Mesa Air to shut Air Midwest, cut small city stops

Mesa purchased Air Midwest in 1991 and used it primarily for government-subsidized flights. By shutting it down, Mesa Air Group will get out of the Essential Air Service program altogether.

Gillman said the company will try to lease, sell or dispose of Air Midwest's 20 Beech 1900D aircraft.

"While this was an extremely difficult decision, and one that the company worked tirelessly to avoid, we are working diligently to minimize the impact this decision will have on Air Midwest's passengers and employees," Ornstein said in a statement.

Mesa's shares closed down 9 cents, or 12.8 percent, to 64 cents.

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