Mesaba Bankruptcy imminent?!

[T-handle]

Not that it's surprising to anyone but found a link:

http://wcco.com/business/local_story_286114917.html

Sources: Mesaba To File For Bankruptcy Today

Bill Hudson
Reporting
(WCCO) A second Minnesota airline is expected to file for bankruptcy protection Thursday afternoon, sources said.

Mesaba Airlines, which is a regional carrier for Northwest Airlines, has been teetering on the verge of bankruptcy since Northwest began missing monthly payments.

On Tuesday, Northwest reduced the money it owes Mesaba, which now totals $30 million for flights and various services, according to an SEC filing.

On Wednesday, Mesaba filed an 8K form with the Securities and Exchange Commission, outlining how much damage Northwest's debts have done to the smaller airline.

In the filing, Mesaba alerts its shareholders that it "continues to assess whether a court-supervised restructuring under Chapter 11 of the Bankruptcy Code is an appropriate alternative to address its financial situation."

Mesaba flies under the Northwest Airlink name and gets its schedule, passengers, planes and revenue from Northwest.

Northwest Airlines filed for Chapter 11 bankruptcy protection on Sept. 14.

Mesaba's losses could ripple throughout much of Minnesota, as it is the only airline that serves smaller cities, such as Grand Rapids, Brainerd, Bemidji and International Falls.

 

[Rossa]

You're right!!
Here come the Avro furloughs (out-of-order furloughing has been done before), concessions, downgrades and resignations. I hate to put such a gloom and doom prophecy on this one, but ALPA is really going to have to do some fancy footwork to impress a BK judge that we are working with management and that he/she shouldn't "rubber stamp" all their demands!!!
Beware, anyone who takes a "I'll resign before I do that" approach, may be forced to do exactly that - NWA is playing for keeps, don't think that they won't run over a puny regional partner, if that's what it takes! So don't get on this board and spit fire about what you're going to do - we're all going to be making tough decisions soon.
Good luck to all!!

By the way, 9E has less cash than Mesaba - what's going on over there guys, you're strangely silent on the big meeting in MEM which took place this month. What gives??????????

 

[Mugs]

You're right!!
Here come the Avro furloughs (out-of-order furloughing has been done before), concessions, downgrades and resignations. I hate to put such a gloom and doom prophecy on this one, but ALPA is really going to have to do some fancy footwork to impress a BK judge that we are working with management and that he/she shouldn't "rubber stamp" all their demands!!!
Beware, anyone who takes a "I'll resign before I do that" approach, may be forced to do exactly that - NWA is playing for keeps, don't think that they won't run over a puny regional partner, if that's what it takes! So don't get on this board and spit fire about what you're going to do - we're all going to be making tough decisions soon.
Good luck to all!!

By the way, 9E has less cash than Mesaba - what's going on over there guys, you're strangely silent on the big meeting in MEM which took place this month. What gives??????????

I remember the picture of one of your picketing pilots holding up the "I make $19,000 a year" sign. Would it be that hard to walk away from it when they come asking for concessions? In this environment, it just seems like many F/Os already facing low pay and nothing but stagnation ahead at best would have no problem packing up the crash pad and heading home. There used to be the possibility of a light at the end of the tunnel for a regional F/O. It isn't there anymore. Management should figure out how to fix this without going after the employees. Unfortunately, that won't happen.

 

[jarhead]

They just filed 10 minutes ago

 

[Waylon]

Do you think Country Wide the company I have my home loan with, will let me file chap. 11 while I reorganize and grab my ankles.

 

[Dodge]

what's the point

 

[jarhead]

Do you think Country Wide the company I have my home loan with, will let me file chap. 11 while I reorganize and grab my ankles.

If you do file, you better do it before October 17th. But yes, individuals do file for bankruptcy. It just gets harder for business and individuals to do it on the 17th.

 

[platinumclub]

What about the guys in the CRJ who are locked into a 1 year contract and are potentially not gonna be furloughed, how do they walk away? Does the contract become void if bankruptcy is filed or wage concessions are inforced?

 

[Dodge]

Oh, they will be furloughed. If ALPA can't even stand for seniority, we might as well close the doors for good.

 

[TinGoose1]

If management tries to impose changes to your contract, just walk off the job. Your MEC has the right to withdraw services if they alter your contract. Mesaba management can submit a proposal to the judge who will in turn try to impose them on your labor group. If your labor group doesn't like the terms, then you have the right to withdraw your services. If I were in the Mesaba pilot's shoes, I'd walk if they made any changes at all. The only way to stop this insanity is to dig your heels in and say no more. Good luck guys, God speed.