Mesa To Fight Delta On Contract Suit

NEW YORK (AP) — Mesa Air Group Inc. said Friday it will fight Delta Air Lines Inc.'s attempt to end its contract with the regional airline and Mesa subsidiary Freedom Airlines Inc.

Delta filed suit Aug. 19 seeking to end the Delta Connection Agreement with Mesa and Freedom, claiming Freedom breached the contract.

But in a filing Friday with the Securities and Exchange Commission, Mesa said it "vehemently denies" there is any basis for Delta's request.

Mesa said it "intends to vigorously defend its rights" and expects to countersue Delta. It accuses the world's biggest airline operator of "bad faith actions" and breaches of contract.

Mesa said Freedom's alleged contract breach relates to Delta's efforts to cut costs at Freedom.

"Freedom believes that Delta's claims are wholly without merit and are a direct effort by Delta to circumvent the injunction prohibiting Delta from terminating Freedom's Connection Agreement," Mesa's filing said.

In a statement Friday, Delta said that it was unable to resolve the contractual billing dispute with Mesa and was left with no choice but to ask a court to resolve the issue.

"We expect Mesa and Freedom to keep their promises to Delta and our customers, and so far, they have refused to do so," Delta said.

Mesa shares rose 2 cents, or 11 percent, to 25 cents after-hours electronic trading Friday.