Mesa Airlines eyes Adria Airways stake
US regional carrier Mesa Airlines has been revealed as the mystery investor interested in acquiring a stake in Slovenia's Adria Airways. According to the "24ur" portal, the Americans have been screening Adria's business for almost a month. Mesa is expected to make a final decision on the potential acquisiton within a month or by the end of the summer, at the latest. In a statement, the Slovenian carrier said, "Thorough assessments and negotiations with potential investors are being carried out. At Adria, we are confident that a transaction will be successfully concluded". At a press conference last month, Adria noted it needed a strategic partner in order to maintain scheduled services but emphasised that its part-owner, 4K Invest, would stay on.
Mesa Airlines, a subsidiary of the Mesa Air Group, operates regional domestic flights on behalf of American Airlines and United Airlines under the American Eagle and United Express brands. It boasts a fleet of over 140 aircraft. Most of its planes are either Bombardier CRJ700 or CRJ900 jets, which also make up the bulk of Adria Airways' fleet. Mesa also operates a major Bombardier training facility in Phoenix. The Mesa Air Group has extensive experience in mergers and acquisitions, owning stakes in up to ten airlines at one point, prior to filing for Chapter 11 bankruptcy, from which it successfully emerged in 2011. All of its past acquisitions have been in the United States.
Adria Airways' CEO, Holger Kowarsch, suggested last month that larger European carriers will follow the example of their peers in the United States which utilise services of regional airlines on a significant number of routes. As a result, Mr Kowarsch hinted that Adria is likely to expand the scope of its ACMI business in the future. Regional carriers operating on behalf of larger companies are usually paid a fixed price for maintaining certain routes, with all the risk lying with the major airline. Furthermore, in some cases, major carriers will offer incentive payments to regional airlines for operating on-time flights without cancellations.
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