Mesa Airlines said late Saturday it is finalizing an agreement to operate regional flights for United Airlines after an announcement it will wind down flights for American Airlines early next year.
In a memo sent to employees and provided to Reuters by the company, Mesa Air Group Chief Executive Jonathan Ornstein said the Arizona-based carrier is "finalizing a new agreement with United which would transition all CRJ900s currently flying for American Eagle to United Express.
Mesa said the switch was prompted by a regional pilot shortage and American's actions related to that. But, Ornstein added in the Mesa memo, "American chose not to fund the higher pilot rates for their non-affiliated carriers. At the same time, we were being penalized for not producing the required block hours under our pre-COVID contract with American. These two actions were costing us approximately $5 million in losses per month."
The latter cast the decision differently in its memo, saying Mesa "has experienced various financial and operational difficulties this year. As a result, we have concerns about Mesa's ability to be a reliable partner for American going forward."
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