Mesa Air Group, Inc (NASDAQ:MESA) Q4 2019 Earnings Conference Call - Preliminary Transcript
Dec 11, 2019 • 04:30 pm ET
Welcome and thank you for standing by. At this time, all participants are in listen-only mode. After the presentation we will conduct a question-and-answer session.
This call is being recorded, if you have any objections you may disconnect at this time.
Now I will turn the meeting over to your host, Jonathan Ornstein, you may begin.
Thank you, operator. Thank you everyone for joining us on the call today after hours, we greatly appreciate your interest. As the operator indicated, this is Jonathan Ornstein, I'm the Chairman and Chief Executive Officer of Mesa Airlines. On the call with me today will be Mike Lotz, our President and Chief Financial Officer, Brian Gillman our executive VP and General Counsel, and Darren Zapfe, our Vice President of Finance.Unfortunately, Brad Rich, our Chief Operating Officer is unable to join us, as he had to be on a flight to attend his daughters college graduation.
Okay, with that I'd like to ask Brian to open up with our forward-looking statements.
Thanks, Jonathan. Before the presentation and the comments begin Mesa would like to remind you that some of the statements in response to your questions in this conference call may include forward-looking statements. As such, they are subject to future events and uncertainties that could also affect our results to differ materially from those statements.
Also, please note the company undertakes no obligation to update or revise these forward-looking statements. Any forward-looking statements should be considered in conjunction with the cautionary statements in our press release and the risk factors included in our filings with the SEC, which Mesa encourages you to read. In addition, please refer to our press release in the Investors
Section of Mesa's website to find additional disclosure and reconciliations of non-GAAP financial measures that will be used on today's call.
Okay. Thank you, Brian. Well, I think it's important that we start and giving you United update. We certainly are pleased to have our new capacity purchase through input into play. We know it took a lot longer than any of us anticipated. We would like to thank United, it was a complicated transaction. But we believe it was well worth the way.
I am delighted not have to tell you it's going to be in two more weeks. We have 20 new Embraer 175 aircraft for a 12-year term. These aircraft will be owned by Mesa. In addition, we extended the term of 42 United owned 175. We believe the contract will give us improved profitability and liability on the new Embraer 175./
In addition, we agreed to lease our CRJ700s for a period of seven years to another operator. We believe this is significantly lower risk an equal or potentially higher margins on leases versus actually operating the CRJ700s in the CRJ550 configuration. Mesa will be the largest operator of Embraer 175 for United at 80 aircraft. We greatly appreciate their confidence in us.
We will be a single fleet type for our United operations