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Mesa Air Group's Profitable Deals

Author: Dennis Reynolds

Mesa Airlines - A Peek Into Its Clever Business Practices

Mesa Airlines’ story is one of hardships and challenges, which really isn't too uncommon when it comes to airlines. There are others that have encountered similar hardships. Some have endured over the years and many others have gone under. Mesa gives us a perfect example of using leverage though, which sets them aside from other companies. All that this refers to is the willingness of the company to create partnerships with other companies in the industry. This method of business allows them to ride out the economic downturn if it occurs. Below are some very interesting facts about Mesa Airlines.

Mesa Airlines was born as a part of the company JB Aviation by Jane and Larry Risley in 1980. The airline changed its name to Mesa Air Shuttle, in 1982, and operated out of Albuquerque, New Mexico, for the next five years. Eventually they moved their primary hub to Phoenix Arizona and pursued code sharing partners. Most major and minor airlines still share code agreements and it's a very common practice within the airline industry. In '92 Mesa and America West Airlines came to an agreement to share codes.

Mesa Airlines started from the humblest beginnings when they had only one lone aircraft that served two cities. 10 years later and the company had increased its fleet to 38 planes, and had started taking passengers to 63 destinations all over the USA. They went from a corporation that was private to one that was public, and they started trading on the NASDAQ stock exchange. The end of the 1980s saw a code share agreement and partnership with Midwest Express Airlines. Mesa could now offer services to passengers flying out of Milwaukee, Wisconsin. United Airlines and Mesa went into partnership on code sharing, which saw the arrival of United Express chartering flights out of Denver.

Mesa formed a partnership with a major airline in 2003. The airline in question was the well known United Airlines. This specific deal enabled Mesa to start up operations from a number of new airports, one of them being Denver. And so, from this new code share agreement, a brand new sub-brand was born: United Express Airlines. At this moment, United Express are solely using Bombardier aircraft for their services. Dash 8 aircraft were phased out from operations in 2009, which was just a choice Mesa wanted to make. Mesa Airlines is in some ways a typical story of an idea for an airline that starts from very humble beginnings. As you most likely know, building an airline and taking it to new heights requires plenty of time. This industry is especially reactive to business cycles, also, profit margins are often not as wide as any business would prefer. But the pioneers who do this accept these conditions before they start. What Mesa Airlines has done in its past is a wonderful example of how businesses should respond to economic problems to ensure both future growth and profitability.
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