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POSTED: Tuesday, August 11, 2009

Mesa suffers $2.7M quarterly net loss

Mesa Air Group Inc., parent of interisland carrier go!, posted a net loss of $2.7 million in the company's third quarter, an improvement from the $3.76 million loss of a year earlier.

The company said yesterday that it had income from continuing operations of $1.7 million, or 1 cent a share on a diluted basis, on operating revenues of $232.6 million. That compares with $1.8 million, or 7 cents a diluted share, on operating revenues of $354 million for the same period last year. The Phoenix-based company said that go!'s operating loss was $3.5 million for the period ending June 30, versus a loss of $7.4 million a year earlier.

“;Passenger revenue for go! decreased $7.5 million as a result of a 29 percent decrease in passengers and 28 percent decrease in average fare,”; the company said of the most recent period.

Mesa once again raised the possibility that it might have to file for bankruptcy, citing ongoing litigation with Delta Air Lines Inc. and its need to raise more capital and to restructure lease agreements.

“;Our financial condition could require that we seek additional protection under applicable reorganization laws in order to avoid or delay actions by its creditors and lessors,”; the company said.

Mesa first mentioned bankruptcy as a possibility in May 2008 because of a fight with Delta over a canceled service contract.

 

Southwest bids for Frontier

Southwest Airlines bid $170 million yesterday to take Frontier Airlines out of bankruptcy protection, well above the $108.8 million offered by Republic Airways Holdings Inc.

Asked whether Republic will bid at the bankruptcy court auction planned for Thursday, spokesman Carlo Bertolini said, “;I think we'll be present there. What our next step is, I don't have any detail on that.”;

Republic is the majority owner of interisland carrier Mokulele Airlines.

 

June small business bankruptcies up

Small business bankruptcy filings nationwide were up 81 percent in June from a year ago, according to an Equifax Data study.

Filings rose to 10,339 in June, up from 5,712 a year ago, the study said.

Hawaii, however, was among the 15 markets with the fewest small business bankruptcies.

“;The data shows that the economic pain is continuing for small businesses across the country,”; said Dr. Reza Barazesh, of Equifax. “;While it may not be quite as intense in some areas as what we saw earlier this year, we're still seeing hefty increases in the number of bankruptcies in a lot of major metro areas.”;

The study found that Western states were the hardest hit, dominated by California, which had 10 metro areas in the top 15 list for small business bankruptcy filings.

 

Minority business certification info

Hawaii business owners can learn about getting certified as Minority-Owned Business Enterprises at one of two upcoming events. Certification opens doors for businesses to obtain government and other types of contracts.

Northern California Minority Supplier Development Council President Scott Vowels will discuss the value and process of certification, maximizing the organization's database, and corporate contracting.

The two sessions at the Hawaii Women's Business Center, Aug. 24 from 9 to 11 a.m. or 5:30 to 7:30 p.m., will be identical except that Lt. Gov. “;Duke”; Aiona will speak at the morning session.

 

Central pacific in shares push

Central Pacific Bank's parent company has scheduled a special meeting of shareholders to seek approval to increase the authorized number of shares of common stock.

The meeting is scheduled for Oct. 22 in Room 1110 of the Central Pacific Plaza Building at 220 S. King St. Central Pacific Financial Corp. is trying to raise capital by offering more common stock.

 

ON THE MOVE

; » Hawaiian Homestead Technology has announced the appointment of Kealii Watson as the firm's new team leader. He previously was an AutoCAD technician and Web designer for Towill, Shigeoka and Associates.

» The Travel and Tourism Research Association has awarded Pauline J. Sheldon its Lifetime Achievement Award. She is a professor at University of Hawaii-Manoa School of Travel Industry Management.

» First Risk Management Services Inc., a subsidiary of First Insurance Co. of Hawaii, has hired Emi Swaim as captive insurance manager. She previously was vice president for Marsh Management Services..