American Airlines said its final flight with Arizona-based Mesa Air will be on April 3.
Mesa's CEO Jonathan Ornstein told employees in a note: "We are excited to announce we have negotiated a wind down of our operations with American and are finalizing a new agreement with United which would transition all CRJ900s currently flying for American Eagle to United Express.
The heart of the problem stems from a shortage of pilots, which is most acute at regional carriers and has become more severe since travel demand snapped back after a pandemic travel slump. Mesa and other regional airlines have boosted wages to attract and retain pilots. American has also raised wages at its regional subsidiaries.travel website and a former airline manager.
American declined to fund higher pilot rates for other regional partners, Mesa's CEO told staff in the note, adding that it was penalized for not being able to meet pre-Covid contract obligations.American didn't comment on Ornstein's memo. As of Sept. 30, 2021, about 45% of Mesa's revenue came from American and 52% from United, according to the company's last annual filing, which was published a year ago. Mesa also flies for DHL.
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