Mesa Air: Restructuring, Vendor Information

As an important partner in our business, I wanted you to hear from me personally about an important action the Company has recently undertaken.

As you may know, on January 5, 2010, the Company announced that it had commenced restructuring activities and to facilitate the initiative has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. First and foremost, Mesa Air Group is not going out of business. In fact, we took this action to preserve the business and we will continue to operate the business uninterrupted. Chapter 11 means reorganization, not liquidation. It is a tool to enable us to restructure our debt and strengthen our business.

Second and very importantly, the Company has sufficient cash to continue funding its day-to-day operations. I, along with the rest of the Company's management team are committed to its long-term future.

The Bankruptcy Code provides priority status for post-petition goods and services. This means you can be assured that we can and will pay for the goods delivered and services rendered after January 5, 2010.

Unfortunately, federal law prohibits payment for goods and services received before the January 5, 2010 filing date except pursuant to a Plan of Reorganization that is approved by the Court. We want you to know that we are working toward a Plan of Reorganization as quickly and as prudently as possible. You will receive instructions on how to file a claim in the coming weeks. We sincerely regret any hardship this may cause.

If you are a vendor who provides goods or services under an executory contract with Mesa-such as a software license or maintenance agreement, airplane or real estate leases, development contracts, and/or intellectual property licenses-under the Bankruptcy Code the Company must determine which contracts they intend to "assume" or keep, or "reject" or exit from. Contracts the Company intends to assume must be "cured." This means that pre-petition amounts owed on these contracts will be paid in full upon the assumption of the contract. For those the Company rejects the process for filing of a claim for the pre-petition amount owed will be resolved as described above. In the coming weeks you will be receiving additional information regarding the treatment of contracts.

Understandably, you may be wondering how and why this happened. Over the past two years, we have worked closely with our lessors, creditors and other constituents to restructure our financial obligations. These efforts have led to the elimination of over $160 million of debt obligations, the return of a number of aircraft, and the restructuring of inventory management and engine overhaul agreements. We are nonetheless faced with an untenable financial situation resulting primarily from our continued lease obligations on aircraft excess to our current requirements. After careful consideration, the Company determined that a Chapter 11 filing provides the most effective and efficient means to restructure with minimal impact on the business and our customers. This process will allow us to eliminate excess aircraft to better match our needs and give us the flexibility to align our business to the changing regional airline marketplace, ensuring a leaner and more competitive company poised for future success.

In the weeks ahead, you can expect to receive various notices from the Bankruptcy Court alerting you to the filing, informing you of the meeting of creditors, as well as a notice of "Bar Date," which is the date by which all claims must be filed. Do not be alarmed by these notices, they are standard and must be sent to all parties that may have a monetary claim against the company. Moreover, receipt of these notices does not mean that a party does in fact have a claim.

We value our relationship with you and I want to thank you personally for your patience during our restructuring. We will do our best to keep you fully informed of our progress.

Regards,

Jonathan G. Ornstein
Chairman and Chief Executive
Mesa Air Group