Mesa Says It Needs $960M Delta Deal To Stay Aloft

Law360, New York (May 23, 2008, 12:00 AM EDT) -- Mesa Air Group Inc. could go bankrupt if rival Delta Air Lines Inc. cancels its connection agreement to operate 34 jets, the carrier warned in a filing to federal regulators on Thursday.

The Phoenix-based airline said it might be forced to seek Chapter 11 protection if it lost its battle to block the proposed termination of the $960 million deal.

Mesa told the U.S. Securities and Exchange Commission on Thursday the agreement was worth about 20% of its total revenues last year, and its cancellation would...
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