Mesa Air Group, US Airways agree in principle to extend aircraft deal

By Caroline Salls

Pittsburgh, Oct. 19 - Mesa Air Group, Inc. and US Airways Group, Inc. have signed a non-binding term sheet outlining an agreement in principle for a 39-month extension from June 30, 2012 for the operation of 38 aircraft under the companies' codeshare and revenue sharing agreement, according to a US Airways news release.

US Airways said the term sheet also includes a reduction in the rates paid by US Airways to Mesa to operate the aircraft.

The transaction is subject to the negotiation and execution of definitive documents, approval by the US Airways and Mesa boards of directors, US Airways' approval of Mesa's plan of reorganization and approval by the U.S. Bankruptcy Court for the Southern District of New York.

Mesa Air, a Phoenix-based provider of passenger and airfreight services, filed for bankruptcy on Jan. 5, 2010. The Chapter 11 case number is 10-10018.

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