Mesa Air Group Eyes International Growth
Mesa Air Group (MESA) has announced a conditional agreement with Gramercy Associates Ltd. to establish a joint venture in Europe. This partnership aims to obtain a new Air Operator’s Certificate (AOC) to operate CRJ-900 aircraft, focusing on capacity purchase agreements in passenger or cargo services. Mesa will hold a 49% stake post-certification, with operations expected to commence by the end of 2021. The collaboration seeks to leverage successful CPA and ACMI models from the US in the European market, marking a significant step in Mesa's international expansion strategy.
- Strategic partnership with Gramercy Associates to expand into the European market.
- Potential to apply successful US business models (CPA and ACMI) in Europe.
- Mesa Air Group to hold 49% ownership in the new venture, indicating a significant investment.
- Dependence on obtaining the Air Operator's Certificate for venture initiation.
- Potential uncertainties related to the COVID-19 pandemic affecting operations.
PHOENIX, March 02, 2021 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today announced it has entered into a conditional agreement with Gramercy Associates Ltd. based in London, England to develop a European based joint venture. The joint venture will apply for a new Air Operator’s Certificate (AOC) in the European Union using CRJ-900 aircraft with the goal of introducing a Capacity Purchase Agreement or ACMI (Aircraft, Crew, Maintenance, and Insurance) in passenger or cargo services in Europe. Gramercy Associates is headed by Tony Davis, former CEO of Tiger Airways and bmibaby.
Under the agreement, Mesa will own
“We are very excited at the potential to expand our regional business overseas. As Mesa continues to diversify, we are looking forward to working with Gramercy on this new European venture,” said Jonathan Ornstein, Chairman and Chief Executive Officer.
“We are looking forward to teaming up with Mesa to help bring the CPA and ACMI models that have been so successful in the US to Europe,” said Tony Davis, Managing Director of Gramercy.
About Mesa Air Group, Inc.
Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 114 cities in 39 states, the District of Columbia, the Bahamas, Canada, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of January 31st, 2021, Mesa operated a fleet of 160 aircraft with approximately 393 daily departures and 3,700 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc., United Airlines, Inc., and DHL.
About Gramercy Associates Ltd.
Headquartered in the UK, Gramercy Associates Ltd. is an aviation consultancy and advisory business that has worked with airlines and aviation related businesses across the world. The firm is headed by Tony Davis, the former CEO of Tiger Airways and bmibaby and former COO of Irelandia Aviation Ltd.
Forward-Looking Statements
Certain statements contained in this press release that are not historical facts contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to the “safe harbor” created by those sections. Forward-looking statements can be identified by the use of words such as “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximate” or “plan,” or the negative of these words and phrases or similar words or phrases. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. For more information on risk factors for Mesa Air Group, Inc.’s business, please refer to the periodic reports the Company files with the Securities and Exchange Commission from time to time. Many of the risks identified in the periodic reports have been and will continue to be heightened as a result of the ongoing and numerous adverse effects arising from the COVID-19 pandemic. These forward-looking statements herein speak only as of the date of this press release and should not be relied upon as predictions of future events. Mesa Air Group, Inc. expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in Mesa Air Group, Inc.’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except as required by law.
Investor Relations
Susan Donofrio
Susan.Donofrio@fticonsulting.com
Media
Megan Bilbao
Media@mesa-air.com
FAQ
What is the joint venture announced by Mesa Air Group and Gramercy Associates?
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What percentage of the new venture will Mesa Air Group own?
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