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.

 

[SRMairlines]

Airlines Suck!

Ref: 9E MEM meeting

Our Meeting was with the VP of FLT OPS, CEO, and Co. They wanted us to resign our existing contract so we could continue the same cost structure. Our MEC said no way and now management broke off negotiations until Dec. S.H.*.T. Storm headed our way too. PCL is facing a cash crisis too. CH 11 probably isn't an option for us. We don't have anything to restructure!

 

[NEWSOUTH]

MEM Meeting

Why has there been no communications regarding Tuesdays meeting in MEM? Why am I just reading about it now? Sorry to hijack the thread.

 

[Butters]

PCL is facing a cash crisis too. CH 11 probably isn't an option for us. We don't have anything to restructure!

And Mesaba does?

I'm not saying that to be smart. I just don't understand how a company that doesn't control its own business model other than labor can file chapter 11 since you have to have a restructuring plan.

Sounds like the Waterboy: "In.. in... in... in... instead of flying what Northwest gives us, we're gon... gon... gon... gonna fly what Northwest gives us."

Pinnacle boys, good luck. I have a sick feeling this s***storm is rolling south.

 

[cougarx530]

And Mesaba does?

I'm not saying that to be smart. I just don't understand how a company that doesn't control its own business model other than labor can file chapter 11 since you have to have a restructuring plan.

Sounds like the Waterboy: "In.. in... in... in... instead of flying what Northwest gives us, we're gon... gon... gon... gonna fly what Northwest gives us."

I'm sure if management could have it their way, they'd have reserve pilots driving the Spectrum Shuttle! I can see it now..... line#666 ,Pairing M1234......MILL-HUB, HUB-MILL, MILL-HUB..., Would we still get block or better?

 

[Terry Hunter]

I'm sure if management could have it their way, they'd have reserve pilots driving the Spectrum Shuttle! I can see it now..... line#666 ,Pairing M1234......MILL-HUB, HUB-MILL, MILL-HUB..., Would we still get block or better?

Instead of "MILL", it's "MEL". As if it will matter.

 

[PCL_128]

Why has there been no communications regarding Tuesdays meeting in MEM? Why am I just reading about it now? Sorry to hijack the thread.

The information is being put together and you'll receive a full summary of the goings-on by early next week. The short version: a meeting took place with upper management where they read straight out of the doom and gloom playbook. The next day, management broke off negotiations until December 6th.

 

[Rossa]

Are NWA paying you guys anything?
How do you plan on making it to December, based on the grim financial info. you guys have posted on this board?
Either you get on the Chpt 11 boat now or plan on the Chpt 7 raft later!