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Mesaba Files for Chap. 11

T-handle

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http://biz.yahoo.com/bw/051013/135732.html?.v=1

Press Release

Source: Mesaba Aviation, Inc.

Mesaba Aviation Files for Chapter 11 Reorganization to Expedite Restructuring

Thursday October 13, 4:58 pm ET

Mesaba Will Continue Normal Operations

EAGAN, Minn.--(BUSINESS WIRE)--Oct. 13, 2005--Mesaba Aviation, Inc., a subsidiary company of MAIR Holdings, Inc. (NASDAQ:MAIR - News), today announced it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Minnesota.

The company emphasized that it will continue its regular operations to serve customers, honor tickets, and operate its schedule as a Northwest Airlink partner.

"This was a difficult but necessary step; Northwest's actions since filing bankruptcy along with the continuing distress affecting the entire industry requires us to change and to do so quickly," said John Spanjers, Mesaba Airlines president and chief operating officer. "The changes imposed on us by Northwest since its filing in September have left us with insufficient revenues to support our cost structure.

"This work will be invisible to our passengers," Spanjers continued. "As we go through this process, we will remain focused on delivering the highest levels of safety, reliability and service that our passengers have come to expect from us."

Prior to its filing, Northwest on September 12th failed to make a semi-monthly payment of approximately $18.5 million due to Mesaba under the Airline Services Agreement (ASA) for services rendered in the last half of August. On the following payment due dates of September 26 and October 11, Northwest made partial payments of $1.6 million and $15.7 million respectively. As a result, Mesaba has a net unsecured claim of approximately $30 million in the Northwest Chapter 11 case.

In addition, Northwest has advised Mesaba that it intends to reduce the number of Avro and Saab aircraft in Mesaba's fleet and that Mesaba should count on receiving only two of the fifteen new CRJ aircraft committed under the ASA. Further, Northwest also has notified Mesaba of Northwest's intent to terminate the sub-leases on all 35 of the Avros.

"The combination of the loss of $30 million of revenue and the reduction in our fleet size by at least 28 percent has left us with no choice but to take this difficult step," Spanjers said. "We view bankruptcy as a last resort, but a necessary one because no other alternatives would allow us to change as rapidly as we need to."

"We worked hard to avoid Chapter 11, but we firmly believe this action affords us the best opportunity to restructure our finances and to be successful over the long run," Spanjers added. "We have valuable assets, including our dedicated employees who continue to focus on operating a safe, reliable airline. We plan to emerge from this Chapter 11 case as a lean and competitive regional carrier flying for Northwest or other major airlines."

MAIR Holdings, Mesaba's parent company, supports the airline's decision to pursue restructuring through the Chapter 11 process and has, in fact, offered to extend debtor-in-possession financing to Mesaba.

For further information regarding Mesaba's restructuring, visit www.mesaba-restructuring.com
 

JohnDoe

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Does Mesaba get stuck with the leases that NW is getting rid of or what?

If not, how does 30 mil. in missed payments equal a chap 11 filing....?

Good luck to everybody. Anybody know where that DeLorean (sp) is so I can go back and keep myself out of this career???
 

Butters

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F*** this management team right to hell.

MAIR Holdings has MILLIONS in the bank, yet Mesaba Aviation files Chapter 11. They are only doing this to extort cost cuttings from labor.

I hope the judge tells them they can pack their Chapter 11 filing right up their a**.

Anyone who thinks this filing is legit is either: a) management, b) a fool, or c) someone who hasn't done his/her research.

TOTAL B.S.! This place can burn to the ground for all I care. If that is what they think of their employees, up yours.
 

Butters

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Keep in mind if we don't like what the judge says, we can strike.

We strike, company folds for good.

Keep that in mind, Foley, you weasel.
 

A350

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Did any of you think that any of the "remora" regionals, who suck their blood off the mainline partner wouldn't suffer the same fate when the host organism dies or files?

A350
 

Yudso

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A350,

At least someone, other than Spanjers, Foley, Pohlad, is enjoying the show. I didn't realize we were stealing all the 34 seat flying.
 

sf3boy

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Who cares??? It's not like any of the FO's are gonna go along with concessions. They are all gonna be furloughed along with some captains.

