02-14-2011, 07:23 AM
It's believed that as part of Mesa exiting bankruptcy, their "independent" operations such as go!, can not be subsidized by the non independent operation (cause of bankruptcy) on the mainland. That means that all income/expenses has to occur within the operating unit.
Prior to Mesa's bankruptcy, it made grandiose claims of keeping fares low because it would use profits from its legacy contracts to keep and advertise some fares below what it cost them to really fly that route. Since that appears to be a thing of the past, any inter-island low fare (below actual cost) can only occur if they have revenue above that amount (strictly from inter-island) to offset.
I suspect there will probably be a fare increase.
Prior to Mesa's bankruptcy, it made grandiose claims of keeping fares low because it would use profits from its legacy contracts to keep and advertise some fares below what it cost them to really fly that route. Since that appears to be a thing of the past, any inter-island low fare (below actual cost) can only occur if they have revenue above that amount (strictly from inter-island) to offset.
I suspect there will probably be a fare increase.