810332--12/14/2006--MESA_AIR_GROUP_INC

related topics
{cost, operation, labor}
{competitive, industry, competition}
{operation, natural, condition}
{cost, regulation, environmental}
{stock, price, operating}
{provision, law, control}
{personnel, key, retain}
{financial, litigation, operation}
{operation, international, foreign}
{system, service, information}
Our code-share partners may expand their direct operation of regional jets thus limiting the expansion of our relationships with them. If we experience a lack of labor availability or strikes, it could result in a decrease of revenues due to the cancellation of flights. Increases in our labor costs, which constitute a substantial portion of our total operating costs, will cause our earnings to decrease. If new airline regulations are passed or are imposed upon our operations, we may incur increased operating costs and experience a decrease in earnings. lf additional security and safety measures regulations are adopted, we may incur increased operating costs and experience a decrease in earnings. If our operating costs increase as our aircraft fleet ages and we are unable to pass along such costs, our earnings will decrease. Our fleet expansion program has required a significant increase in our leverage. Reduced utilization levels of our aircraft under the revenue-guarantee agreements would adversely impact our revenues and earnings. If we incur problems with any of our third-party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services. We are at risk of loss and adverse publicity stemming from any accident involving any of our aircraft. If we become involved in any material litigation or any existing litigation is concluded in a manner adverse to us, our earnings may decline. Our business would be harmed if we lose the services of our key personnel. We may experience difficulty finding, training and retaining employees. We may be unable to profitably operate our Hawaiian airline, which could negatively impact our business and operations. Risks Related to Our Industry If competition in the airline industry increases, we may experience a decline in revenue. The airline industry is heavily regulated. The airline industry has been subject to a number of strikes which could affect our business. Risks Related to Our Common Stock Provisions in our charter documents might deter acquisition bids for us. Our stock price may continue to be volatile and could decline substantially.

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