In another development that may further blur the line between regional and mainline carriers, Mesa Air Group is exploring the possible use of Boeing [BA] 737s.

As it reviews future growth opportunities, CEO Jonathan Ornstein said the carrier is studying the possible use of narrow-body planes in a point-to-point operation. "In our view, it would appear that the narrow-body aircraft would be more cost-effective than large regional jets in a low-cost operation outside of the traditional hub-and-spoke," he told CRAN.

Mesa is considering the merits of leasing B737-300s, which have been configured to carry 128 to 149 passengers.

Ornstein is not saying just how the regional carrier may use a mainline jet. However, he was quick to say that any venture would be done in "cooperation" with one of its code- share partners. He does not see a Mesa pilot flying a B737 for a mainline partner.

Mesa flies regional jets for America West [AWA], United Airlines [UALAQ] and US Airways [UAIR]

"If JetBlue [JBLU] is right, there are 100 markets that we can fly from. I am leaning toward an ultra-low cost operation. We are looking at existing models and the most successful, Ryanair [RYAAY]," Ornstein said.

Don't get confused. Mesa is not taking a page from the Atlantic Coast Airlines [ACAI] business plan. He said Atlantic Coast's proposed Independence Air is "flawed" because it is precisely that - independent of its major carrier partners. Independence plans to fly regional jets and Airbus 319s. Ornstein was unsuccessful last fall in buying Atlantic Coast.

>>Contact: Jonathan Ornstein, Mesa, (602) 685-4001.<<