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The Honolulu Advertiser
Updated at 10:49 a.m., Thursday, February 14, 2008

Mesa to raise cash by selling spare airplane parts

Advertiser Staff

DALLAS Mesa Air Group Inc., the parent company of interisland carrier go!, is in talks with five potential customers for $100 million worth of spare parts it may sell to raise cash, according to a report from Bloomberg News Service.

The negotiations come as Mesa's unrestricted cash fell to $90.9 million and as a Standard & Poor's analyst said the company may face liquidity issues. Phoenix-based Mesa may realize as much as 50 cents on the dollar for the parts, Chief Executive Jonathan Ornstein said in a conference call with analysts today.

"Liquidity levels could become a concern if cash levels drop much further," Standard & Poor's analyst James Corridore said in a note to investors today. "We believe Mesa is likely to continue to lose money in Hawai'i, a small operation which has become a large drain on resources."