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MESA ANNOUNCES INTEREST IN ENGLISH START-UP

 FARMINGTON, N.M., Aug. 25 /PRNewswire/ -- Mesa Airlines Inc. (NASDAQ: MESA) today announced that it has signed a letter of intent with Community Express Airlines Ltd. to become a 24 percent owner of the start-up regional operation in England. The start-up operation, which plans to begin operations in late October 1993, will serve London's Gatwick airport from southern U.K. cities. The new operation will utilize surplus Shorts 360 equipment which were written off earlier this year.
 Mesa will own 24 percent of the new regional, which complies with foreign ownership requirements of the United Kingdom. The company will, however, receive 70 percent of the profits of the corporation in exchange for providing the two Shorts 360 aircraft. The aircraft were written down by Mesa's WestAir subsidiary in the second fiscal quarter of this year. Mesa will convert the aircraft to the U.K. configuration and sublease the aircraft to Community Express Airlines in exchange for a monthly lease payment that will cover maintenance, engine reserves, and other incidental expenses. Mesa will continue to make the primary lease payment on the Shorts 360s as its contribution.
 "We believe that Community Express Airlines is an outstanding opportunity for Mesa. We have little or no risk in the venture because we have already written down the aircraft that will be utilized by the new airline. In exchange we have a tremendous upside opportunity with what we believe will be a very profitable venture," stated Larry Risley, chief executive officer of Mesa. "The principals involved in Community Express Airlines are experienced in the airline industry in the United Kingdom and they have a sound financial advisor. We have reviewed their business plan, route structure, and fare structure, and we believe this new start-up operation has all the proper ingredients to be a success. This airline, much as our original Mesa Airlines operation in Albuquerque, New Mexico, fills a critical need at London Gatwick airport."
 Mesa Airlines is the largest independently owned regional carrier in the country, comprised of seven different airline operations serving 151 cities in 28 states.
 -0- 8/25/93
 /CONTACT: Gary Risley of Mesa Airlines, 505-327-0271/
 (MESA)


CO: Mesa Airlines Inc.; Community Express Airlines Ltd. ST: New Mexico IN: AIR SU:

BB -- DV005 -- 0406 08/25/93 14:06 EDT
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Publication:PR Newswire
Date:Aug 25, 1993
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