Keep your suitcase in your closet, Paul Foley. No need in coming out to MN next week. You've done quite enough for this airline.
 

Butters

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A350 said:
Did any of you think that any of the "remora" regionals, who suck their blood off the mainline partner wouldn't suffer the same fate when the host organism dies or files?

A350

Since you have it all figured out explain to me how a company files Chapter 11 with:

a) No debt

b) Well over $100 million in the bank

c) No control over its own share of the flying


The child (XJ) may be poor because the parent (MAIR) cut off the allowance, but that doesn't mean there is no money in the house. The parents are eating caviar telling the kid to suck it up and go make some raman.

Yep. Same situation.
 

captpetefam

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What a crock!

MAIR Holdings, Mesaba’s parent company, supports the airline’s decision to pursue restructuring through the Chapter 11 process and has, in fact, offered to extend debtor-in-possession financing to Mesaba.

So, let me get this straight. We MADE you the money you have in the bank ($130.45 MILLION to be exact), you spent a bunch of it to keep that write-off you call Big Sky flying, and you are going to be SOOOO gracious to give us a heck-of-a-deal on our bankruptcy restructuring. OH, THANKS!!

Butters said:
Keep in mind if we don't like what the judge says, we can strike.

We strike, company folds for good.

Keep that in mind, Foley, you weasel.

I agree. Grab the signs and tell them to blow it out their pie hole!! I just did the math: As a Second Year FO, I could make $14.00/hr for 40 hours a week and make what I do at XJ. Hmmmmm... do you think I want to give some money back! I'm going to go find a fishin' hole... call me when it's time to vote 'NO!':uzi: :pimp:
 

KaptainKarl

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Doesn't matter. You can have zillions stashed away. The judge will give it to them. The avros, all of them, will be gone since xj is bankrupt. XJ will be an airline of 450-500 pilots (if that). It will do little to beat the strike drums lilke last time cause the senior captains are pu$$ies. Pay cuts for all. Anyone been there under 9 years and stays needs a wake up call as they will be better off financially at Domino's Pizza. Spanjers and Foley are lovin it. Both will get healthy bonuses for gaining labor relief with money in the bank, a trick never seen before. Imagine that XJ setting a precedent for something.
 

captpetefam

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Yeah... so there....

Yudso said:
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Well said, Yudso.
 

Yudso

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Not only do you have to remeber to log off in the crew room, but at home when your kid is running around.
 

IFIxUmUBrakeUm

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You all act like this is a surprize. I mean come on, the current dream team we have were put there by nwa, why? because they are yes men, do as they are told. Do you people think that john s. can run a company? no he cant. I hope that he is part of the "cooking the books" scandle at nwa so he can do his time.

Any one up for a hostile take over of this company. lets get the ball rolling.

John S. could be fired if the stockholders want him to be. GET THE PICTURE!!!!!!!!!

2 can play at this game
 

FSIGRAD

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Hey yudso,
Looks like twice in one year for you and me. What airline should we go and jinx next?
 

jehtplane

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FSIGRAD said:
Hey yudso,
Looks like twice in one year for you and me. What airline should we go and jinx next?





Good luck you guys to you and yours, I wish you the best.
 

mesaba2425

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There goes the stock price. Oh well...... I'm glad I sold at $9.23 a few months ago.
 

captpetefam

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You and what financial army?

IFIxUmUBrakeUm said:
You all act like this is a surprize. I mean come on, the current dream team we have were put there by nwa, why? because they are yes men, do as they are told. Do you people think that john s. can run a company? no he cant. I hope that he is part of the "cooking the books" scandle at nwa so he can do his time.

Any one up for a hostile take over of this company. lets get the ball rolling.

John S. could be fired if the stockholders want him to be. GET THE PICTURE!!!!!!!!!

2 can play at this game

Yeah... Sure... have you noticed the pilot rates? I know you guys don't get paid much either so where-in-the-heck do you think we can get the cash to get majority shares? Besides, what makes you think NWA and all it's cronnies and board members will sell their stock? Look at the stock sale history: they're not selling squat!

MAIR Insider Sales last two years:
http://finance.yahoo.com/q/it?s=MAIR
Click on Insider Transactions.
These guys talk with their $$.
 
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