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Northwest to buy Mesaba Airlines
Monday January 8, 2007
Northwest Airlines said Friday that it has reached an agreement to acquire its regional Airlink partner Mesaba Airlines.
The offer must be approved by the bankruptcy court and Mesaba parent MAIR Holdings. Both Mesaba and Northwest have been in bankruptcy for more than a year. Mesaba operates a fleet of 46 Saab 340s as an Airlink partner.
"Northwest believes that the proposed transaction would be in the best interest of Mesaba's creditors, its employees and the many customers who depend on Mesaba," NWA said in a statement. If the deal goes through, it will be included as part of NWA's reorganization plan due Jan. 16.
"We think it's a good deal," a Northwest spokesperson told ATWOnline. "It secures our core business and positions us for growth." The spokesperson added that representatives from Mesaba and its creditors already have agreed to the plan.
The acquisition would not affect NWA's plan to establish a wholly owned regional, Compass Airlines. "We are still moving forward with Compass," the spokesperson said. NWA three months ago announced orders for 36 E-175s to be operated by Compass, along with 36 CRJ900s (ATWOnline, Oct. 6, 2005). Friday's announcement creates the possibility that Mesaba will operate the CRJs along with the Saabs.
Monday January 8, 2007
Northwest Airlines said Friday that it has reached an agreement to acquire its regional Airlink partner Mesaba Airlines.
The offer must be approved by the bankruptcy court and Mesaba parent MAIR Holdings. Both Mesaba and Northwest have been in bankruptcy for more than a year. Mesaba operates a fleet of 46 Saab 340s as an Airlink partner.
"Northwest believes that the proposed transaction would be in the best interest of Mesaba's creditors, its employees and the many customers who depend on Mesaba," NWA said in a statement. If the deal goes through, it will be included as part of NWA's reorganization plan due Jan. 16.
"We think it's a good deal," a Northwest spokesperson told ATWOnline. "It secures our core business and positions us for growth." The spokesperson added that representatives from Mesaba and its creditors already have agreed to the plan.
The acquisition would not affect NWA's plan to establish a wholly owned regional, Compass Airlines. "We are still moving forward with Compass," the spokesperson said. NWA three months ago announced orders for 36 E-175s to be operated by Compass, along with 36 CRJ900s (ATWOnline, Oct. 6, 2005). Friday's announcement creates the possibility that Mesaba will operate the CRJs along with the Saabs.
