Arizona’s Mesa Airlines looks at incremental cargo growth

Mesa Airlines (YV, Phoenix Sky Harbor) sees potential for further growth in the cargo sector and is currently evaluating adding both B737NG and turboprop freighters to its fleet of two B737-400(F)s, Chief Executive Jonathan Ornstein said during the carrier’s quarterly earnings call. “We think the B737-400(F) continues to have a long-term attraction to the different cargo operations because of a very good niche. We are looking at other aircraft types as well and I think they will probably move to B737-800s at some point. We are also looking at smaller aircraft,” he said. The airline, traditionally focussed on regional operations on behalf of mainline airlines in the United States, expanded into the cargo business this year, adding its two B737s. Cargo operations began in October with both aircraft flown under an agreement with DHL Express and based out of Cincinnati Int’l. Ornstein acknowledged that the carrier’s cargo business is currently much smaller than its regional passenger operations. He also admitted that it will grow at a much slower rate, but nonetheless said the prospects were good. “With our partners at American Airlines, United Airlines, and other mainline carriers, we will do deals 10, 20 aircraft at a time, whereas on the cargo side, the deals have a tendency just to be a lot more incremental. The cargo business will build, but potentially not at the same rate as we could potentially move the regional business. But that being said, I do think that the cargo business does provide us with some pretty significant opportunity,” he added. Without providing a specific timeline, Ornstein said that Mesa Airlines was hoping to add a cargo aircraft “every other month” to reach 10-12 freighters in two years’ time. The airline plans to take part in outsourcing RFPs issued by logistics firms going forward. According to the ch-aviation fleets advanced module, besides the two freighters, Mesa Airlines also operates 162 regional jets.