Amid the upheaval of severing its contract with longtime operating partner American Airlines and finalising a new deal with United Airlines, Mesa Air Group reported a $115.6 million loss during its fiscal Q4. For comparison, the parent company of Mesa Airlines lost $7.5m during its fiscal fourth quarter - which ends on 30 September - in 2021. For the full fiscal year, Mesa reported a $183m loss, compared to a profit of $16.6m in fiscal 2021. Mesa finalised a five-year capacity purchase agreement with United on 27 December that covers up to 38 Bombardier CRJ900s depending on how many Embraer E175s the airline operates, CE Jonathan Orstein said during the company’s earnings call on 29 December. “This is an important momentum reversal for the regional airline industry as we work to restore service to neglected smaller and rural markets – three quarters of which have seen service reductions in the past three years – by adding over 100 daily regional jet flights to the United network,” Ornstein says. Mesa will operate its current schedule with American through 28 February 2023, then reduce flights by half until it stops flying for American on 3 April. Mesa plans to begin transitioning aircraft to United in March. Mesa’s total revenue during the three months ending 30 September was $126m, compared with $131m during the same quarter of 2021, the company says. Its unprofitable Q4 was due in part to losing $5m monthly while operating for American, which penalizes Mesa for not flying enough block hours, Ornstein adds. The company also felt pressure from higher pilot pay. Story has more.<br/>
star
Portuguese Infrastructure Minister Pedro Nuno Santos has stepped down, his office said on Thursday, following a public backlash over a hefty severance pay a secretary of state received from state-owned airline TAP, which fell under his remit. Coming amid a cost-of-living crisis, the case of Alexandra Reis, the treasury secretary of state, who quit on Wednesday, has embarrassed the Socialist government of premier Antonio Costa since the E500,000 compensation was reported. Opposition parties have sharply criticised the government's lax hiring practices and demanded that Reis be sacked and return the money paid by TAP over ceasing her functions as a board member on mutual agreement last February. Reis, who only took over the Treasury department on Dec. 2, argued she had demanded what she was legally entitled to, as the government and the airline later confirmed. "The entire process was monitored by TAP's legal services and by an external law firm ... with no information being sent on the existence of legal doubts surrounding the agreement being signed," the government said. Portuguese newspaper Jornal de Negocios said the Infrastructure Ministry knew about Reis' exit from TAP and the amount she was going to receive. TAP, in which the Portuguese state has a 72.5% controlling stake, was saved by a E3.2b rescue plan approved by Brussels. It has reduced its fleet, eliminated thousands of jobs and cut wages in an attempt to return to profit in the next few years.<br/>
Asiana Airlines has appointed Won Yoo-seok as its acting CE, following the resignation of Jeong Seong-kwon. Won’s appointment follows a meeting of the airline’s board on 28 December, says the carrier. Won previously helmed Asiana’s cargo division. The company adds that he has worked as a human resource team leader, Los Angeles cargo branch manager, and in other roles. “We will make every effort to enhance Asiana Airlines’ competitiveness in the rapidly changing external environment,” says Won. The carrier adds that his predecessor, Jeong, stepped down for “personal reasons.” Asiana is in the process of being acquired by Korean Air. Korean Air is steadily racking up regulatory approvals for the deal, but still awaits approval from the European Union, USA, and Japan, as well as final approval from the United Kingdom.<br/>