Another day, another huge sell-off in Mesa Air Group shares.

After the stock gained a small bit of footing yesterday, today was another story.

On massive volume of more than 4 million shares (the average daily volume here is about 400K), shares of the beleaguered airline ended the day down 27% to 96 cents.

Yep, the stock has dropped below a buck.

Market cap for the airline is now only $25.8 million.

The airline filed with the SEC Tuesday, saying that it will ask shareholders on May 13 to approve a plan that would allow the company to issue $37.8  million in new stock that can be used to repay the senior convertible notes that are due in June.

Holders can force the company to repurchase the notes on June 16, 2008.

The airline was also the subject of a big two-page spread by Dawn Gilbertson in the Arizona Republic today. PlaneBusiness Banter and our recent awarding of our PlaneBusiness Ron Allen Airline (Mis)Management Award to the Mesa Board of Directors was mentioned in the piece. That column, which was first published in our Mar. 7 issue of PlaneBusiness Banter is publicly accessible here.

According to Dawn,

“Industry newsletter PlaneBusiness Banter last month gave its annual airline-mismanagement award to Mesa Air Group’s board of directors, skewering the airline for its financial performance and other woes.

Ornstein dismissed the newsletter and some of its comments about the airline’s finances.”

I’m speechless. Thanks to my attorney.

Speaking of — I just realized that I have not posted an update to our ongoing lawsuit with Mesa Air Group here in PlaneBuzz — although PlaneBusiness Banter subscribers get more or less a weekly update.

I’ll do that this week.

Ticker: (Nasdaq:MESA)

Technorati Tags: airline stocks, Mesa Air Group