Source Pravda.Ru

Mesa Air Group worried about agreement breakup


Mesa Air Group, Inc. (NASDAQ: MESA), a commercial aviation holding company, can fall victim to cash crunch if Delta Air Lines Inc puts into action its plan to terminate a service agreement with the former.

The severance of relations will cost Mesa about $960 million in lost sales and $250 - $300 million in leasing costs, labor and other expenses.

Mesa reported that it had not enough finance available to clear off the debt that may lead to serious defaults and make the company seek bankruptcy protection/

In attempt to stop Delta’s plans Mesa filed a lawsuit that is scheduled to begin May 27.