Mesa Air Group Signs Five-Year Cargo Contract with DHL Express, Will Add Boeing 737-400F Aircraft to Fleet
On July 13, 2020, Mesa Air Group (NASDAQ: MESA) announced the addition of two Boeing 737-400F aircraft to its fleet, commencing a five-year cargo service contract with DHL Express. This operation will utilize the Cincinnati/Northern Kentucky International Airport as a hub, with services set to start in October 2020. Mesa's entry into the cargo market aligns with its existing business model and is expected to offer new opportunities for employees, particularly pilots, by allowing them to earn a 737 type rating.
- Entering the cargo market enhances business diversification.
- New five-year contract with DHL Express increases revenue potential.
- Opportunity for pilots to earn a 737 type rating and gain higher pay.
- None.
- Adding two Boeing 737-400F to fleet
- Five-year contract with service scheduled to start October 2020
- Opening a new crew and maintenance base in Cincinnati
PHOENIX, July 13, 2020 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today announced plans to begin providing air cargo service for DHL Express with Boeing 737-400F cargo aircraft.
Under the agreement, Mesa will operate two cargo aircraft from DHL Express Americas global hub at Cincinnati/Northern Kentucky International Airport for a five-year term. The company will lease the aircraft from DHL with the first scheduled to be in service this October.
“We are very excited to enter the cargo market and diversify our business. Flying under contract on behalf of DHL is essentially the same business model Mesa has operated under for over 20 years,” said Jonathan Ornstein, Chairman and Chief Executive Officer. “Cargo transport plays a critical role in the health of communities and economies around the world. Mesa is well-suited for this new mission, and this is just the beginning of what we believe will be a long and productive relationship with DHL.”
“This new cargo operation opens new doors for Mesa,” said Brad Rich, Executive Vice President and Chief Operating Officer. “We are proud to offer new opportunities to our employees as we enter the cargo industry. In particular, Mesa pilots will now have the ability to earn a 737 type rating and receive the highest pay in the regional industry, all without leaving the company.”
“I’d like to thank all the people at Mesa, their counterparts at DHL and the FAA, who worked hard to bring this program to fruition,” said Captain Mike Ferverda, Senior Vice President of Regulatory Affairs, who is leading Mesa’s 737 certification process. “While much of the industry is challenged given the present COVID environment, we are pleased to expand our growth opportunities with this project.”
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 and cargo service to 66 cities in 29 states, the District of Columbia and Mexico. As of June 30th, 2020, Mesa operated a fleet of 145 aircraft with approximately 175 daily departures and 3,400 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 DHL
DHL – The logistics company for the world.
DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.
DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 63 billion euros in 2019. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements are based on Mesa’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond Mesa’s control. Any forward-looking statement in this release speaks only as of the date of this release. Mesa undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Investor Relations
Brian Gillman
Investor.Relations@mesa-air.com
Media
Jack Hellie
Media@mesa-air.com
FAQ
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