying employees, maintaining our code share agreements, etc).  After these initial proceedings, Mesa has to formulate a plan – which must be approved both by Judge Glenn and the creditors’ committee – to settle outstanding debt.  This usually involves an agreement by the debtor (Mesa) to repay a percentage of the outstanding debt (commonly around 10%), after which the remaining debt is considered “forgiven”.  From the time Mesa filed for bankruptcy protection all currently outstanding debts were “frozen” – they became part of the bankruptcy case.  Everything going forth from this point is now subject to the approval of the court – and therefore, if approved, will be separate from the repayment plan.

How does it affect the flight attendant group?

At the moment, the bankruptcy will not affect the flight attendant group.  Thus far, Mesa has appeared willing to maintain the current wage and benefit structure (and has not opposed the Tentative Agreement which will be premiered beginning Jan 18^th) and due to our typically high rate of attrition, Mesa is not anticipating a furlough in the flight attendant group.  This however, is all very preliminary and is subject to change as the bankruptcy progresses.  Additionally, there is a VERY slim chance that Mesa will be unable to negotiate an agreement with the creditors’ committee that allows us to emerge bankruptcy with enough liquidity to continue operations.  In this case, the Chapter 11 bankruptcy would be converted to a Chapter 7 – which is a liquidation of the airline.  Again, we do not anticipate that this will be an issue as Mesa’s management has been very vocal regarding their belief that they will have the liquidity to see them through the entire proceedings.

As you may recall from Jonathon Ornstein’s letter to the employee group, you will be receiving a letter from the court advising you to submit all claims by a certain date.  As Mesa has continued to pay vacation, wages, and other benefits the employee group does not have a claim again Mesa Airlines at this time – there is no action required for the flight attendants by that letter.

The Tentative Agreement that the negotiating committee secured at the end of last year will be displayed and opened for discussion on the Roadshows beginning Jan 18^th – please continue to watch for communication regard the dates for your domicile.  Nothing has changed in this process – the TA will be put to full membership ratification at the conclusion of the Roadshow.

Current Progress in Court

“First Day Matters” were heard on January 5^th.  During these proceedings Mesa cited the following as its primary reasons for filing bankruptcy:

• Of our 178 aircraft, 52 are currently unused.  (That number will increase as aircraft are rotated out with the end of the CRJ-200 and Dash-8 UAX agreement).
• Many of the leases on our aircraft are long term leases which extend past the code share agreements for which the aircraft were intended.  What this essentially means is that, if our partners were to choose not to extend our agreements in the coming years and months, we’d be back in the same situation we are now – with too many unused aircraft.
• Additionally, there have been several large debt repayments which have come due in the past 60 days.

Mesa filed (and was granted) motions to: pay all pre-petition fees and taxes, pay its employee wages and health benefits, maintain its insurance policies and worker’s comp claims, honor its existing fuel supply agreements, and preserve its current cash management system.   Mesa will also be filing a motion in the weeks to come to allow it to continue its current code share agreements with Delta, United, and US Airways.  We fully expect these motions to be granted.

The company also offered an initial plan for emergence which included the return of 77 aircraft to our creditors (these include the 52 already unused plus the additional 200/-8s that will be rotated out in the coming months) and the renegotiation of aircraft leases to align more appropriately with our current code-share agreements.

Next Steps

MagAFA is working in conjunction with AFA International and its attorneys to ensure that the flight attendant group is protected.  Initially, we will be working to be granted a seat on the creditors’ committee.  This is an important step as it will allow the flight attendant group to have a voice in the decisions of the company.  As the largest employee group, we feel good regarding our chances to be appointed to the committee – however it should be stressed that this is entirely at the discretion of the US Trustee and is not guaranteed.

Additionally, MagAFA is making available its EAP Personnel for all flight attendants.  EAP (Employee Assistance Program) volunteers are always available to help with any personal or professional concerns you may have.  They have the resources to help you cope with any emotional stress – or can offer referrals to other professionals, if necessary.

We realize that this is a difficult and stressful time for all employees – this stress is only exasperated by false information and rumors.  Before spreading information PLEASE talk with your union representatives – and for further information please see our page on the restructuring at www.mesaafa.com/chapter11

MagAFA is dedicated to the protection and well being of our flight attendants.  Please know that we stand behind you, and encourage your questions, feedback, and concerns.

In Solidarity,

Mesa Air Group AFA Master Executive Council

Dear Mesa Flight Attendant,

Your elected representatives and your Negotiating Committee have reached a tentative agreement with the management of Mesa Air Group and have submitted it to you for a vote. Please take advantage of road shows as they are scheduled so that you may have all of your questions answered before you cast your vote. Subsequent to reaching the tentative agreement Mesa Air Group filed Chapter 11 bankruptcy. The filing does not affect the tentative agreement and the ratification process will move ahead as scheduled. And although there is a provision in the bankruptcy process that can be used to force negotiated concessions within all contracts, including labor contracts, every indication is that the tentative agreement reached with management in December, if ratified, fits within their restructuring plans. If you choose not to ratify the tentative agreement, your AFA representatives will of course return to negotiations with Mesa Air Group to continue efforts to reach another tentative agreement for your consideration. Those negotiations however would likely be under the guidance of the bankruptcy judge. AFA has over the past few years had a lot of experience with airline bankruptcy. This is certainly not experience we would have sought but it is experience we are well prepared to use to represent your best interests throughout this process. You will likely not immediately notice any change in your day to day flying assignments but you will certainly see Mesa Air Group mentioned in the press on a more frequent basis as the business press follows the company?s progress through the bankruptcy court. It is a process that could take a few to several months to reach a successful conclusion. It is very important during what can be a very unsettling time that you do not fall prey to rumors. Your elected officers and committee chairs are available to you as a source for accurate information. They have already sent you a lot of information which I encourage you to print and carry with you on your trips to share with those who may not have access to email. And do share with them any additional questions, any rumors or any concerns you have over the next months. Your union, the Association of Flight Attendants-CWA is committed to support you and represent your interests through the bankruptcy process whether or not you choose to ratify this tentative agreement.

In Solidarity,

Patricia Friend International President Association of Flight Attendants-CWA