A new deal between Mesa Air and aerospace services company AAR allows the regional to terminate its parts and maintenance contracts without penalty should it dispose of either its Bombardier CRJ200 or Embraer ERJ-145 fleets, a possibility AAR said it was warned about during its fiscal first quarter, which ended Aug. 31.

Yesterday, AviationWeek exclusively reported that Mesa will no longer operate CRJ200s or Bombardier Dash 8-200 turboprops - a total of 36 airframes - for United starting in May of next year, and that Mesa will be unable to meet its capital requirements if it cannot place these aircraft into another revenue-guarantee contract.

The regional is also battling to retain its contract with Delta, and is currently embroiled in legal action to stop the Atlanta-based carrier from ending Mesa's ERJ-145 operation. Mesa's 50-seat jets, which it also operates for US Airways (10 CRJ200s) and its own Hawaiian operation (five CRJ200s), account for 84 of the 178 aircraft in the company's fleet.

AviationWeek now also has discovered that Mesa, in a note to employees detailing the loss of the two United contracts, said it had stopped ground training while it evaluates its fleet plan and staffing requirements.

Neither AAR nor Mesa responded to calls about the new agreement, which was revealed late Nov. 4, or about the carrier's future operations.

The new arrangement with AAR does relieve Mesa of $6.1 million in long-term debt due to mature in 2023, although this deal cost the operator 15 million shares and an unspecified amount of cash. However, it still leaves the Phoenix-based operator with $15.6 million to pay from that 2023 senior convertible note and it dilutes it outstanding stock further to 175.2 million shares.

Recent trading of Mesa's stock has valued the company's market capitalization at roughly $25 million.

AAR in its own release also noted that it does not expect to increase its holding in Mesa Air, and may even sell down its current position. But this is to expected, especially as the company in a late September filing of its fiscal first quarter results noted that "[w]e have been informed by Mesa that they are contemplating significantly reducing or eliminating entirely, their fleet of ERJ-145 and CRJ200 aircraft."

ERJ-145 credit: Mesa