PHOENIX -- Mesa Air Group intends to add 20 new Embraer 175 regional jets to its United Express fleet. The aircraft will be owned and financed by Mesa, and covered under a 12-year capacity purchase agreement. They will be configured with 70 seats in a three-class layout. Deliveries are scheduled to begin in May 2020 and be completed by the end of that year.
Mesa and United Airlines are also extending their contract for 42 Embraer 175s for an additional five years. The aircraft, which are owned by United, are now contracted through the end of 2024, with rights to extend through 2027. An additional 18 United Express 175s, which are owned by Mesa, are contracted through 2028.
"We are pleased to increase the number of Embraer aircraft operating under our partnership with United to 80, making Mesa the largest E175 operator under the United Express banner," said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. "We are delighted that United has chosen to make us its fastest-growing and largest operator of its premier regional jet. We would like to thank all of our hard-working and dedicated people for making Mesa United's airline of choice for regional growth."
The transaction will result in Mesa’s United Express fleet consisting solely of Embraer 175s under long-term contracts and having an average age of 3.7 years. Mesa expects the shift to a single fleet type to improve utilization of crew and maintenance resources across its United Express system.
"We look forward to strengthening our partnership with United through this new long-term contract," said Brad Rich, Mesa Executive Vice President and Chief Operating Officer. "Mesa has been flying Embraer aircraft for nearly 30 years and we expect this transition to have a positive impact on our United Express operation."
In connection with the deal, Mesa's 20 Bombardier CRJ700 regional jets will be leased to another United Express carrier for a term of seven years.
Mesa Air Group is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 147 cities. Mesa operates a fleet of 145 aircraft with approximately 749 daily departures and 3,400 employees. It operates all of its flights as either American Eagle or United Express flights, pursuant to the terms of capacity purchase agreements with American Airlines and United Airlines.
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